Meta Platforms, Inc. (NASDAQ: META) released its Q2 2023 results on 26 July 2023, revealing a strong quarter for the company. During the earnings call, CEO Mark Zuckerberg and CFO Susan Li shared insights on the company’s performance, future plans, and financial results.
In terms of financial results, CFO Susan Li reported that Q2 total revenue was $32.0 billion, up 11% or 12% on a constant currency basis. Q2 total expenses were $22.6 billion, up 10% compared to last year. Net income was $7.8 billion or $2.98 per share. The company ended the quarter with $53.4 billion in cash and marketable securities.
Zuckerberg began by expressing satisfaction with the company’s performance in the quarter, noting that more than 3.8 billion people now use at least one of Meta’s apps every month. He also highlighted the company’s exciting roadmap, which includes advancements in Threads, Reels, Llama 2, and other groundbreaking AI products, as well as the upcoming Quest 3 launch.
Threads, a new standalone app, has shown unprecedented growth, with more daily returning users than anticipated. The focus now is on retention and improving the basics before scaling the community and monetizing the platform.
Zuckerberg also touched on the company’s “Year of Efficiency,” which has led to the development of higher quality products at a faster pace. The goal for the rest of 2023 is to create stability for employees, remove barriers, and introduce new AI-powered tools to speed up processes.
Looking ahead, Zuckerberg shared that the company will continue to run as lean as possible, even as financial results improve. While hiring will continue in key areas, the overall growth in headcount will be relatively low. The company is also working on determining the right level of AI capital expenditure to support its roadmap.
Zuckerberg emphasized the importance of AI and the metaverse as the two technological waves Meta is riding. Investments in AI have paid off, improving engagement and monetization across the platform. AI-recommended content is now the fastest-growing category on Facebook’s feed, driving a 7% increase in overall time spent on the platform.
The CEO also highlighted the company’s commitment to the metaverse vision. The upcoming Quest 3 mixed reality headset, which will be launched at Connect, is touted as the most powerful headset yet, offering better displays, resolution, and graphics performance.
Zuckerberg concluded by expressing optimism about the road ahead and gratitude for the journey so far. He emphasized that the company’s focus remains on AI and the metaverse, which will improve everything they do across both mobile apps and the metaverse.
Featured Image Credit: Meta
