NASDAQ$META

Meta Platforms Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Meta's first quarter results in 2023 showed revenue growth and a continued expansion of its user base.

Meta Platforms, Inc. reported a 3% increase in revenue year-over-year, reaching $28.65 billion. The company's family of daily active people (DAP) grew by 5% year-over-year, averaging 3.02 billion in March 2023. Despite increased costs and expenses, Meta is focusing on AI and efficiency to drive future growth.

  • Revenue increased by 3% year-over-year to $28.65 billion.
  • Family daily active people (DAP) reached 3.02 billion in March 2023, a 5% increase year-over-year.
  • Ad impressions across the Family of Apps increased by 26% year-over-year, while the average price per ad decreased by 17%.
  • The company repurchased $9.22 billion of Class A common stock during the quarter.

Headline financials

Total Revenue

$28.6B

Previous: $27.9B+2.6%
EPS (adj)

$2.20

Previous: $2.72-19.1%
Daily Active People

3.0B

Previous: 2.9B+4.9%
Ad Impressions Growth

26.0%

No prior period
Ad Price Growth

-17.0%

No prior period
Capital Expenditures

-$6.84B

Previous: -$5.44B-25.7%
Free Cash Flow

-$1.13B

Previous: $2.02B-156.0%
Net Income

$5.71B

Previous: $7.47B-23.5%
Operating Income

$7.23B

Previous: $8.52B-15.2%
Gross Profit

$22.5B

Previous: $21.9B+2.9%
Cash & Equivalents

$11.6B

Previous: $14.9B-22.4%
Total Assets

$184B

Previous: $164B+12.3%
Stock-Based Comp

$3.05B

Previous: $2.5B+22.1%

Revenue & EPS history

Meta · Revenue · Quarterly

$28.6B

Q1 2023+2.6%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Meta · $28.6B total across 2 segments · Q1 2023

  • Family of Apps
    $28.3B
  • Reality Labs
    $339M

Forward guidance

Meta expects second quarter 2023 total revenue to be in the range of $29.5-32 billion. Full-year 2023 total expenses are anticipated to be in the range of $86-90 billion. Capital expenditures are expected to be in the range of $30-33 billion.

Tailwinds

  • Second quarter 2023 total revenue to be in the range of $29.5-32 billion.
  • Foreign currency headwinds will be less than 1% to year-over-year total revenue growth in the second quarter.
  • Ongoing build out of AI capacity to support ads, Feed and Reels.
  • Increased investment in capacity for our generative AI initiatives.
  • Full year 2023 tax rate percentage to be around 20%.

Headwinds

  • Full-year 2023 total expenses will be in the range of $86-90 billion.
  • Includes $3-5 billion of restructuring costs related to facilities consolidation charges and severance and other personnel costs.
  • Reality Labs operating losses to increase year-over-year in 2023.
  • Pending decision by the IDPC and the pending EU-U.S. Data Privacy Framework.
  • Possibility that the proposed new EU-U.S. Data Privacy Framework will not be fully implemented in time.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.9%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.0%

Avg return

30 days after

58%

35 / 60 earnings

Positive

+31.5%

Q2 2013

Best reaction

-28.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%-9.6%-5.5%
Q4 2025+1.2%+3.4%-3.1%
Q3 2025-2.4%-16.5%-13.8%
Q2 2025+2.3%+9.8%+6.3%
Q1 2025+4.2%+7.0%+17.9%
Q4 2024+1.6%+4.1%-1.2%
Q3 2024-4.3%-5.5%-3.2%
Q2 2024+7.5%+2.7%+12.5%
Q1 2024-11.0%-12.8%-3.6%
Q4 2023+21.7%+16.6%+28.7%
Q3 2023-7.7%-3.2%+8.2%
Q2 2023+5.9%+8.2%-3.0%
Q1 2023+14.9%+17.2%+26.3%
Q4 2022+26.7%+24.9%+24.4%
Q3 2022-28.8%-32.3%-19.0%
Q2 2022+1.0%+0.5%+1.7%
Q1 2022+13.7%+16.7%+7.8%
Q4 2021-25.5%-29.5%-37.3%
Q3 2021-2.7%-0.3%+5.1%
Q2 2021-2.6%-4.3%+1.3%
Q1 2021+8.5%+6.3%+8.3%
Q4 2020-6.0%-7.1%-8.7%
Q3 2020-1.7%-0.9%+3.8%
Q2 2020+8.7%+7.1%+25.9%
Q1 2020+11.9%+12.2%+23.1%
Q4 2019-3.8%-6.2%-11.6%
Q3 2019+1.2%+2.9%+6.5%
Q2 2019-0.8%-3.2%-12.2%
Q1 2019+5.2%+6.0%-1.5%
Q4 2018+15.6%+17.4%+12.5%
Q3 2018+6.8%+5.8%-2.4%
Q2 2018-17.9%-20.3%-18.6%
Q1 2018+9.1%+7.7%+15.8%
Q4 2017+3.2%-3.1%-5.6%
Q3 2017-0.6%+0.1%-2.8%
Q2 2017+3.1%+2.4%+0.6%
Q1 2017-1.3%-1.1%+0.5%
Q4 2016+0.4%+1.3%+5.3%
Q3 2016-7.3%-5.7%-10.9%
Q2 2016+3.1%+2.5%+3.1%
Q1 2016+7.3%
Q4 2015+12.1%
Q3 2015+6.0%
Q2 2015-0.1%
Q1 2015-1.4%
Q4 2014+2.9%
Q3 2014-5.5%
Q2 2014+8.2%
Q1 2014-3.4%
Q4 2013+10.8%
Q3 2013+1.6%
Q2 2013+31.5%
Q1 2013+4.3%
Q4 2010-9.3%
Q4 2012+0.6%
Q3 2011+15.7%
Q3 2012+20.2%
Q2 2011-9.8%
Q4 2011-9.8%
Q2 2012-19.2%
Q1 2012

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