NASDAQ$META

Meta Platforms Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Meta's Q2 2023 results showcased strong engagement across its apps and significant advancements in its AI and metaverse initiatives.

Meta Platforms, Inc. reported an 11% increase in revenue to $31.999 billion for Q2 2023. The company's net income rose by 16% to $7.788 billion, with diluted earnings per share (EPS) increasing by 21% to $2.98. Strong growth in ad impressions and a focus on AI and metaverse investments highlighted the quarter.

  • Revenue increased by 11% year-over-year to $31.999 billion.
  • Net income grew by 16% year-over-year to $7.788 billion.
  • Diluted earnings per share (EPS) increased by 21% year-over-year to $2.98.
  • Family daily active people (DAP) reached 3.07 billion on average for June 2023, a 7% increase year-over-year.

Headline financials

Total Revenue

$32B

Previous: $28.8B+11.0%
EPS (adj)

$2.98

Previous: $2.46+21.1%
Daily Active People

3.1B

Previous: 2.9B+7.0%
Ad Impressions Growth

34.0%

Previous: 0.0%
Ad Price Growth

-16.0%

Previous: 0.0%
Capital Expenditures

-$13.1B

Previous: -$13B-0.3%
Free Cash Flow

-$5.27B

Previous: -$6.33B+16.7%
Net Income

$7.79B

Previous: $6.69B+16.5%
Operating Income

$9.39B

Previous: $8.36B+12.4%
Gross Profit

$26.1B

Previous: $23.6B+10.3%
Cash & Equivalents

$28.8B

Previous: $12.7B+127.0%
Total Assets

$207B

Previous: $170B+21.7%
Stock-Based Comp

$4.06B

Previous: $3.35B+21.1%

Revenue & EPS history

Meta · Revenue · Quarterly

$32B

Q2 2023+11%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Meta · $32B total across 2 segments · Q2 2023

  • Family of Apps
    $31.7B+11.8%
  • Reality Labs
    $276M-38.9%

Forward guidance

Meta expects Q3 2023 total revenue to be in the range of $32-34.5 billion. Full-year 2023 total expenses are anticipated to be in the range of $88-91 billion. Reality Labs operating losses are expected to increase year-over-year in 2023.

Tailwinds

  • Expects third quarter 2023 total revenue to be in the range of $32-34.5 billion.
  • Assumes a foreign currency tailwind of approximately 3% to year-over-year total revenue growth in the third quarter.
  • The European Commission’s adoption of a final adequacy decision, which allows us to continue to provide our services in Europe.
  • Expect full-year 2023 capital expenditures to be in the range of $27-30 billion.
  • Expect the tax rate for the rest of the year to be similar to the second quarter of 2023.

Headwinds

  • Anticipates full-year 2023 total expenses will be in the range of $88-91 billion, increased from prior range due to legal-related expenses.
  • Expects Reality Labs operating losses to increase year-over-year in 2023.
  • Expects higher infrastructure-related costs next year, including increased depreciation expenses.
  • Anticipates growth in payroll expenses as workforce composition evolves toward higher-cost technical roles.
  • Continues to see increasing legal and regulatory headwinds in the EU and the US that could significantly impact the business and financial results.

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 Q2 2023

Historical avgQ2 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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