NASDAQ$META

Meta Platforms Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Meta reported financial results for the quarter ended September 30, 2023.

Meta's Q3 2023 earnings revealed a strong performance with a 23% increase in revenue year-over-year, reaching $34.15 billion. Net income soared by 164% to $11.58 billion, and diluted EPS increased by 168% to $4.39. The company also saw growth in daily and monthly active users across its Family of Apps and Facebook.

  • Revenue increased by 23% year-over-year to $34.15 billion.
  • Net income increased by 164% year-over-year to $11.58 billion.
  • Diluted earnings per share (EPS) increased by 168% year-over-year to $4.39.
  • Ad impressions delivered across the Family of Apps increased by 31% year-over-year.

Headline financials

Total Revenue

$34.1B

Previous: $27.7B+23.2%
EPS (adj)

$4.39

Previous: $1.64+167.7%
Daily Active People

3.1B

Previous: 2.9B+7.0%
Ad Impressions Growth

31.0%

No prior period
Ad Price Growth

-6.0%

No prior period
Capital Expenditures

-$19.6B

Previous: -$22.4B+12.4%
Free Cash Flow

-$8.02B

Previous: -$18B+55.4%
Net Income

$11.6B

Previous: $4.4B+163.5%
Operating Income

$13.7B

Previous: $5.66B+142.7%
Gross Profit

$27.9B

Previous: $22B+27.0%
Cash & Equivalents

$36.9B

Previous: $14.3B+157.8%
Total Assets

$216B

Previous: $179B+20.9%
Stock-Based Comp

$3.49B

Previous: $3.13B+11.4%

Revenue & EPS history

Meta · Revenue · Quarterly

$34.1B

Q3 2023+23.2%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Meta · $34.1B total across 2 segments · Q3 2023

  • Family of Apps
    $33.9B+23.7%
  • Reality Labs
    $210M-26.3%

Forward guidance

Meta expects fourth quarter 2023 total revenue to be in the range of $36.5-40 billion. Full-year 2023 total expenses are expected to be in the range of $87-89 billion. Full-year 2024 total expenses to be in the range of $94-99 billion.

Tailwinds

  • Expects fourth quarter 2023 total revenue to be in the range of $36.5-40 billion.
  • Guidance assumes a foreign currency tailwind of approximately 2% to year-over-year total revenue growth in the fourth quarter.
  • Anticipates full-year 2023 total expenses will be in the range of $87-89 billion, lowered from prior range.
  • Expects 2023 capital expenditures to be in the range of $27-29 billion, updated from prior estimate.
  • Expects fourth quarter 2023 and full-year 2024 tax rates to be similar to the third quarter of 2023.

Headwinds

  • Expects Reality Labs operating losses to increase year-over-year in 2023.
  • Expects full-year 2024 total expenses to be in the range of $94-99 billion.
  • Expects depreciation expenses in 2024 to increase by a larger amount than in 2023.
  • Anticipates growth in payroll expenses as we work down our current hiring underrun and add incremental talent to support priority areas in 2024.
  • Expects Reality Labs operating losses to increase meaningfully year-over-year due to ongoing product development efforts.

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 Q3 2023

Historical avgQ3 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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