Meta reports “good” quarter after revenue growth, launch of Threads and AI products

Mark Zuckerberg praised the company’s performance in the past quarter across its sectors, but Meta said international regulators might be a challenge

Facebook CEO Mark Zuckerberg was pleased with the company’s performance [File] | Photo Credit: FACEBOOK

Meta CEO Mark Zuckerberg noted a “good quarter” for the company’s community and business as the social media giant reported revenue growth of 23% year-over-year to reach $34.15 billion.

Zuckerberg earlier announced that 2023 would be Meta’s year of “efficiency” and the company proceeded to lay off hundreds of workers across its tech and business divisions.

The latest earnings report on Wednesday said that Meta’s headcount was 66,185 as of the end of September, which represented a decline of 24% when compared to last year.

“I’m proud of the work our teams have done to advance AI and mixed reality with the launch of Quest 3, Ray-Ban Meta smart glasses, and our AI studio,” said Zuckerberg, as per the company’s earnings report.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

Meta’s newly launched X-rival, Threads, recorded just under 100 million monthly active users within a few months of launch, said Instagram CEO Adam Mosseri on Thursday. Though many users have left the app due to a number of still missing features, Mosseri promised that improvements and updates would be coming soon.

Meta’s performance indicates the recovery of the online advertising market even as companies and customers cut back on spending due to the cost-of-living crisis.

However, regulatory challenges from the U.S. and the EU persist, with the company noting these movements could “significantly impact” its future financial results.

“Of note, the Federal Trade Commission is seeking to substantially modify our existing consent order and impose additional restrictions on our ability to operate. We are contesting this matter, but if we are unsuccessful it would have an adverse impact on our business,” said Meta in its earnings report.

The social media giant which owns WhatsApp, Facebook, Instagram, and Threads was this week sued by more than 40 U.S. states, which alleged that the company’s products damaged the mental health of young people.

Meta’s shares shot up by 168% in the past year to reach a price of $4.39, as of the end of September.