Meta Platforms announces 16% increase in Q2 2023 net income to $7.8bn

Meta Platforms Inc., the tech giant behind the Facebook ecosystem, reported a 16% year-over-year (YoY) increase in net income, reaching $7.78 billion for the quarter ending June 30, 2023. This robust performance was delivered amid ongoing business realignment and strategic changes, and resulted from an 11% YoY rise in revenue, which totaled $31.99 billion.

Mark Zuckerberg, Meta Founder and CEO, commented on the encouraging results, stating, “We had a good quarter. We continue to see strong engagement across our apps and we have the most exciting roadmap I’ve seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall.”

Despite the restructuring measures, Meta recorded an income from operations growth of 12% to $9.39 billion. The operating margin remained steady at 29%, and the effective tax rate slightly fell from 18% in 2022 to 16% in 2023.

Meta Platforms net income rises to $7.8bn in Q2 2023, despite business restructuring

The quarter also showcased an upswing in daily and monthly active users across Meta’s platform. Ad impressions delivered across Meta’s suite of apps saw a 34% increase, offset by a 16% decrease in the average price per ad. The company incurred capital expenditures, including principal payments on finance leases, of $6.35 billion in Q2 2023.

As part of its ongoing restructuring, Meta is pursuing various measures to increase efficiency and realign its business and strategic priorities, including completing planned employee layoffs. As of June 30, 2023, the company had $40.91 billion available and authorized for repurchases.