Meta, parent company of Facebook, reported a 3% revenue profit for the first quarter of 2023 which ended March 31.
This comes as a surprise because it exceeded the expected projections of the company and its service outlets.
Meta reported a profit of $5.7 billion (€4.6 billion) in the first quarter of 2023. Total revenue also rose by 3% to $28.6 billion in March from 27.9 billion in the previous quarter last year.
The company has high expectations for the second quarter. It expects the revenue of the second quarter to fall within $29.5 billion and $32 billion. Its revenue in the previous year was $28.8 billion.
Meta’s founder and CEO, Mark Zuckerberg, stated that Artificial intelligence (AI) was driving favourable results around its businesses. He further stated that:
“We are becoming more efficient in developing better products faster and are in a stronger position to achieve our long-term goals.”
Also, he pointed out the two major technological advancements driving Meta’s route. They are “an Artificial intelligence (AI) wave today and building metaverse for the future.”
Since Meta launched Reels, AI has driven an over 24% increase in time spent on Instagram.
According to Meta’s chief, “The company’s AI application is improving the efficiency of monetisation, up by over 40% on Facebook quarter over quarter and 30% on Instagram.”
Notably, the number of Facebook users every month grew to under 3 billion. Facebook’s daily active users reached 2.04 billion, up by approximately 77 million when compared to last year’s figures.
Meta’s products and services include Facebook, WhatsApp, Instagram, Messenger and Meta quest.
This reported profits exceeded expectations for a period which saw many jobs cut off. 13% of Meta’s staff and roughly 11,000 people were laid off last year.
Mark Zuckerberg said these actions were necessary to conform to a new economic reality that will enable the firm to invest in the future.
Last month, the company announced rounds of planned layoffs to further reduce its workforce by approximately 10,000 employees across the family of Apps and reality labs department.
Related to these layoffs and payroll costs, Meta expects to accrue approximately $1 billion in pre-tax severance pay by the end of 2023.