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Facebook parent Meta returned to double-digit revenue growth for the first time since the end of 2021 and forecast better than expected growth in the current quarter, sending its shares up as much as 8 per cent in a sign that the digital advertising slump is easing.
Meta said it expected current-quarter revenue to be in the range of $32bn to $34.5bn — well above analysts’ expectations of a rise to $31.1bn.
Revenues in the second quarter rose 11 per cent to $32bn, above analysts’ expectations of a rise to $31.03bn.
Chief executive Mark Zuckerberg has sought to revive the company from a period of sluggish growth, wider macroeconomic woes and investor concern over his costly bet on the metaverse.
As part of this, over the past six months the company has undergone a major restructuring including a flattening of the management structure and redundancies affecting about 20,000 staff, in what Zuckerberg has dubbed the “year of efficiency”.
Zuckerberg has also set his sights on increasing the company’s investment and capabilities in artificial intelligence.
Net income rose 16 per cent to $7.8bn, compared with consensus expectations of an increase to $7.4bn.
However, costs rose 10 per cent to $22.61bn partly because of legal expenses worth $1.87bn and restructuring charges of $780mn. In May, Meta was hit with a €1.2bn fine by the EU for privacy violations.
“We continue to see strong engagement across our apps and we have the most exciting road map I’ve seen in a while,” Zuckerberg said.
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