Shulou(Shulou.com)11/24 Report--

Thank you, Mr. Air, CTOnews.com netizens, and Daniel Wu for your clue delivery! On the morning of July 27, Beijing time, Facebook parent company Meta today released its unaudited financial results for the second quarter of fiscal year 2023 ended June 30.

According to the report, Meta's second-quarter revenue was $31.999 billion, up 11% from $28.822 billion in the same period last year, and 12% year-on-year excluding exchange rate changes; net profit was $7.788 billion, up 16% from $6.687 billion in the same period last year; and diluted earnings per share was $2.98, up 21% from $2.46 in the same period last year.

Meta's second-quarter revenue and earnings per share beat Wall Street analysts' expectations, as did the number of monthly active users and average revenue per user. At the same time, Meta's outlook for third-quarter revenue also exceeded analysts' expectations, sending its shares up nearly 8 per cent in after-hours trading.

Second quarter main results:-- Meta's second-quarter revenue was $31.999 billion, up 11% from $28.822 billion in the same period last year, and 12% year-on-year excluding exchange rate changes

-- Meta's second quarter operating profit was US $9.392 billion, up 12% from US $8.358 billion in the same period last year.

-- Meta's operating margin was 29% in the second quarter, compared with 29% in the same period last year.

-- Meta's net profit in the second quarter was $7.788 billion, up 16% from $6.687 billion in the same period last year.

-- Meta's diluted earnings per share were $2.98 in the second quarter, up 21% from $2.46 in the same period last year.

Operating points for the second quarter:

-in June 2023, the average number of daily active users (DAP) of the "family" of Meta services (including Facebooka, Instagram, WhatsApp and Messenger) was 3.07 billion, an increase of 7 per cent over the same period last year.

As of June 30, 2023, the number of monthly active users (MAP) of the "family" of Meta services was 3.88 billion, an increase of 6 per cent over the same period last year.

-in June 2023, the average number of daily active users (DAU) of Facebook was 2.06 billion, an increase of 5 per cent over the same period last year

-as of June 30, 2023, the number of monthly active users (MAU) of Facebook was 3.03 billion, an increase of 3% over the same period last year.

-- Meta app Family's impression per ad in the second quarter increased by 34% compared with the same period last year, and the average price per ad increased by 16% compared with the same period last year.

-- the total cost and expenditure of Meta in the second quarter was $22.61 billion, an increase of 10% over the same period last year, including $1.87 billion in accrued judicial expenses and $780 million in restructuring expenses.

-- Meta second quarter capital expenditure (including principal payment on financial leases) was $6.35 billion

-- Meta bought back $793 million worth of Class A common shares in the second quarter. As of June 30, 2023, the remaining repurchase amount authorized by Meta was $40.91 billion.

-- at the end of the second quarter of 2023, Meta's cash, cash equivalents and marketable securities totaled US $10.96 billion

-- as of June 30, 2023, Meta's long-term debt was $18.38 billion

As of June 30, 2023, Meta had a total of 71469 employees, a decrease of 14% compared to the same period last year.

Financial analysis: revenue: Meta's second-quarter revenue was $31.999 billion, up 11% from $28.822 billion in the same period last year, and 12% year-on-year, excluding currency changes.

Meta's revenue from advertising was $31.498 billion in the second quarter, compared with $28.152 billion in the same period last year.

Meta's other revenue was $225 million in the second quarter, compared with $218 million in the same period last year.

Costs and expenses: Meta's total costs and expenses were $22.607 billion in the second quarter, up 10% from $20.464 billion in the same period last year. Of this total, revenue costs were $5.945 billion, compared with $5.192 billion in the same period last year; R & D expenditure was $9.344 billion, compared with $8.69 billion in the same period last year; marketing and sales expenses were $3.154 billion, compared with $3.595 billion in the same period last year; general and administrative expenses were $4.164 billion, compared with $2,987 million in the same period last year.

Operating profit: Meta's second-quarter operating profit was $9.392 billion, up 12% from $8.358 billion in the same period last year.

Operating margin: Meta's operating margin was 29% in the second quarter, compared with 29% in the same period last year.

Income tax reserve and effective tax rate: the Meta income tax reserve was $1.505 billion in the second quarter, compared with $1.499 billion in the same period last year, which was basically the same as the same period last year. The effective tax rate for Meta was 16% in the second quarter, compared with 18% in the same period last year.

Net profit: Meta's second-quarter net profit was $7.788 billion, up 16% from $6.687 billion in the same period last year.

Meta's diluted earnings per share were $2.98 in the second quarter, up 21% from $2.46 in the same period last year.

Capital expenditure: Meta's capital expenditure (including principal payments on financial leases) was $6.35 billion in the second quarter.

Cash and marketable securities: at the end of the second quarter of 2023, Meta held a total of $10.96 billion in cash, cash equivalents and marketable securities.

Operating cash flow and free cash flow: Meta's net cash from business operations was $17.309 billion in the second quarter, compared with $12.197 billion in the same period last year. Meta's free cash flow was $10.955 billion in the second quarter, compared with $4.45 billion in the same period last year.

Total number of employees: as of June 30, 2023, Meta had a total of 71469 employees, a decrease of 14% compared to the same period last year.

Second-quarter results compared with analysts' expectations: Meta's second-quarter revenue was $31.999 billion, beating Wall Street analysts' expectations. On average, 39 analysts had expected Meta's second-quarter revenue to reach $28.13 billion, according to Yahoo Finance.

Meta's diluted earnings of $2.98 per share in the second quarter also beat analysts' expectations. On average, 37 analysts expect Meta to earn $2.63 a share in the second quarter, according to Yahoo Finance.

Meanwhile, Meta's Facebook had an average of 2.06 billion daily active users, slightly higher than the average of 2.04 billion analysts surveyed by StreetAccount had expected, while monthly active users were 3.03 billion, slightly higher than the average of 3 billion analysts surveyed by StreetAccount had expected. In addition, Meta's average revenue per user (ARPU) was $10.63, higher than the average estimate of $10.22 for analysts surveyed by StreetAccount.

Performance outlook: Meta expects total revenue of between $32 billion and $34.5 billion in the third quarter of 2023, assuming that currency movements in the third quarter will have a positive impact on year-on-year growth of total revenue of about 3 per cent compared with the current exchange rate. The average revenue outlook range was $33.25 billion, exceeding analysts' expectations. On average, 38 analysts expect Meta's third-quarter revenue to reach $28.29 billion, according to Yahoo Finance.

On the expenditure side, Meta expects total spending for the whole of 2023 to be between $88 billion and $91 billion, up from the previous forecast of $86 billion to $90 billion, due to legal charges in the second quarter of 2023. This vision includes approximately $4 billion in restructuring costs related to facility consolidation costs, severance payments and other personnel costs. In addition, Meta expects the operating loss of Reality Labs (reality Lab) to expand in 2023 compared with the same period last year.

Meta also expects full-year capital expenditure in 2023 to be between $27 billion and $30 billion, down from its previous forecast of $30 billion-$33 billion, due to cost savings, particularly in non-artificial intelligence servers, and a shift in capital expenditure from delays in project and equipment delivery to 2024 rather than a reduction in the overall investment plan.

With no change in the US tax code, Meta expects tax rates for the rest of the year to be similar to those in the second quarter of 2023.

In addition, Meta continues to monitor the active regulatory landscape. With regard to EU-US data transmission, Meta said it had seen a positive development: the European Commission adopted a final adequate decision to allow the company to continue to provide services in Europe. This is good news-although overall, Meta continues to face increasing legal and regulatory headwinds in the EU and the US, which could have a significant impact on its business and financial performance.

Share price movements: Meta shares rose $4.10, or 1.39%, to close at $298.57 in regular Nasdaq trading. Meta shares rose another $22.95, or 7.69 per cent, to $321.52 in after-hours trading as of 06:13 EDT on Wednesday (06:13 Beijing time on Thursday). In the past 52 weeks, the highest price for Meta is $318.68 and the lowest price is $88.09.

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