Meta, parent of Facebook and Instagram, turned in better-than-expected earnings for the first quarter of 2023 — even as net income dropped sharply on a year-over-year basis.
Overall, the company reported revenue of $28.65 billion, up 3% from the year prior, and net income of $5.7 billion (or $2.20 per share), down 24%. Analysts on average expected Meta to post revenue of $27.65 billion and EPS of $2.03, according to Refinitiv.
“We had a good quarter and our community continues to grow,” Meta chairman, CEO and co-founder Mark Zuckerberg said in prepared remarks. “Our AI work is driving good results across our apps and business. We’re also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long-term vision.”
The company has embarked on a “year of efficiency,” as Zuckerberg has dubbed its cost-cutting initiatives. In November Meta announced layoffs eliminating 11,000 jobs and last month said it would cut another 10,000.
In announcing Q1 results, the company said Facebook averaged 2.04 billion daily active users in the period, up from 2.0 billion the prior quarter.
In 2022, Meta’s stock dropped 64%, shedding some $620 billion in market value — but it has rebounded strongly this year, up 68% year to date as of market close Wednesday.