Meta Q2 results: Profit rises 16% to $7.8 billion as ad sales rebound
Meta, Facebook was a Wall Street darling because of its breakneck growth and big profits. But the company had lost its luster with investors over the past 18 months thanks to a slump in ad sales and what some saw as self-inflicted wounds. On Wednesday, the company appeared to regain some of its footing.
Meta said its revenue for the second quarter jumped 11% from a year earlier, to $32 billion. Profits rose 16%, to $7.8 billion, fueled in part by improvements made to Meta's advertising technology using artificial intelligence, as well as other product tweaks. Meta's improving finances are the second indication in two days that the online ad market, after a long slump brought on by a slowing economy, is showing signs of improvement.
On Tuesday, Google's parent company, Alphabet, also reported strong quarterly results, powered by ads for the Google search engine and renewed momentum for YouTube. «We continue to see strong engagement across our apps, and we have the most exciting road map I've seen in a while,» Mark Zuckerberg, Meta's chief executive, said in a statement. He also pointed to some of the company's high points over the quarter, including the release of new AI technology and Meta's answer to Twitter: Threads.
The results, which surpassed Wall Street's expectations, were bolstered further by the company's making more money from Reels, its TikTok-like video product inside Instagram, which Meta owns. More than 3.88 billion people each month had used one or more of Meta's apps, which include Instagram, Messenger, WhatsApp and Facebook proper, in the most recent quarter, up 6% from a year earlier. Analysts had expected a profit of $7.45 billion on sales of $31.1 billion, according to data compiled by FactSet.
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