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Meta Platforms, Inc. is an American tech company headquartered in Menlo Park, California. Meta owns and operates several prominent social media platforms and communication services, including Facebook, Instagram, WhatsApp, Messenger and Threads. Meta’s mission is to Build the future of human connection and the technology that makes it possible.
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Meta sees more ad spending from China in Q1
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PALO ALTO, U.S.– Meta reported upbeat quarterly results Wednesday after the bell with its first year-over-year revenue growth in 12 months, thanks to robust advertisement spending in China.
For the three months ended March 31, Facebook parent group Meta reported $28.6 billion in total revenue, up 3% on the year.
Advertising remains the main revenue diver for Meta, bringing in $28.1 billion during the quarter, up 4% year over year.
“Within ad revenue, the online commerce vertical is the largest contributor to year-over-year growth, followed by health care and entertainment and media,” Meta Chief Financial Officer Susan Li said in an earnings call Wednesday. “Online commerce benefited from strong spending among advertisers in China reaching customers in other markets.”
“In particular, we saw acceleration among advertisers in China targeting users in other markets, which we believe was due in part to the dropping shipping cost and easing COVID lockdowns for those advertisers,” Li said. “And then you’ll see FX [foreign exchange] plays a part there as well.”
Meta shares jumped over 10% during extended trading Wednesday.
Facebook, Meta’s mainstay social network, had 2.04 billion daily active users in the January-March quarter, up 37 million from the previous quarter.
The Asia-Pacific region, a longtime bright spot for user growth as its U.S. home market matures, added 19 million daily active users to 873 million during the period. The Asia-Pacific now supplies more than 42% of Facebook’s daily active users and is its largest region.
Meta’s home market, the U.S. and Canada region, added 1 million daily active users, while Europe registered growth of 3 million.
Despite strong advertisement revenue and user growth in the quarter, Meta’s net income dropped 24% to $5.7 billion due to investment in Reality Labs — the business segment that includes the Quest virtual reality headset, VR software and other metaverse-related ventures, as well as artificial intelligence.
“We’ve been focusing on both AI and the metaverse for years. And we will continue to focus on both,” Meta co-founder and CEO Mark Zuckerberg said in the call.
(Source: Nikkei Asia)
