Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Facebook owner Meta’s profits exceed expectations

Facebook owner Meta’s profits exceed expectations

Meta, Facebook and Instagram's parent firm, has reported a profit of $5.7bn (£4.6bn) for the first quarter of this year, surpassing expectations for a period in which many jobs were cut.

It said artificial intelligence (AI) was "driving good results" across its business.

Total revenue was $28.6bn, while the number of people on Facebook every month rose to just under three billion.

"Our community continues to grow," said chief executive Mark Zuckerberg.

"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," he said.


'No longer behind in building AI'


Meta sees "an opportunity to introduce AI agents to billions of people in ways that will be useful and meaningful," Mr Zuckerberg told investors.

While offering few details, he said that Meta was "exploring chat experiences in WhatsApp and Messenger, visual creation tools for posts in Facebook and Instagram and ads, and over time video and multimodal experiences as well."

The company intends to commercialise its privately-run generative AI, joining Google in finding practical applications for the tech - because the industry is awash with hype around its capabilities.

Meta established Facebook's AI Research laboratory in 2013, but has not made big inroads in this area yet, as some other big tech firms - such as Microsoft - have done.

But Mr Zuckerberg insisted Meta was "no longer behind in building our AI infrastructure" and said generative AI Meta products, which can instantly create sentences and graphics, would be released in the coming months.

He added the move would not be at the cost of the metaverse, Meta's virtual reality project.

Meta's Reality Labs division reported a net loss of $4bn last quarter, and the company said it expected "operating losses to increase year over year in 2023".

However, Mr Zuckerberg said the "narrative that has developed that Meta is moving away from the metaverse" was "not accurate", adding it still planned to reveal the next Quest VR headset later this year.


Cost-cutting pays off


The positive financial figures coincide with a period where Meta has slashed jobs and projects. The aim was to turn 2023 into "a year of efficiency," said Mr Zuckerberg.

Meta has been the most aggressive US big tech firm when it comes to downsizing, shedding almost a quarter of its global workforce, more than 20,000 jobs, in just a few months.

"The year of efficiency is off to a stronger than expected start for Meta," said Insider Intelligence principal analyst, Debra Aho Williamson.

"In this economic environment - and after the disaster that was 2022 - 3% year over year revenue growth is an accomplishment," she added.

Mr Zuckerberg has called 2022 "a humbling wake-up call" and said it would be wise to "prepare ourselves for the possibility that this new economic reality will continue for many years".

Ben Barringer, from investment management firm Quilter Cheviot, said: "You have to take your hat off to Mark Zuckerberg and Meta given the transformation of the business over the last six months.

"The 'year of efficiency' Zuckerberg likes to talk about is bearing fruit. These results are a strong beat on the expectations and, given the improving macro backdrop, Meta should continue to recover well."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×