The “year of efficiency” for Meta is starting out relatively decent in terms of revenue, with a 3% increase overall. And despite their plan to cut an additional 10,000 jobs this quarter, things seem to be looking up. At least for now, anyways.

Meta shows growth for advertising and its Family of Apps but a decline in revenue for its other major business segment, Reality Labs. Let’s dive in.

Revenue. Ad revenue increased by about 4.3% in Q1 2023.

• The advertising revenue for Q1 2023 was $28,101 million, an increase of 4.3% compared to the same period in 2022 ($26,998 million).
• Total revenue for Q1 2023 was $28,645 million, an increase of 2.6% compared to the same period in 2022 ($27,908 million).
• Other revenue was $205 million for Q1 2023, a decrease of 5.1% compared to the same period in 2022 ($215 million).

Sure, here is the table with an additional column for the percent difference:

Daily active users. Meta’s Q1 2023 performance also showed impressive growth in user engagement.

• Facebook’s daily active user count increased by 4% to reach 2.04 billion.
• The number of monthly active users was 2.99 billion.
• The “family of apps” category, which includes Instagram and WhatsApp, saw a 5% year-over-year rise in daily active users, totaling 3.02 billion.
• The number of monthly active users in this category also increased by 5% to 3.81 billion.

Good to know. For the full year, analysts are estimating total expenses of $86B-$90B, which includes $3B-$5B of restructuring costs, and expects Reality Labs operating losses to increase this year. 

Dig deeper. You can review the full earnings report here.

Why we care. Meta’s financial performance and growth provides important insights into the current state of the technology industry and the advertising market. The earnings report can give advertisers a sense of the overall demand for technology products and services, such as the company’s two main business segments, Family of Apps and Reality Labs, which can help advertisers understand the trends and opportunities in these areas.