symbolMeta released its quarterly earnings after the bell, with results that may not compare to the estimated figures for Refinitiv. Earnings were reported at $2.98 per share compared to the expected $2.91 per share, and revenue was at $32.0 billion compared to the anticipated $31.12 billion. Wall Street is also monitoring Daily Active Users (DAUs), Monthly Active Users (MAUs), and Average Revenue per User (ARPU) metrics, based on estimates from StreetAccount.
As April ended, Facebook parent Meta had put an end to the three-quarter revenue decline, announcing mild sales growth for the first quarter. Investors will be paying attention to whether there are longer-term indications of a recovery in the digital advertising market. Analysts are expecting revenue to rise to 8% in the second quarter and to double digits in the second half of the year. Meta's online ad business has experienced a combination of impacts, including an unstable economy, the ongoing Ukraine war, and the persisting effect of Apple's 2021 iOS privacy alteration. This update made it difficult for firms like Meta, Snap and Twitter to trace users on the web, limiting the performance of many of their customers' ad campaigns.
After reporting, Snap shared third-quarter guidance that did not meet analysts' assumptions, causing their shares to drop by nearly 20% during extended trading and highlighting the company's struggle to cope with Apple's alteration. On the other hand, Alphabet reported figures exceeding expectations in the second quarter, driven by the firm's cloud computing business. Google's ad revenue rose 3.3% from the same time last year.
Meta appears to be having some success in refining its ad system following the iOS privacy change, as seen with the increasing demand for their recently-unveiled Advantage+ service from retailers seeking to allocate more funds for Meta ads for improved results. A William Blair survey has indicated that businesses are pondering a small-scale budget increase for their online marketing activities for the rest of the year.
Analysts have pointed out that although larger companies are willing to increase their digital ad spending, small businesses continue to show anxiety surrounding the economy, which could be a concern for Meta, which receives a substantial portion of its overall sales from smaller and medium-sized companies. Executives will be talking about the results with analysts in a call that starts at 5 p.m. ET.
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