Nearly all of Meta's revenue comes from advertising on its platforms, so a slight shortfall in user numbers also put a dent in an otherwise strong quarter. The company's 'family daily active people' was 3.29 billion on average for September, which was below analysts' expectations of 3.31 billion. This user metric miss could prove concerning, as Meta will need to extract more revenue from its current user base amidst slowing growth.
CEO Mark Zuckerberg stated, 'We had a good quarter driven by AI progress across our apps and business.' He highlighted strong momentum with Meta AI, Llama adoption, and innovative AI-powered glasses, showcasing the company's commitment to integrating AI into its core services.
Emarketer analyst Jasmine Enberg noted, 'The miss in its user metric, daily active people, is concerning, as Meta will need to squeeze more revenue out of its existing users as growth slows,' but she sees potential for this through improved ad effectiveness as a result of AI enhancements.
Meta's financial performance showed significant growth, with a 35% increase in earnings leading to $15.69 billion, or $6.03 per share, compared to the same period last year. Revenue grew by 19% to $40.59 billion, exceeding analysts' expectations.
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