Meta has reported 11 per cent topline revenue growth for the second quarter of this year, its growth accelerating from the four per cent it reported in the first quarter.
The company also saw its ad impressions jump by 34 per cent year-over-year while its average price-per-ad declined by 16 per cent.
The company’s overall ad revenue increased by almost 12 per cent year-over-year to almost US$31.5 billion (AU$46.4 billion). For the six months ending in June, the company reported US$59.6 billion (AU$87.8 billion) in ad revenue, up eight per cent.
However, its Reality Labs division — the area of the business busy building the metaverse — saw its losses grow again by a third to US$3.7 billion (AU$5.5 billion).
Susan Li, Meta’s chief financial officer said that while the business was continuing to invest in its “most compelling opportunities, including artificial intelligence and the metaverse” investors should expect the company’s expenses to grow despite its recent mass layoffs.
A larger infrastructure footprint would bump costs, as would the business’ evolution towards “higher-cost technical roles” within its workforce.
Reality Labs, meanwhile, would see operating losses “increase meaningfully year-over-year.” Expect that to go down like a lead balloon with shareholders who have previously protested about CEO Mark Zuckerberg’s continued investment in the project.
Closer to home, Naomi Shepherd, Meta’s director global business group for ANZ said that Australia was keeping pace with global results.
“We’ve had a strong quarter and delivered on a solid roadmap including Llama 2, Threads, Reels, new AI advertising tools, and the launch of Quest 3 coming later this year. Our Family of Apps continue to grow, and we’re pleased to see consumer and business engagement in Australia track consistently with our global results. We are committed to working with our local customers to help them get the most out of our platform as our offerings and tools continue to evolve,” she said.
Google and Microsoft reported their Q2 earnings yesterday, with both companies seeing growth in ad revenue — 3.3 per cent and three per cent, respectively. While not as exciting as Meta’s growth, might this round of earnings be enough to convince the market that advertising is back on track?