Meta Revenue Grows 11% In Q2 As Company Touts Investments In Threads And AI

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Meta’s revenue beat estimates in the second quarter, rising by 11% to $32 billion, as the company also touted investments in its Twitter rival, Threads, as well as in new AI products

The company also gave a positive outlook for the third quarter, with revenue in the range of $32 billion to $34.5 billion.

Meta said that total costs and expenses grew 10% to $22.6 billion, with legal expenses of $1.87 billion recorded during the quarter and $780 million in restructuring charges, following mass layoffs last year.Meta CEO Mark Zuckerberg said in a statement that they “continue to see strong engagement across our apps and we have the most exciting roadmap I’ve seen in a while.” He cited Threads and AI, as well as Reels, Llama 2 and the launch of Quest 3 in the fall.

The company said that it expected full-year capital expenditures to be in the range of $27 billion to $30 billion, lowered from its prior estimates. Meta said that the reduced forecast is due to cost savings, especially on non-AI servers, as well as shifts in capital expenditures into 2024 due to delays in projects and equipment deliveries.

 

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