The Meta platform has been responsible for the rise of social media over the last two decades. The company owns and operates some of the most popular communication tools in the world, including Facebook, Instagram, Threads, and WhatsApp.
Recently, Meta posted record-breaking revenue numbers in Q3 2023, bringing in a total of $34.15 billion in revenue, representing a 23% increase year-over-year. The company’s net income also reached $11.58 billion, up 164% year-over-year from $4.4 billion.
Meta Net Income Highest Ever In 13 Years at $11.5 Billion
Meta’s quarterly net income reached an all-time high in the last 13 years bringing in a total of $11.58 billion. The Q3 financial report is up 164% from $4.4 billion year over year.
The surge could be due to a number of factors, including decreasing expenses, fewer employees, and an increase in ad impressions over its Family of Apps. Overall, total costs and expenses totaled $20.40 billion in 2023, a decrease of 7 percent year-over-year. The company also decreased its headcount by 24 percent compared to last year. That’s because a substantial majority of the company’s employees impacted by the layoffs are no longer included in the reported headcount.
Ad impressions also rose dramatically last quarter, increasing 31 percent year-over-year while the average price per ad dropped by 6 percent, making advertising more accessible to a wider group of customers.
This is significant because nearly 95 percent of Meta’s revenues come from advertisers’ willingness to spend on the platform.
According to the company’s guidance and forward looking commentary, Meta expects its Q4 2023 revenue to range between $36.5 to $40 billion.
Meta Ranks Among Top Internet Companies Ranked By Revenue
In 2023, Meta remains among the top 10 biggest companies in the world by market capitalization. Currently, the company sits sixth on the list, just ahead of Tesla and below NVIDIA, which is an artificial intelligence company. Meta platform’s market capitalization in 2023 has surpassed $800 billion USD.
As of this writing, Meta is considered the third largest internet company in the world.
In terms of workforce, Amazon, Alphabet, and Meta have the biggest employee list.
Investment analyst Nick Raffoul spoke about the company; “Meta’s ability to leverage attention and convert time spent on the platform into dollars in the pockets of advertisers led to a record-breaking performance in Q3. With ad impressions on the rise and the cost of advertising continually decreasing, Meta remains one of the few platforms that allows advertisers to reach nearly 4 billion active people with the click of a button.”
