Meta Platforms Q1 2023 Financial Overview
Meta Platforms (NASDAQ: META) reported a Q1 2023 revenue of $56.31 billion, reflecting a 33% year-over-year increase, and an adjusted EPS of $7.31, surpassing analyst expectations. The company announced a significant increase in capital expenditures (capex), raising its forecast by $10 billion to a range of $125 billion to $145 billion through 2026, largely due to rising component and data center costs. Consequently, Meta’s share price dropped by 8.5% following the earnings report, with the stock currently down about 7% year-to-date.
For the quarter, advertising revenue rose by 33% to $55 billion, driven by a 19% increase in ad impressions and a 12% rise in average ad prices. While its Reality Labs division, responsible for the metaverse, saw a revenue decrease of 2% year-over-year, total operating income from social media applications grew by 24% to $26.89 billion. Despite increased expenses of 35% totaling $33.4 billion, Meta generated $12.4 billion in free cash flow and anticipates Q2 revenue between $58 billion and $61 billion, a projected 22% to 28% growth year-over-year.
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