In its first-quarter earnings report, Meta Platforms Inc., the parent company of Facebook and Instagram, announced a substantial increase in profit. The company reported a 120% year-over-year surge in profits, reaching $12.37 billion for the January-March period. This translates to earnings per share of $4.71, significantly higher than the $2.20 per share reported in the same quarter last year.
Meta’s revenue also experienced a significant increase of 27%, rising to $36.46 billion from $28.65 billion in the previous year’s corresponding period. This growth was primarily driven by higher advertising revenue, with the average price of ads increasing by 6% on Meta’s platforms. Analysts had anticipated earnings per share of $4.32 and revenue of $36.14 billion, according to a FactSet poll. However, the company’s revenue guidance for the current quarter fell short of analyst expectations.
Meta projected revenue between $36.5 billion and $39 billion for the second quarter. This range falls below the $38.25 billion revenue estimate provided by analysts. The lower-than-expected revenue guidance triggered a sharp drop in Meta’s shares by $53.40 or 10.8%, to $440.10 in after-hours trading.
