Meta reports better-than-expected results for their Q2! Thanks to AI?

Meta, the company behind Facebook, just shared that they've earned more money in the second quarter than what people thought they would. Instead of the predicted $2.91 per share, they earned $2.98! 

And instead of making $31.12 billion, they brought in $32 billion.

So why are they doing so well? It seems like digital advertising, which is where Meta makes most of its money, is doing really good right now.

One important data point that often flies under the radar, but is crucial to understanding Meta's trajectory, is its active user base. The company reported Daily Active Users (DAUs) of 2.06 billion and Monthly Active Users (MAUs) of 3.03 billion, both outpacing analyst expectations. Furthermore, their Average Revenue Per User (ARPU) was a robust $10.63, exceeding the forecasted $10.22.

A key highlight of this report is Meta's revenue growth, which jumped 11% compared to the previous year. This is a significant milestone for the company, as it represents the first double-digit growth since 2021. It's particularly noteworthy in light of previous revenue declines, caused by a stumbling economy and changes in Apple's iOS privacy rules, which put a damper on ad targeting abilities.

Looking forward, Meta's projections for the third quarter are equally encouraging. The company anticipates revenue ranging from $32 billion to $34.5 billion, which indicates a minimum growth of 15% year over year, due to planned investments in data centers and artificial intelligence.