Meta Q3 FY23

Meta Q3 FY23:
• Daily active people +7% Y/Y to 3.14B.
• Revenue +23% Y/Y to $34.1B ($0.7B beat).
• Operating margin 40% (+20pp Y/Y).
• FCF margin 40% (+39pp Y/Y).
• EPS $4.39 ($0.76 beat).

Q4 FY23 guidance:
• Revenue ~$36.5B-$40.0B (~$0.7B beat).

- Revenue growth doubled YoY EPS earnings growth 168% Operating margin doubled YoY

- Advertising revenue exceeded expectations by 24% year-on-year growth rate doubled sequentially

- Social Media App Revenue Up 24% Meta-Universe Revenue Dropped 26% Beyond Estimates, But Losses Were Lower Than Expected

- Facebook's daily and monthly users continue to hit record highs in tandem

- This year's expense guidance was lowered by $2 billion, and next year's expenses may increase by more than 10%, partly due to a big increase in Metaverse losses

- Capital expenditures guidance for this year was lowered by $1 billion, while next year's expenditures may increase by 20%, partly due to investments in AI servers.

- Zuckerberg says he's proud of his company's work to advance AI and XR space