Meta: tech company behind Facebook & Instagram reports highest operating margin in two years, says Zuckerberg
Meta CEO Mark Zuckerberg has said that the company's profits have swelled after a volatile few years, exceeding the predictions of Wall Street
Meta CEO Mark Zuckerberg has announced that the company has experienced its "highest operating margins in two years" as the Facebook and Instagram owner continued its "year of efficiency" strategy.
The technology and social media giant posted Q3 revenue gains of more than $34billion. This marked a 23% increase year-on-year and it outpaced the projected revenue gains of $33.5bn. The net income profits also more than doubled year-on-year, now sitting at $11.6bn.
Meta's success comes after the company announced in March 2023 that more than 10,000 job roles were to be cut as Zuckerberg made plans for a "year of efficiency" after a disappointing performance in 2022. Expenses since 2022 Q3 have lowered by 7%, while advertsing revenue increased in the same period.
The number of people active on Meta's "family of apps" has also risen by around 7%. 3.96bn people used sites and apps such as Facebook, Instagram, Whatsapp and Messenger.
The Meta-owned Threads app, which was launched as a competitor to Elon Musk's X (formerly Twitter), is said to currently have 100 million monthly active users. Zuckerberg said of the app: “I thought for a long time there should be a billion-person public conversation app that is a bit more positive." He added that he believed Threads could occupy that space if “we keep this up for a few years".
The news of booming profits has been welcomed by the market. Shares in the company jumped by 4% upon the announcement.
It comes after Meta was sued by more than 40 US states for the impact social media sites such as Facebook and Instagram have on young people's mental health. The lawsuit alleged that Meta purposefully designs features to make children become addicted to social media sites such as Instagram, while also alleging that it collects the data of children under the age of 13 without parental consent, in violation of federal law.
The complaint reads: “Meta has harnessed powerful and unprecedented technologies to entice, engage, and ultimately ensnare youth and teens. Its motive is profit, and in seeking to maximise its financial gains, Meta has repeatedly misled the public about the substantial dangers of its social media platforms. It has concealed the ways in which these platforms exploit and manipulate its most vulnerable consumers: teenagers and children.”
Net worth of Musk and Zuckerberg
According to Forbes, Musk’s net worth is $223.3b, making him the richest man in the world. Meanwhile Zuckerberg’s net worth stands at $100b as of October 26, making him the ninth richest man in the world.
In the ever-evolving world of social media, 2023 has brought about some significant shifts and noteworthy trends. Social platforms have continued to connect people, spread ideas, and drive conversations worldwide. Here's a look at the current social media landscape based on data compiled by various sources.
How many active users are there for X, Facebook and other platforms?
X: As of 2023, the social media platform X boasts approximately 556 million active monthly users, according to data compiled by Exploding Topics. This marks a substantial user base, indicating a growing influence and engagement on the platform.
Facebook: Facebook remains a dominant force in the social media arena. According to Data Reportal's findings from April 2023, the platform claims a staggering 2.989 billion monthly active users. A whopping 2.037 billion people use Facebook every day, and 68% of its monthly active users log in daily.
Mastodon: Mastodon has also been in the spotlight, particularly due to Elon Musk's significant involvement. As of October 2, Mastodon has had over 8.12 million users. However, the platform witnessed a significant jump from 3.5 million to 4.9 million users in just over two weeks following Musk's acquisition of Twitter on October 27.
In August, Threads' user activity deteriorated even further. The platform currently stands at 10.3 million daily active users, which represents a significant drop of over 79% since its peak.
Instagram: Boasting over 2.35 billion monthly active users, Instagram ranks as the fourth most popular social media platform globally in terms of monthly active users. Furthermore, it's estimated that Instagram will exceed 2.5 billion users by the end of 2023. A remarkable 47.84% of the world's 4.18 billion smartphone users access Instagram every month, underlining its widespread appeal.
Bluesky: Another X's competitor, the up-and-coming social platform has been generating buzz and anticipation. According to analytics by Appfigures, Bluesky just hit 2 million app downloads as of September 29, 2023. However, access to Bluesky is currently only available to users who receive an invite, as the site undergoes rigorous testing. As of now, Bluesky has not provided a specific timeline for when it plans to make the site public.