Meta’s Q3 Profit Surges 35%, Driven By Ad Revenue Growth

Meta Platforms Inc. reported a 35% surge in third-quarter profit, propelled by strong ad revenue and its push to integrate artificial intelligence (AI), Barbara Ortutay reported, for the Associated Press.

Nearly all of Meta’s revenue comes from advertising, so a slight decline in user numbers dampened an otherwise strong quarter. I Photo: Anthony Quintano Flickr

The parent company of Instagram and Facebook cautioned that it expects infrastructure spending to significantly increase next year as it invests heavily in AI development. Nearly all of Meta’s revenue comes from advertising, so a slight decline in user numbers dampened an otherwise strong quarter.

Meta’s “family daily active people” — users who signed into at least one of its apps (Facebook, Messenger, Instagram, WhatsApp, and Threads) daily — averaged 3.29 billion in September, slightly below the 3.31 billion analysts had forecast.

“The shortfall in the daily active user metric is a concern, as Meta will need to generate more revenue from its current user base as growth slows,” said Emarketer analyst Jasmine Enberg.

However, she added that Meta is well-positioned, as its AI-driven tools boost engagement by showing users content they like and making ads, particularly on Reels, more effective.

For the quarter ending Sept. 30, Meta earned $15.69 billion, or $6.03 per share, up from $11.58 billion, or $4.39 per share, the previous year.