Jakarta – Meta Platforms Inc, the parent company of Facebook, has achieved positive performance with a net profit of US$11.58 billion or approximately Rp184 trillion (at an exchange rate of Rp15,910) in the third quarter of 2023. The revenue increased by 23% annually (YoY) to US$34.15 billion or around US$27.71 billion in the same quarter of the previous year. This increase in profit surpassed analysts’ estimates of around US$33.58 billion.
Senior Investing Analyst Jesse Cohen stated that Meta Platforms Inc’s profit increase is the most profitable in recent years. “Overall, this is an extraordinary achievement with Meta reporting its most profitable quarter in recent years,” said Cohen, as quoted by CNN on Sunday, October 29, 2023.
It is worth noting that Meta’s profit surge is due to the growth of its three social media platforms, namely Instagram, Facebook, and WhatsApp, which increased by 3% YoY to over US$3 billion. This positive sentiment has boosted advertising business on these three platforms, resulting in a 31% increase and allowing Meta to regain company profits.
Interestingly, prior to the surge in Meta’s profit, the company experienced a decline due to a decrease in advertising and an increase in operational costs. One of the contributing factors was a US$3.99 billion ambitious virtual metaverse project. This condition caused Meta’s stock to plummet by 70% during 2022. Additionally, the company’s net profit dropped by 55% from US$10.29 billion to US$3.67 billion. (*)