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Meta earnings reveal cash flow drops 91% - while Zuckerberg writes op-eds about superintelligence
Fortune • • general
Key Points:
- Meta reported second-quarter earnings of $15.85 billion, or $6.18 per share, down 14% from the previous year, with revenue rising 28% to $60.8 billion, slightly above analyst expectations.
- Daily active users across Meta’s apps grew 3% to 3.6 billion, with Instagram hitting 2 billion daily users and Threads reaching 500 million monthly active users.
- CEO Mark Zuckerberg highlighted AI as a key driver of growth and innovation, emphasizing its role in current products and future opportunities, despite public skepticism around social media companies.
- Meta’s expenses surged 55% year-over-year to $42.03 billion, including $2.4 billion in legal costs and $1.18 billion in severance related to layoffs, contributing to a 91% drop in free cash flow to $784 million.
- The company forecasted third-quarter revenue between $61 billion and $64 billion, below analyst expectations, and its shares fell 4.2% in after-hours trading following the earnings release.
