Facebook-parent Meta beats revenue estimates, forecasts additional spending

(Reuters) -Meta Platforms beat expectations for third-quarter revenue on Wednesday, while warning of additional spending and regulatory pressures ahead for 2024.

The social media giant said it expected 2024 total expenses in the range of $94 billion-99 billion, higher than estimates, according to LSEG data.

The company also trimmed its 2023 total expenses view to $87 billion to $89 billion from its earlier forecast range of $88 billion to $91 billion.

Shares of Meta rose 4% in extended trading.

Meta has been climbing back from a bruising 2022, buoyed by the hype around emerging AI technology, a recovery in digital advertising and an aggressive austerity drive in which it shed around 21,000 employees since last autumn.

The company’s shares have more than doubled in value this year.

Revenue rose 23% to $34.15 billion for the quarter ended September. Analysts were expecting revenue of $33.56 billion, according to LSEG data.

The company also handily beat profit expectations.

Meta saw 7% growth in daily active people (DAP) – a metric it uses to track unique users who used any one of its apps such as Facebook (NASDAQ:), Instagram, Messenger or WhatsApp in a day. DAP grew 7% in the preceding June quarter.

Facebook’s daily active users grew 5%, while ad impressions across Meta’s apps grew 31%.