And whereas it’s nonetheless spending huge on VR, issues are additionally beginning to look somewhat extra rosy on that entrance as properly.

First off, on customers. Fb added one other 19 million month-to-month lively customers in Q3, taking it to three.049 billion actives.

As you may see in these charts, just about all of Fb’s progress is coming from the “Asia Pacific” and “Remainder of the World” segments, with the platform seeing vital progress in India and Indonesia, particularly, consistent with native connectivity enhancements.

The regarding half right here is that Meta misplaced customers as soon as once more in Europe, and gained solely 1,000,000 in North America, that are its two greatest markets, by a great distance, by way of income per consumer.

That tempers these positive aspects to some extent. Besides, they do level to future potential, and of all social platforms, Fb might be the most probably to have the assets to capitalize on such developments.

Fb’s day by day lively customers additionally rose by 21 million, with extra customers coming again to the app to examine in on the most recent updates.

That, largely, has been pushed by Meta’s push to combine extra AI-based content material suggestions, primarily through Reels, which are actually being proven in additional locations throughout Fb and Instagram. Following TikTok’s lead, Meta has progressively expanded its use of broader content material suggestions, from past the folks and profiles that you just comply with, which is driving will increase in time spent inside its apps.

Which has additionally led to extra advert publicity, with general advert impressions rising by a large 31% year-over-year.

And with Threads additionally gaining traction, it’ll be fascinating to see what impression that has on Meta’s general utilization stats, and finally, advert publicity.

For context, Meta’s “Household of Apps” (customers throughout Fb, Instagram, WhatsApp, Messenger, and Threads) is now closing in on 4 billion month-to-month actives.

For context, the inhabitants of your complete planet is round 8 billion, with 1.4 billion folks residing in China, the place Fb’s apps aren’t (technically) out there. 

For all of the prognostications of Fb’s decline, it’s nonetheless seemingly holding agency, and whereas I wish to see the common time spent per consumer figures, and the way they’ve modified over time (I think that Fb utilization has fluctuated considerably), it’s fascinating to see Fb’s continued progress, even in markets the place it needs to be near peak consciousness.

By way of income, Meta’s outcomes had been even higher, bringing in $34.15 billion for Q3, a rise of 23% year-over-year.

As you may see on this chart, Meta’s subsequent finest quarterly outcome was in This fall 2021, which elements within the vacation rush, and on condition that this outcome has are available Q3, analysts view this as a strong indicator of the corporate’s potential for future success.

Meta additionally upped its steering for This fall, which despatched Meta shares up 5% in after hours buying and selling, although it has additionally warned that macroeconomic circumstances (i.e. international conflicts, regional disputes/bans) might impression its outcomes.

One other key component in Meta’s numbers is price discount, which has been a big concern for analysts of late, because it sinks an increasing number of cash into its metaverse venture. Meta really reported a 7% YoY lower in prices in Q3, largely because of layoffs performed earlier within the 12 months, which are actually full.

Although Actuality Labs, its VR division, continues to weigh heavy on the underside line.

As you may see on this itemizing, VR headset gross sales slipped decrease once more, with Actuality Labs bringing in $210 million in income, which is primarily by means of Quest unit gross sales.

Meta’s set to make a much bigger push right here, with its new Quest 3 headset getting good critiques, whereas the following iteration of its Ray Ban Tales glasses are additionally wowing early customers. And with the capability to reside stream for Fb and IG immediately from the machine, I do suppose that there’s going to be extra curiosity there, as Meta appears to glean extra speedy worth from its VR/AR bets.

Meta’s complete prices and bills for the quarter got here in at $20.40 billion, with Actuality Labs alone costing $3.7 billion. That signifies that Meta’s nearly positively going to finest the $14 billion loss it posted final 12 months for its VR improvement final 12 months.

There’s lots to love about Meta’s outcomes, with the primary takeaway being that it’s now received its advert enterprise again on monitor once more, after the impacts of Apple’s iOS 14 privateness replace, and the assorted regulatory shifts in Europe. Meta’s additionally seemingly benefited from lowered advert spending on X, amid issues round the way it’s altering below Elon Musk, with entrepreneurs then reverting more cash to Fb and IG as an alternative.

That appears like a optimistic development for the longer term, and as famous, with Threads additionally seemingly taking at the very least a few of X’s thunder, Meta does appear properly positioned, even with its VR improvement prices nonetheless rising.

Enthusiasm across the Quest 3 additionally bodes properly for the corporate, whereas the most recent Ray Ban Tales glasses additionally current a clearer image of what its transfer into AR wearables could appear to be. And with established manufacturing and distribution processes, and a a lot cheaper price level for its blended actuality unit than Apple, the broader market could now be seeing extra of Zuck’s broader metaverse imaginative and prescient, and the place issues are progressively headed within the VR house.

When he posted that one image of the metaverse final 12 months, together with his avatar in entrance of a line drawing of an Eiffel Tower duplicate, Meta shares dipped, however issues are actually wanting up once more, as readability settles into Meta’s varied tasks.

There’s nonetheless a option to go, and you’ll guess that there’ll be many extra questions in This fall as to the place Meta’s $16 billion (or extra) of annual funding into VR is definitely going. However it’s more and more wanting prefer it’ll be capable to present a extra viable pitch on this entrance, whereas it additionally continues to herald income from its major social adverts enterprise.