And whereas it’s nonetheless spending large on VR, issues are additionally beginning to look slightly 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 possibly can see in these charts, nearly all of Fb’s progress is coming from the “Asia Pacific” and “Remainder of the World” segments, with the platform seeing important progress in India and Indonesia, particularly, in keeping 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 factors to some extent. Besides, they do level to future potential, and of all social platforms, Fb might be the almost certainly to have the sources to capitalize on such tendencies.

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

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

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

And with Threads additionally gaining traction, it’ll be attention-grabbing to see what impression that has on Meta’s total utilization stats, and ultimately, 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 the whole planet is round 8 billion, with 1.4 billion folks residing in China, the place Fb’s apps will not be (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 typical time spent per consumer figures, and the way they’ve modified over time (I believe that Fb utilization has fluctuated considerably), it’s attention-grabbing to see Fb’s continued progress, even in markets the place it must be near peak consciousness.

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

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

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

One other key component in Meta’s numbers is value discount, which has been a big concern for analysts of late, because it sinks increasingly more cash into its metaverse mission. Meta really reported a 7% YoY lower in prices in Q3, largely resulting from 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 possibly can 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 opinions, whereas the subsequent iteration of its Ray Ban Tales glasses are additionally wowing early customers. And with the capability to reside stream for Fb and IG straight from the machine, I do suppose that there’s going to be extra curiosity there, as Meta appears to glean extra fast worth from its VR/AR bets.

Meta’s whole 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 virtually undoubtedly going to finest the $14 billion loss it posted final 12 months for its VR growth final 12 months.

There’s so much to love about Meta’s outcomes, with the principle takeaway being that it’s now bought 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 possible benefited from diminished advert spending on X, amid considerations round the way it’s altering beneath Elon Musk, with entrepreneurs then reverting extra money to Fb and IG as an alternative.

That appears like a optimistic pattern for the long run, and as famous, with Threads additionally seemingly taking a minimum of a few of X’s thunder, Meta does appear properly positioned, even with its VR growth 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 regularly 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 reproduction, Meta shares dipped, however issues are actually trying up once more, as readability settles into Meta’s numerous tasks.

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