"The company's net Q3 income was $2.71 billion - an 83% YOY decrease. No, it won't be declaring bankruptcy by 2026. The stark statistic is the result of a one-time charge of $15.93 billion, related to the recent implementation of the One Big Beautiful Bill Act. Without this charge, Meta would have seen a $2.71 billion YOY increase in net income, rather than a nearly $13 billion decrease."
"A significant part of Meta's (would-be) growth came from serving more ads and charging more for those ads. Revenue rose 26% YOY to $51.24 billion. Price per ad went up 10% YOY due to increased demand from advertisers, CTO Susan Li told investors during Wednesday's Q3 earnings call. "This was partially offset by impression growth, particularly from lower monetizing regions and services," Li said. Ad impressions increased 14% YOY, while the number of people who used a Meta app every day ticked up 8% YOY."
"Meta is continuing to roll out Lattice, a unified model launched in 2023 to predict ad performance. The AI model now ranks about 100 fewer ads in recommendation models than it did at the time of its launch, homing in on the ones that drive the best performance. Meta attributes Lattice's success to the consolidation of smaller, more specialized models into a larger model with more generalized learnings."
Meta reported Q3 net income of $2.71 billion, reflecting an 83% year-over-year decrease caused by a $15.93 billion one-time charge tied to the One Big Beautiful Bill Act. Excluding the charge, net income would have risen $2.71 billion year over year. Total revenue increased 26% to $51.24 billion. Price per ad rose 10% while ad impressions grew 14% and daily users increased 8%. Meta is rolling out Lattice, a unified ad-performance model that ranks about 100 fewer ads and consolidates smaller models, producing roughly a 3% increase in conversions. CEO Mark Zuckerberg emphasized a goal of personal superintelligence within years to a decade.
Read at AdExchanger
Unable to calculate read time
Collection
[
|
...
]