The company's stock sell-off accelerated during the earnings call when CEO Mark Zuckerberg discussed investments in areas like glasses and mixed reality, where the company doesn't currently make money. Meta's advertising revenue, which makes up the majority of its business, increased by 27% to $35.64 billion. However, the company's Reality Labs unit, responsible for the development of the metaverse, reported sales of $440 million for the quarter and $3.85 billion in losses. The company's headcount declined by 10% in the first quarter from a year earlier to 69,329, and capital expenditures for 2024 are expected to be $35 billion to $40 billion.
Key takeaways:
- Meta shares plunged more than 18% in extended trading on Wednesday after the company issued a light forecast, despite better-than-expected first-quarter results.
- Revenue increased 27% from the same period a year earlier, with net income more than doubling to $12.37 billion.
- Meta expects sales in the second quarter of $36.5 billion to $39 billion, which is below analysts' average estimate of $38.3 billion.
- The company's Reality Labs unit, which is developing the metaverse, reported sales of $440 million for the quarter and $3.85 billion in losses, bringing total losses since the end of 2020 to over $45 billion.