The Californian group generated $ 5.7 billion in net profit from January to March (-24% year-on-year), for a turnover of $ 28.65 billion, up 3% after three consecutive quarters of decline, according to its earnings release published Wednesday.

Its stock was up about 11% in electronic trading after the close of the New York Stock Exchange.

"Meta had a better than expected start to the year. In this economic context, and after the disaster of 2022, 3% revenue growth over one year, this is an accomplishment," said Debra Aho Williamson, analyst at Insider Intelligence. "And their strong guidance for the current quarter shows that the company may be really recovering."

In 2022, the social media giant had two firsts since going public in 2012: its advertising revenue declined and Facebook lost users (before regaining some).

Meta's revenues are suffering from shrinking advertisers' budgets due to inflation, competition from TikTok and Apple's regulatory changes, which are restricting its ability to harvest user data to sell highly targeted ads.

AI, AI, AI

"Meta can't afford to rest. The group needs to finish rebuilding ad targeting after the debacle caused by Apple, convince advertisers to abandon TikTok and retain influencers," said Debra Aho Williamson.

The analyst also mentioned increased competition from Amazon and other online shopping sites that attract advertisers by allowing them to "communicate with consumers where they shop".

According to its research firm, Meta will hold 20% of the global digital advertising market in 2023, its smallest share of the pie since 2018.

Spurred by the immense popularity of TikTok, the American group has changed the way its platforms work to copy the application, from its short and entertaining videos with "Reels" to its powerful content recommendation algorithms.

Spurred by the immense popularity of TikTok, Meta has changed the way its platforms work to copy the Lionel BONAVENTURE app © / AFP / Archives

"Now, 20% of what artificial intelligence (AI) recommends on Facebook and Instagram comes from accounts you don't follow," CEO Mark Zuckerberg said on a conference call with analysts.

"Since we launched Reels, AI recommendations have led to a 24% increase in time spent on Instagram," he added, adding that these videos also bring in more revenue than before.

The leader also expressed his enthusiasm for generative AI (capable of creating content on demand in everyday language), the current darling of tech.

These new systems will allow "tens of millions of small businesses to have AI agents who respond on their behalf to customers. (...) All our products and services will be affected," he said.

Dismissals and recruitments

Like its neighbors in Silicon Vallet, Meta is therefore investing in AI, despite massive layoffs.

In February, Mark Zuckerberg, placed 2023 under the sign of "efficiency". The company, which had never launched a redundancy plan in 20 years of existence, laid off 11,000 people in November (13% of the workforce) and 10,000 in March.

An Oculus Meta Quest virtual reality headset at Mobile World Congress in Barcelona, February 28, 2023 © Josep LAGO / AFP/Archives

A third wave is due to take place in May, but "then we will resume recruitment," said Susan Li, the group's chief financial officer, including for the teams in charge of "generative AI, advertising, infrastructure and the Reality Labs branch", which designs products and services for the metaverse.

Mark Zuckerberg has confirmed that this parallel universe remains a priority for his company, while enthusiasm has waned in 2022. He mentioned a new virtual and augmented reality device for this year, "at a price affordable for many people".

Reality Labs lost nearly $4 billion in the first quarter, after net losses of $13.7 billion in 2022.

Facebook and Instagram are looking to diversify their revenue streams with "Meta Verified," a subscription starting at $12 a month, launched in March © William WEST / AFP / Archives

Facebook and Instagram are looking to diversify their sources of income with "Meta Verified", a subscription starting at $ 12 per month, launched in March to authenticate his account on these platforms and benefit from other privileges.

© 2023 AFP