Meta shares plunged more than 11% in extended trading on Wednesday after the company issued a light forecast, which overshadowed better-than-expec

Meta shares plunge on weak revenue guidance even as first-quarter results top estimates

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2024-04-24 21:00:16

Meta shares plunged more than 11% in extended trading on Wednesday after the company issued a light forecast, which overshadowed better-than-expected first-quarter results.

Revenue increased 27% from $28.65 billion in the same period a year earlier, the fastest rate of expansion for any quarter since 2021. Net income more than doubled to $12.37 billion, or $4.71 per share, from $5.71 billion, or $2.20 per share, a year ago.

One reason for the pop in net income is that, while revenue growth accelerated, sales and marketing costs dropped 16% in the quarter from a year earlier.

Meta said it expects sales in the second quarter of $36.5 billion to $39 billion. The midpoint of the range, $37.75 billion, would represent 18% year-over-year growth and is below analysts' average estimate of $38.3 billion.

The company no longer reports daily active users and monthly active users. It now gives a figure for what it calls "family daily active people." That number was 3.24 billion for March 2024, a 7% increase from a year earlier.