(Bloomberg) -- Meta Platforms Inc. surged after reporting first-quarter revenue that exceeded analysts’ estimates and signaling the beginnings of a recovery in digital advertising.
First-quarter sales rose to $28.6 billion — a return to growth after three straight quarters of declines. That compared with the $27.7 billion that analysts projected on average. Shares gained more than 8% in after-market trading.
The company said revenue in the current quarter will be as much as $32 billion, compared to the $29.5 billion average estimate.
Meta is working to move faster while cutting costs in what Chief Executive Officer Mark Zuckerberg has dubbed the “year of efficiency.” A slowdown in advertising demand over the last year forced the social media giant, which owns Facebook, Instagram and WhatsApp, to slash headcount and reduce spending, and sparked scrutiny of the billions Zuckerberg has been investing in virtual reality technology. As it pares costs, Meta is still investing in strategic areas like artificial intelligence and the metaverse.
Meta’s stock has climbed 74% this year through the close on Wednesday, recovering from the worst year on record with a 64% decline in 2022. Shares climbed as high as $231.60 in extended trading following Wednesday’s report, after closing at $209.40.
(Updates with forecast in third paragraph.)
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