Business · Updated 22 Oct, 08:50 am IST
Meta beats revenue expectations but profits hit by large legal penalties
Why it matters for readers: It matters because it explains why a big tech company can grow its business yet report much lower profit due to legal rulings.
- Meta beat investor expectations for third-quarter revenue while reporting $9.86 billion in profits for July–September.1
- Profits were almost 50% below expectations due to a $9.9 billion charge related to a multistate settlement and other legal penalties.1
- A New Mexico judge ordered Meta to pay $25 billion after a jury found the company deceived users in a Cambridge Analytica-related case.1
- Meta said it is investing aggressively in artificial intelligence and expects improvements in Reality Labs' performance over time.1
- CFO Susan Li and CEO Mark Zuckerberg warned of ongoing legal and regulatory matters, including youth-related trials in the United States.1
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