Meta reported its third-quarter financial results following the market close on Wednesday, kicking off Big Tech's earnings season. The social media giant posted an all-time high revenue of $64 billion, surpassing analyst expectations of $63.3 billion and climbing from $51.2 billion during the same period last year. Shares rose more than 3% following the announcement.
Despite the revenue beat, GAAP earnings per share took a significant hit, coming in at $3.83 compared to the anticipated $3.56. The decrease was driven by legal fees stemming from a teen mental health settlement. Meta noted that GAAP earnings per share would have reached $7.40 without the legal charges.
To help finance its ongoing artificial intelligence buildout, Meta announced a 2-for-1 stock split that gives each owner of Class A Meta shares a non-voting Class C share. The structure allows the company to continue to finance its AI buildout while ensuring CEO Mark Zuckerberg retains overall control of the company.
