Facebook shows signs of revival after slump

Facebook's business appears to be reviving after months of decline.

Meta, the parent company of Facebook, Instagram and WhatsApp, said revenue grew 3% in the first three months of 2023, compared with the same period a year earlier.

It also said more than three billion people used at least one of its apps daily on average last month, up 5% from March a year ago.

Shares in the firm shot up more than 10% in after-hours trade.

The gains come amid a wider recovery for the firm's shares, as some investors buy into chief executive Mark Zuckerberg's campaign to cut costs and refocus the tech giant.

He has declared 2023 a "year of efficiency", announcing thousands of job cuts in recent months.

These moves came after the firm struggled with revenue declines last year in the face of increased competition from TikTok, privacy changes at Apple and a general slump in advertising spending.

Debra Aho Williamson, principal analyst at Insider Intelligence, said this year was off to a "stronger than expected start" and that the firm's forecast for coming months suggested it may "be starting to come out of the woods".

"In this economic environment - and after the disaster that was 2022 - 3% revenue growth [compared with last year] is an accomplishment," she said.

But she added that the firm "can't afford to sit still".

Financial markets have been closely watching for results from the big tech companies, which have a big impact on movements on the major US stock indexes.

Microsoft and Alphabet, owner of Google, also reported better than expected results earlier this week.

Meta said it brought in revenue of $28.6bn over the three months ended in March - its first quarterly growth in nearly a year.

It reported profits of $5.7bn for the quarter, down 24% compared with a year ago.