Facebook-parent Meta reported better-than-expected earnings for the first quarter (Q1) of 2023 as revenue rose 3% to $28.65 billion compared with $27.9 billion from the year-ago period. The revenue figures beat the Street expectations of $27.65 billion, according to Refinitiv.

However, the company’s net profit dropped significantly by 24% to $5.7 billion from $7.5 billion in Q1 2022.

“We had a good quarter and our community continues to grow,” said Mark Zuckerberg, Meta founder and CEO. “Our AI work is driving good results across our apps and business. We’re also becoming more ecient so we can build better products faster and put ourselves in a stronger position to deliver our long term vision.”

Meta Platforms Inc forecast second-quarter revenue above market expectations as the digital advertising market shifts to tried and tested platforms such as Facebook and Instagram during economic uncertainties, sending its shares 9% higher in extended trading.

The owner of the world’s largest social media platforms has benefited from a shift in marketing budgets to proven platforms such as Facebook, helping it stay resilient in a downturn that has hit growth at rivals such as Snap Inc.

Meta, whose stock has risen about 74% so far this year, said it will lay off 10,000 staff this year, making it the first Big Tech company to announce a second round of layoffs after its first mass layoff in the fall where it cut 11,000 jobs.

The company expects current-quarter revenue between $29.5 billion and $32 billion, compared with analysts’ estimates of $29.53 billion, according to Refinitiv data.

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