Improvements in AI-driven feeds and video recommendations have led to an 8% rise in time spent on Facebook and a 6% increase on Instagram this year, according to Meta CEO Mark Zuckerberg in the company's latest quarterly earnings report.

In the report, Zuckerberg also stated that Meta AI has reached over 500 million monthly active users across its apps. Additionally, over a million advertisers used Meta's generative AI tools in the past month to create more than 15 million ads, which has led to a 7% increase in conversions for businesses using these tools. 

Meta's quarterly financials also exceeded Wall Street's expectations. The company reported a third-quarter profit of $6.03 per share, outpacing analysts' forecasts of $5.25, according to a recent report by Reuters. Revenue reached $40.59 billion, slightly ahead of the $40.29 billion forecast.

The company kept costs in check, with total expenses at $23.2 billion and capital expenditures at $9.2 billion, leading Meta to revise its full-year expense outlook to between $96 billion and $98 billion, further adds the Reuters report. However, Meta cautioned that it expects infrastructure costs to rise sharply in 2024 due to its expanded data systems.

Meta's user base across its platforms continued to grow as well. Daily active people (DAP)—those engaging daily with any Meta apps—rose 5% to 3.29 billion, while monthly active people (MAP) increased 6% to 3.96 billion.

Meta's positive earnings report aligns with broader trends in digital advertising, as companies like Alphabet and Snap also reported gains due to AI-driven ad tools. With the US holiday season approaching, analysts expect increased ad spending, which could further boost Meta's revenue.