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Facebook owner Meta on Wednesday surpassed market expectations and posted 11% growth in revenue to $32 billion. Its net income stood at $7.79 billion or $2.98 per share, rising from $6.69 billion, or $2.46 a share.

“We had a good quarter,” Meta CEO Mark Zuckerberg said in a statement. “We continue to see strong engagement across our apps and we have the most exciting roadmap I’ve seen in a while, with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall.”

Meta had seen declining revenue in the previous three quarters owing to stringest iOS advertising targeting measures.

The company forecasts third-quarter (July-September) revenue in the range of $32 billion to $34.5 billion.

Meta has also revised its capital expenditure forecast for 2023 in the range of $27 billion to $30 billion, which is lower than its previous estimate of $30 billion to $33 billion.

“The reduced forecast is due to both cost savings, particularly on non-AI servers, as well as shifts in capital expenditures into 2024 from delays in projects and equipment deliveries rather than a reduction in overall investment plans,” the company said.

Meta says Capex is expected to pickup next year as it prepares to invest more in AI products.

During the second quarter, the Reality Labs division, which is responsible for developing the metaverse, reported sales of $276 million and a loss of $3.7 billion.

Meta experienced a 34% year-over-year increase in ad impressions and during the same period, the price per ad decreased by 16%.

Shares of Meta jumped as much as 4% in after hours trading as Instagram, Facebook, WhatsApp, and Threads faired better than Wallstreet estimates.