Meta Revenue Tops Expectations In Q4 2023

Meta Revenue Tops Expectations In Q4 2023

Meta Revenue Tops Expectations In Q4 2023

Meta Revenue Tops Expectations In Q4 2023

Surging past market expectations, Meta Platforms Inc. (META) witnessed an impressive stock rally on Friday, catapulting over 20% following the release of stellar earnings, robust guidance, and the announcement of strategic initiatives for shareholder returns.

This extraordinary surge translated into a substantial addition of nearly $200 billion to Meta’s market capitalization, establishing a new stock market record as per Bloomberg data. On Friday, Meta’s shares were trading around $475, marking a remarkable recovery from the stock’s 2022 lows when it plummeted to as low as $90.

Currently boasting a market capitalization exceeding $1.2 trillion, the company reported adjusted earnings per share (EPS) of $5.33 on revenue amounting to $40.11 billion for the fourth quarter. Analysts, relying on Bloomberg consensus data, had anticipated adjusted EPS of $4.94 on revenue of $39.01 billion. In comparison, the company reported revenue of $32.2 billion in the same quarter the previous year.

In addition to the stellar financial results, Meta announced a substantial increase in its stock buyback authorization by $50 billion and the initiation of a quarterly dividend of $0.50 per share. Looking forward, the company anticipates revenue in the current quarter to range between $34.6 billion and $37 billion, surpassing analysts’ predictions set at $33.6 billion.

Meta also reported 2.11 billion Facebook daily active users

Highlighting the robust performance in Q4 2023, Meta’s advertising revenue reached an impressive $38.7 billion, surpassing expectations set at $37.8 billion. The company also reported a substantial daily active user base of 2.11 billion on Facebook, exceeding the Wall Street estimate of 2.07 billion.

While ad impressions saw a significant 21% rise compared to the previous year, the average price per ad experienced a slight dip of 2%.

However, Meta’s Reality Labs division remains a financial challenge, tasked with realizing Mark Zuckerberg’s metaverse vision. Despite incurring a loss of $4.65 billion in the fourth quarter, up from $4.3 billion the previous year, the division exceeded revenue expectations, reaching $1.07 billion compared to the anticipated $812 million.

The launch of Apple’s Vision Pro headset has the potential to fuel consumer interest in AR/VR headsets, potentially impacting Meta’s Quest line positively.

Despite the financial burden of Reality Labs, investor attention has shifted towards increased investments in generative AI. In a January Instagram Reels post, Zuckerberg unveiled the company’s long-term strategy of developing general artificial intelligence and making it open source.

Generative AI, broadly defined as AI capable of thinking and learning like a human across various domains, is becoming a pivotal focus for Meta amid expectations of total expenses reaching $94 billion-$99 billion in 2024. The company acknowledged that payroll costs would rise as it expands its workforce in higher-cost, technical roles, particularly in the field of AI.

Meta also disclosed restructuring charges of $3.45 billion in 2023, including severance and facilities consolidation. The company’s headcount as of December 31, 2023, stood at 67,317, reflecting a 22% reduction compared to the prior year.

Over the past 12 months, the Company’s market performance has been exceptional, with shares surging by 121%, outperforming major tech players such as Apple (AAPL), Google (GOOG, GOOGL), Microsoft (MSFT), and Amazon (AMZN).

In January, Meta once again surpassed the $1 trillion market capitalization threshold, solidifying its position as a dynamic force in the evolving tech landscape.

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Jason Stone

Jason Stone is a serial entrepreneur with multiple 7 figure business ventures across various verticals of web and marketing. He is widely known by over 7 million people around the world as @Millionaire_Mentor on Instagram. Jason utilizes his experience and passion as a motivator, mentor, teacher, and social media influencer to help others create success. Jason Stone is an accomplished Senior Executive, Consultant, and Thought Leader with more than 20 years of success across the engineering, e-commerce, social media, internet, marketing, advertising, technology, automotive, blockchain, franchising, and health and wellness industries. He is an early-stage startup tech investor/advisor to over a dozen companies. Leveraging extensive experience creating go-to-market strategies and viral marketing, he is a valuable advisor for an organization experiencing growth or launching new products. His broad areas of expertise include business development, mechanical engineering, global strategy, email marketing, digital marketing, automation, blockchain, organizational leadership, and growth hacking. t
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