Facebook (now known as Meta) released its fourth-quarter results on Wednesday, and Wall Street is loving what Mark Zuckerberg has to say despite a significant miss in earnings for the quarter. Although the company suffered its third consecutive quarter of declining revenue and missed its profit target by a considerable margin, Zuckerberg is trumpeting 2023 as the “year of efficiency,” and Facebook shares have jumped almost 20 percent in response.
Yahoo Finance reports that Facebook (now known as Meta) has released its fourth-quarter results, announcing a $40 billion stock repurchase program at the same time. The social media giant beat analyst projections of $31.53 billion in revenue by reporting $32.17 billion in sales, but it reported $1.76 per share in profit, a significant miss from analyst expectations of $2.26 per share.
Facebook also reported above-expected daily active users (DAUs) of 2 billion and monthly active users (MAUs) of 2.96 billion. The business’s average revenue per user (ARPU) came in at $10.86, which was higher than anticipated.
Nevertheless, despite the impressive user numbers, Facebook’s fourth-quarter revenue decreased by four percent from the prior year, marking the third consecutive quarter of declining sales. Additionally, costs for the business increased 22 percent year over year to $25.8 billion. “Our management theme for 2023 is the ‘Year of Efficiency,’ and we’re focused on becoming a stronger and more agile organization,” explained CEO Mark Zuckerberg, while acknowledging the difficulties the company was facing.
The company now employs 86,482 people, a 20 percent increase from the previous year. This number includes many of the over 11,000 employees that the company had planned to ay off in late 2022. Compared to its previous forecast of $94 billion to $100 billion, Facebook now projects total expenses for 2023 to be in the $89 billion to $95 billion range. Additionally, the company has decreased its projected capital expenditures for the year to $30 to $33 billion.
With a loss of $4.28 billion in the fourth quarter, Facebook’s Reality Labs division, which focuses on creating the metaverse, significantly increased the company’s operating loss for the year to $13.72 billion. Despite the setbacks, Facebook is still committed to its metaverse goals and thinks that augmented and virtual reality technologies could usher in a new era of social interaction.
Facebook reported strong results despite a decline in online advertising spending and more competition from TikTok. The weakened targeting advertising system brought on by Apple’s 2021 iOS privacy update has impacted companies in the online advertising space. This week, Alphabet and Amazon will report their earnings from the major online ad platforms, and Pinterest will follow the following week. Snap has already reported gloomy earnings and forecasted a 10 percent revenue shortfall in the next quarter.
Facebook shares are up almost 20 percent in pre-market trading on Thursday. Despite the business’s difficulties, Facebook has rallied investors through its dedication to its metaverse aspirations and focus on becoming a more effective organization. The management strategy for the company in 2023, “The Year of Efficiency,” suggests that Facebook is committed to overcoming market difficulties and sustaining growth.
Read more at Yahoo Finance here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan
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