Meta reports a remarkable 200% year-over-year growth in profit to $14 billion for the three months ending in December, surpassing Wall Street predictions. Sales also surged by 25% to over $40 billion during the same period.
The tech giant, formerly known as Facebook, announced its inaugural cash dividend of $0.50 per share, along with a $50 billion share buyback, contributing to a more than 14% surge in Meta shares in after-hours trading. The report marks the success of Meta’s “year of efficiency” strategy, involving cost-cutting measures, including layoffs and spending reductions, leading to a significant turnaround in revenue and share price.
Meta CEO Mark Zuckerberg expressed gratitude for the company’s success in 2023, highlighting growth in communities and businesses, following the completion of data center initiatives and employee layoffs. The report also reveals a 6% year-over-year growth in @Meta daily active users to over 2.1 billion.
However, Meta CFO Susan Li indicated that the company will no longer report Facebook user numbers, emphasizing the focus on the larger family of apps. Meta plans to report only daily active people across its family of apps, reaching an average of 3.19 billion in December. The report also highlights the growth of Threads, Meta’s rival to Twitter, with 130 million monthly active users.
Additionally, a 2% year-over-year increase in Meta’s average price per ad in the December quarter is noted, indicating positive momentum in the core advertising business. Meta anticipates a 20% year-over-year revenue jump in the first quarter of 2024, with projections ranging from $34.5 billion to $37 billion on the low end.
Source: CNN
