Meta earnings Q4 2022

Would You like a feature Interview?

All Interviews are 100% FREE of Charge

meta Shares surged in extended trading Wednesday after the company reported better-than-expected fourth-quarter earnings and announced a $40 billion share buyback.

• Earnings: $1.76 per share
• Earnings: $31.53 billion expected to reach $32.17 billion, according to Refinitiv

The company also reported restructuring charges for its App Family segment and Reality Labs unit of $3.76 billion and $440 million, respectively, in the fourth quarter of 2022. These costs make it difficult to compare his earnings per share for the company to analyst estimates of his $2.22. per share.

Other important numbers are:

• Daily Active User (DAU): 2 billion vs. 1.99 billion expected, according to StreetAccount
• Monthly Active User (MAU): 2.96 billion vs. 2.98 billion expected, according to StreetAccount
• Average Revenue Per User (ARPU): $10.86 vs $10.63 Estimates According to StreetAccount

Fourth quarter sales declined 4% year-over-year, marking the third consecutive quarter of sales declines. The company’s costs and spending rose 22% year over year to his $25.8 billion.

Meta said it expects first-quarter revenue to be between $26 billion and $28.5 billion. Analysts had expected sales of $27.1 billion, according to Refinitv. In the first quarter of 2021, he had $27.9 billion in sales. The company could end its streak of year-over-year declines if the meta hits the upper end of its guidance range.

Meta CEO Mark Zuckerberg said in a statement, “Our community continues to grow and we are pleased with the strong engagement across our apps. Year of Efficiency” and is focused on becoming a stronger, more agile organization.”

According to Meta, as of December 31, 2022, the number of employees increased by 20% year-on-year to 86,482. That number includes most of his 11,000-plus workers, which Meta said it would furlough last November.

The company expects total costs in 2023 to be in the range of $89 billion to $95 billion, which is lower than its previous guidance of $94 billion to $100 billion for the full year. Meta attributes the adjustment to “expected slower growth in labor and revenue costs.”

Meta also said it would lower its capital expenditure estimate for this year to a range of $30 billion to $33 billion, and from $34 billion to $37 billion. One reason, he said, is that the company has spent less on building data centers. Instead, Meta says it’s moving to a different kind of data center architecture that aims to be more cost-effective while serving as the backbone for various artificial intelligence projects.

Meta said Wednesday it has approved a $40 billion increase to its share buyback plan. The company bought back $27.9 billion worth of its stock last year.

Earlier this week, Snap reported its fourth-quarter results, but missed sales and sent its stock price plummeting. While Snap is much smaller than Meta, it faces the same challenges, including slowing online ad spend, increased competition from TikTok, and a weakened targeted advertising system with Apple’s 2021 iOS privacy update.

alphabet When Amazon We wrap up earnings reports from major online advertising platforms on Thursday. Pinterest next week.

Meta stocks plunged more than 60% last year as Zuckerberg struggled to sell Wall Street on his plans to steer the company toward the still-undeveloped world of the Metaverse. The metaverse, which includes virtual and augmented reality technologies, could be the next major way people interact, he said.

Investors fear the company is focusing too much on futuristic initiatives, even as its core advertising business struggles to regain growth. Meta’s Reality Labs division, home of the Metaverse ambition, saw him lose $4.28 billion in the fourth quarter, bringing its total operating loss for the year to $13.72 billion.

Meta said last year that “Reality Labs’ operating loss in 2023 will increase significantly year-over-year.”

look: Snap shares plummet due to sluggish earnings