Meta stock price pops after hours on better than expected earnings
Earnings: $1.76 per share
Revenue: $32.17 billion vs $31.53 billion expected
Daily Active Users (DAUs): 2 billion vs 1.99 billion expected
Monthly Active Users (MAUs): 2.96 billion vs 2.98 billion expected
Average Revenue per User (ARPU): $10.86 vs $10.63 expected
Revenue in the fourth quarter fell 4% from a year earlier, marking a third straight quarter of declining sales. The company’s cost and expenses ballooned 22% year-over-year to $25.8 billion.
Meta said it expects revenue in the first quarter of between $26 billion and $28.5 billion. Analysts were expecting sales of $27.1 billion, according to Refinitv. Sales in the first quarter of 2021 came in at $27.9 billion. Should Meta reach the high end of its guidance range, the company could end its streak of year-over-year declines.
“Our community continues to grow and I’m pleased with the strong engagement across our apps,” Meta CEO Mark Zuckerberg said in a statement. “Our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization.”
In November, Meta said it would lay off over 11,000 employees, or 13% of the workforce, as part of the company’s plans to reduce costs.
The company expects that its total expenses in 2023 will be in the range of $89-95 billion, which is lower than its prior outlook of $94-100 billion for the year. Meta attributed the adjustment “to slower anticipated growth in payroll expenses and cost of revenue.”
Meta said on Wednesday that it’s authorized a $40 billion increase to its stock repurchase plan. The company bought back $27.9 billion worth of its shares last year.
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