- Meta posted better-than-expected results for the final quarter of 2023
- The tech giant emphasized cost savings in its 2023 ‘year of efficiency’
- The company also announced its first quarterly dividend of 50 cents per share
Meta shares rose 15 percent in extended trading after the company tripled its profits and posted sharply higher sales in the final quarter of 2023.
The California-based tech giant announced that it earned $14 billion, or $5.33 per share, from October to December last year – up from $4.65 billion, or $1.76 per share, a year earlier.
Meanwhile, revenue rose 25 percent to $40.11 billion in the quarter. This was up from $32.2 billion a year earlier – the fastest growth since mid-2021 – as the online advertising market continued to recover.
CEO Mark Zuckerberg said in a statement: “We’ve had a great quarter as our community and our company continue to grow. We have made great progress on our vision of advancing AI and the metaverse.”
The company, which owns Facebook, Instagram and WhatsApp, also announced its first-ever quarterly dividend of 50 cents per share and another $50 billion in share buybacks.
Meta shares soared in extended trading after the company tripled its profits and posted sharply higher sales in the final quarter of 2023
Buybacks and dividends help increase stock prices by rewarding investors with cash simply for holding shares in the company. Meta’s first cash dividend of 50 cents per share will be paid on March 26, and on a quarterly basis going forward.
It appears that the company’s self-described ‘year of efficiency’ has paid off.
Analysts on average expected earnings of $4.82 per share on revenue of $39.1 billion, according to FactSet Research.
Meta shares rose more than 10 percent after the company tripled its profits and posted sharply higher revenue in the final quarter of 2023 (Photo: CE0 Mark Zuckerberg)
After a disastrous 2022 that saw its share price plummet, the company emphasized cost-cutting last year, laying off thousands of employees.
The company said it had 67,317 employees as of December 31, 2023, down 22 percent year-over-year.
Meta also credited advances in AI and improvements to its advertising business for its success, which is growing faster than rival Google.
Meta’s stellar results come amid reports from other tech rivals, including Amazon and Apple.
The news comes a day after Zuckerberg apologized to families who said their children had been harmed by social media during a US Senate hearing.
Meta CEO Mark Zuckerberg, whose company runs Facebook, Instagram and WhatsApp, was sworn in to testify
Bosses of social media giants Facebook, TikTok, Twitter and Snapchat are being questioned by Congress about the dangers their platforms pose to children
He appeared alongside TikTok CEO Shou Zi Chew, Discord boss Jason Citron, X chief Linda Yaccarino and Snapchat founder Evan Spiegel.
They were all questioned by Republicans about how they protect teens and children on their respective apps.
“I’m sorry for everything you’ve all been through,” Zuckerberg said. ‘It’s terrible. No one should have to experience the things your families suffered.”
Zuckerberg and Senator Marsha Blackburn got into a heated argument when the Tennessee Republican accused Facebook of facilitating sex trafficking.
Blackburn at one point accused Zuckerberg of wanting to make Meta the “leading sex trafficking site in this country.”
Senators Ted Cruz and Lindsey Graham took the opportunity to rebuke the titans of Silicon Valley, claiming they are not doing enough to protect children from pedophiles and harmful content.
Bosses insisted they are doing their utmost to protect young people from anything inappropriate, but admitted they cannot always keep up with the bills due to the size and scale of their products.