Meta, formerly known as Facebook, has reported better-than-expected results for its fourth-quarter earnings, causing a 15% surge in its shares during extended trading. The tech giant also announced its first-ever dividend payment, marking a significant milestone for the company.
The company’s earnings stood at $5.33 per share, surpassing the $4.96 per share expected by LSEG. Additionally, Meta’s revenue reached $40.1 billion, exceeding the $39.18 billion anticipated by LSEG. The positive performance was further reflected in its daily active users (DAUs) and monthly active users (MAUs), which came in at 2.11 billion and 3.07 billion, respectively, surpassing the StreetAccount’s expectations.
Meta’s revenue witnessed a remarkable 25% increase from the previous year, reaching $32.2 billion, marking the highest growth rate since mid-2021. Simultaneously, the company managed to reduce its expenses by 8% year-over-year, amounting to $23.73 billion, while doubling its operating margin to 41%, indicating successful cost-cutting measures.
The company’s net income also experienced significant growth, more than tripling to $14 billion, or $5.33 per share, from $4.65 billion, or $1.76 per share, in the previous year. In light of its robust financial performance, Meta announced a dividend of 50 cents per share, scheduled for payment on March 26. The company’s strong cash position, with $65.4 billion in cash and equivalents at the end of the year, enabled it to also unveil a $50 billion share buyback plan.
Meta’s share price surge during after-hours trading marks a continuation of its rally from 2023, where the stock nearly tripled in value. The company’s market cap has now reached almost $1.2 trillion, further solidifying its position as a tech powerhouse.
Meta’s Reality Labs unit also achieved a significant milestone, surpassing $1 billion in sales for the quarter. However, the virtual reality unit recorded $4.65 billion in losses, indicating the complexities and challenges of emerging technologies.
Looking ahead, Meta provided guidance for the first quarter, expecting sales in the range of $34.5 billion to $37 billion, surpassing analysts’ expectations of $33.8 billion. Additionally, the company projected expenses in 2024 to be in the range of $94 billion, reflecting its continued investment in growth and innovation.
Meta’s CEO, Mark Zuckerberg, expressed optimism about the company’s future, stating, ‘We had a good quarter as our community and business continue to grow. We’ve made a lot of progress on our vision for advancing AI and the metaverse.’
