Meta Platforms, the parent company of Facebook and Instagram, has reported impressive fourth-quarter earnings, sending its stock soaring in after-hours trading. The company exceeded analysts’ expectations, announcing both robust financial results and plans to issue its inaugural dividend.
For the quarter ending in December, Meta Platforms revealed earnings of $5.33 per share on sales totaling $40.1 billion. This surpassed analysts’ projections of $4.82 per share in earnings on $39.1 billion in sales, according to FactSet. The company experienced a 25% year-over-year increase in sales and a remarkable 203% surge in earnings.
Moreover, Meta Platforms announced its intention to introduce a dividend of 50 cents per share of common stock, payable on March 26 to shareholders as of February 22.
Looking ahead, Meta projected sales between $34.5 billion and $37 billion for the current quarter, exceeding analysts’ expectations of $33.9 billion in sales for the March quarter, according to FactSet. In response to these promising results, Meta’s stock surged over 14% in after-hours trading to $450.42.
Meta CEO Mark Zuckerberg expressed satisfaction with the company’s performance, 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.”
Key financial metrics for the quarter include a 3% year-over-year growth in monthly active users for Facebook, reaching 3.07 billion users. Digital advertising sales remained the primary revenue driver for Meta Platforms, with ad sales totaling $38.7 billion for the quarter, marking a 24% increase from the previous year.
Additionally, Meta’s Reality Labs division, focused on the metaverse, achieved a significant milestone by surpassing $1 billion in quarterly revenue for the first time. However, the division reported a loss of $4.6 billion, contributing to the company’s overall losses from its metaverse initiatives.
On the other hand, Meta’s Family of Apps, including Facebook, Instagram, WhatsApp, Reels, and Threads, generated $21 billion in income for the quarter, compared to $10.7 billion in the fourth quarter of 2022.
Despite the company’s success, Meta experienced a workforce reduction, ending 2023 with 67,317 employees, a 22% decrease from the beginning of the year, as part of its efficiency measures.
Meta Platforms stock has shown strong performance, gaining 14% since the start of the year, in addition to last year’s impressive surge of 194%. With a market capitalization exceeding $1 trillion in January, Meta Platforms remains a prominent player in the tech industry and a top growth stock on various financial indices.
