Those gains combined with Meta’s aggressive cuts and its promise of an efficient 2023 drove stock prices up around 15% in trading after-hours. Facebook’s user numbers also managed to inch up in the last quarter with the platform hitting 1.98 billion daily active users and 2.96 billion monthly active users as of September 2022. The company beat revenue expectations in the final quarter of 2022, bringing in $32.2 billion. In its Q4 earnings call on Wednesday, Meta CEO Mark Zuckerberg described the company’s near future priorities and plans, painting a picture of a tech giant that’s driving toward leaning down and speeding up. Facebook, Meta’s flagship social network, now has more than 2 billion daily users, up more than 70 million from a year ago.Meta is all-in on becoming a lean, mean, cash-printing machine. Those cuts came during a quarter that was otherwise an improvement for the company. Meta cut 11,000 jobs, or 13% of the workforce, in November in its first-ever major layoff.
The company faced a decline in advertiser demand due to weakness in the broader economy as well as a change in privacy rules on Apple Inc.’s iPhone, which made it harder for Meta to offer targeted ads. Meta, whose shares have gained 27% so far this year, is on the rebound after the worst year for its stock in history. “Advertising demand hasn’t really improved, but it hasn’t gotten significantly worse either,” Spiegel said on a conference call. Snap said it expected sales to decline in the current period, with CEO Evan Spiegel remarking that the ad slump appears to be bottoming out. Snap Inc., the parent of rival social-media app Snapchat, gave a less upbeat outlook on Tuesday, sending its shares down 10%. Analysts are predicting that Meta will return to growth following the current period. Even so, the total beat analysts’ estimates, and Meta projected revenue of $26 billion to $28.5 billion for the first quarter, in line with an average projection of $27.3 billion. But the company also pointed to some industries, including health and travel, where businesses are spending more.įourth-quarter sales fell 4% to $32.2 billion, the third straight period of declines. Meta is still suffering from a slump in demand for digital ads, which make up the vast majority of its sales, especially from clients in finance and technology. Zuckerberg said the company is using AI to improve the way it recommends content - a strategy for making the platform more attractive to users and advertisers alike. “There’s going to be some more that we can do to improve our productivity, speed and cost structure.” “We’re working on flattening our org structure and removing some layers of middle management to make decisions faster, as well as deploying AI tools to help our engineers be more productive,” Zuckerberg said on an earnings call with investors. Zuckerberg, who has spent the past year promising a faraway future in a digital world called the metaverse, was more focused on immediate problems, such as sending users the most relevant videos at the right time, and finally making significant revenue from messaging products. Meta is the best performer in the S&P 500 Index since the stock’s recent November 3 closing low of $88.91, and is poised to more than double in value since then. If the gains hold, the move would be the biggest intraday jump since July 2013. The stock rose in trading after New York markets closed on Wednesday.
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