AP – Meta Platforms Inc tripled its profit and posted sharply higher revenue in the final quarter of 2023, boosted by a rebound in digital advertising as well cost cutting and layoffs in what Chief Executive Officer (CEO) Mark Zuckerberg called the “year of efficiency”.
“The company can talk all it wants to about artificial intelligence (AI) and the metaverse, but it’s still a social media company that gets nearly all its revenue from advertising, and advertisers still clearly love Meta,” said long-time tech analyst Debra Aho Williamson.
The Menlo Park, California-based parent company of Facebook and Instagram said on Thursday that it earned USD14 billion, or USD5.33 per share, in the October-December period. That’s up from USD4.65 billion, or USD1.76 per share, a year earlier.
Revenue grew 25 per cent to USD40.11 billion from USD32.17 billion. Analysts, on average, were expecting earnings of USD4.82 per share on revenue USD39.1 billion, according to FactSet Research.
“This was a pivotal year for our company. We increased our operating discipline, delivered strong execution across our product priorities, and improved advertising performance for the businesses who rely on our services,” Meta said in a statement.
Meta also grew the user base on its apps, with monthly active users on its family of apps – Facebook, Instagram, Messenger and WhatsApp – reaching 3.98 billion as of the end of the year, up six per cent from 2022.
Facebook had 3.07 billion monthly active users as of December 31, an increase of three per cent year-over year. The company does not break out the user base of its other platforms.
The blowout results come a day after Zuckerberg testified before the Senate along with other social media CEOs about the dangers their platforms pose to children.
For the current quarter, Meta is forecasting revenue of USD34.5 billion to USD37 billion, above Wall Street’s expectations. Analysts are projecting revenue of USD33.9 billion for the first quarter.
