During the quarter, tech giants' meta platforms including Facebook, WhatsApp, Instagram, and Messenger saw increased user engagement and revenue across their app families. The company's quarterly revenue beat Wall Street expectations, proving the continued value of Meta's social platform. However, rising costs also affected profits. Going forward, Meta aims to carefully develop new features and experiences for billions of users around the world.
Revenue reached a record $40.1 billion for the quarter, beating Wall Street analysts' expectations. This revenue demonstrates the steady growth of Meta's family of apps, which continues to connect with billions of users around the world every day. However, changes in the mobile ecosystem and new challenges regarding macroeconomic trends may impact Meta's business in the future.
This outstanding performance marked a remarkable recovery in digital advertising revenue after the difficulties experienced in 2022. Due to this recovery momentum, Meta's net income tripled to $14 billion, which corresponds to his earnings per share of $5.33. This expansion exceeded analysts' expectations for both sales and earnings per share. The latest quarterly financial disclosures highlighted the company's recovery from last year's setbacks and reassured its strong position in the digital advertising market.
Increase users and expand platform
Meta has steadily expanded its user base across its various social media programs, reaching virtually 4 billion monthly active individuals by the end of 2023, representing 6% annual growth. Additionally, Threads, Meta's more modern social software comparable to Twitter, launched in July 2023, quickly gained traction with over 130 million monthly active users. This consumer development highlights Meta's sustained ability to attract and retain individuals across its diverse platforms, displaying a mix of short, simple sentences and slightly more complex sentences.
Future earnings forecast and dividend announcement
Considering the first three months of 2024, Meta expects revenue to be in the range of $34.5 billion to $37 billion, reflecting year-over-year growth of 20% to 29%. In a major move for investors, Meta's board reported quarterly installments of $0.50 per share payable in March 2024, with the intention to continue this practice, subject to market conditions and board approval. Additionally, the organization declared a $50 billion expansion of its offer buyback program, demonstrating solid assurance of its financial health and future potential. This revenue gauge and the declaration of consistent installments and an expanded offer buyback program give financial backers assurance for the future of Meta as the organization continues to create new items and administrations to stay connected with individuals. Masu.
Meta's stock price surge and comments from leaders
Following these impressive earnings announcements, Meta's stock price soared more than 12% in after-hours trading, setting a new record and hitting more than $443 per share. Mark Zuckerberg, Founder and CEO of Meta, expressed his satisfaction with the quarter's results and highlighted developments that will fuel the expansion of artificial brains and the Metaverse. While progress is being made on priorities such as AI assistants and virtual reality projects, much more work is needed to fully realize the vision of the engaging digital world people want to live in.
Our commitment to online safety and security
The earnings report came after Zuckerberg appeared at a Senate committee hearing on “Big Tech and the Online Child Sexual Exploitation Crisis.” During the hearing, Mr. Zuckerberg expressed his regrets to the families affected and detailed that Meta has spent more than $20 billion to implement safety and security measures across its platforms. He said Meta is investing significant resources to protect its users, especially minors, from online harm such as sexual abuse. The earnings news followed this discussion regarding Meta's efforts to curb such threats within the service.
Investing in the growth and future of the Reality Labs division
Meta's Reality Labs division, which focuses on AR/VR technology and Metaverse projects, reported a 32% increase in fourth-quarter revenue to $1.07 billion. Despite the segment's operating loss of $4.65 billion, Meta remains committed to significantly increasing investments in AR/VR product development and ecosystem expansion in 2024, and continues to capitalize on these emerging technologies. We expect operating losses to further increase as we continue to innovate and expand our services.