Meta earnings: Stock spikes after better-than-expected revenue
Meta (META) reported its Q4 2022 earnings today after the bell, and the Facebook parent beat key revenue expectations amid a difficult ad market.
Here’s what the key numbers looked like, as compared to analysts’ estimates compiled by Bloomberg.
Q4 Revenue – $32.17 billion actual versus $31.65 billion expected
Advertising Revenue – $31.25 billion actual versus $30.86 billion expected
Adjusted Earnings Per Share (EPS) – $1.76 actual versus $2.26 expected
Facebook Daily Active Users (DAUs) – 2 billion actual versus 1.98 billion expected
Family of Apps Daily Active Users (DAUs) – 2.96 billion actual versus 2.92 billion expected
Reality Labs Operating Loss – -$4.28 billion actual versus -$3.99 billion expected
The company’s stock bumped about 14% in after-hours trading.
These numbers close out what’s been an exceptionally difficult year for Meta, which also owns Instagram and WhatsApp. In 2022, the company’s stock declined approximately 63% as the social media giant battled growing competition from TikTok, high inflation, and a muted digital advertising market.
Rival Snap (SNAP) reported earnings yesterday, barely meeting Wall Street’s expectations on revenue and DAUs and hinted at a likely revenue decline in Q1 2023. Snap’s stock plunged about 13% in the aftermath of the report.
Meta Platforms Chief Executive Mark Zuckerberg leaves federal court after attending the Facebook parent company’s defense of its acquisition of virtual reality app developer Within Inc., in San Jose, California, U.S. December 20, 2022. REUTERS/Laure Andrillon
In today’s earnings report, Meta notably announced a $40 billion stock buyback. It’s a strong move, given that the company laid off 11,000 workers in November and more jobs are reportedly on the table even now. Moreover, the company’s C-suite re-shuffled substantially through last year, with longtime COO Sheryl Sandberg officially leaving the company in September.
It’s been a solid day for Meta, which reportedly won its case against the Federal Trade Commission (FTC) this morning, getting the green light to buy VR developer Within, which makes fitness app Supernatural. The FTC has the option to appeal and, going forward, will likely continue to scrutinize Meta’s future deals under Chair Lina Khan.
Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.
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