Meta earnings: Stock spikes after better-than-expected revenue, buyback announcement
$Meta Platforms(META.US$ Q4 FY22:
• Daily active people +5% Y/Y to 2.96B.
• Revenue -4% Y/Y to $32.2B ($0.5B beat).
• Revenue +2% Y/Y fx neutral.
• Operating margin 20% (-17pp Y/Y).
• FCF margin 16% (-21pp Y/Y).
• EPS $1.76 ($0.48 miss).
Q1 FY23 guidance:
• Revenue ~$27.3B (in-line).
• Daily active people +5% Y/Y to 2.96B.
• Revenue -4% Y/Y to $32.2B ($0.5B beat).
• Revenue +2% Y/Y fx neutral.
• Operating margin 20% (-17pp Y/Y).
• FCF margin 16% (-21pp Y/Y).
• EPS $1.76 ($0.48 miss).
Q1 FY23 guidance:
• Revenue ~$27.3B (in-line).
The company's stock bumped about 14% in after-hours trading.
Good headline numbers aside, there's a lot to question about Meta's results today, as its metaverse division Reality Labs clocked a larger-than-expected loss of -$4.28 billion, more than $200 million more than Wall Street expected.
Good headline numbers aside, there's a lot to question about Meta's results today, as its metaverse division Reality Labs clocked a larger-than-expected loss of -$4.28 billion, more than $200 million more than Wall Street expected.
Perhaps more than surpassing revenue expectations, Meta has successfully cut costs.
"We anticipate our full-year 2023 total expenses will be in the range of $89-95 billion, lowered from our prior outlook of $94-$100 billion due to slower anticipated growth in payroll expenses and cost of revenue," Meta CFO Susan Li said in a statement.
The company's in hot pursuit of efficiency, and appears to have been ruthless in its cost-cutting efforts.
"We anticipate our full-year 2023 total expenses will be in the range of $89-95 billion, lowered from our prior outlook of $94-$100 billion due to slower anticipated growth in payroll expenses and cost of revenue," Meta CFO Susan Li said in a statement.
The company's in hot pursuit of efficiency, and appears to have been ruthless in its cost-cutting efforts.
Meta's got a lot of moving parts
Still, on the face of it, these numbers offer up a better-than-expected close out to 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 company battled macroeconomic headwinds and a slow ad market.
All in all, 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. Meta's proposed acquisition of Within, which makes popular VR app Supernatural, has been in the works since October 2021. However, they're not out of the woods yet. The FTC, going forward, could appeal and will likely continue to scrutinize Meta's future deals under Chair Lina Khan.
Still, on the face of it, these numbers offer up a better-than-expected close out to 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 company battled macroeconomic headwinds and a slow ad market.
All in all, 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. Meta's proposed acquisition of Within, which makes popular VR app Supernatural, has been in the works since October 2021. However, they're not out of the woods yet. The FTC, going forward, could appeal and will likely continue to scrutinize Meta's future deals under Chair Lina Khan.
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