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Facebook-parent Meta posts declining sales for 3rd consecutive quarter

Facebook-parent Meta posts declining sales for the third consecutive quarter: Revenue dropped 4% to $32.17B as Mark Zuckerberg hints at MORE layoffs – calling 2023 ‘the year of efficiency’

  • Meta on Wednesday reported falling revenue, but beat Wall Street expectations
  • Zuckerberg hinted at further layoffs, proclaiming 2023 the ‘Year of Efficiency’ 
  • Shares jumped 17% as company announced $40B increase in stock buybacks
  • Facebook’s daily active users increased 4% topping 2 billion for the first time 

Meta has reported its third quarter in a row of declining sales — but the damage was less than Wall Street had expected, sending shares of the company higher.

Facebook’s parent company on Wednesday reported revenue of $32.17 billion for the quarter that ended in December, down 4% from a year earlier but higher than the $31.53 billion analysts expected, according to Refinitiv data. 

Profits dropped 55% on the year, at $4.65 billion for the quarter, and the company said it took a $4.2 billion hit in restructuring costs associated with mass layoffs announced in November.   

In a statement, Zuckerberg hinted at further cost-cutting measures to come, proclaiming 2023 as the ‘Year of Efficiency’ for Meta. 

Shares of Meta jumped more than 17% percent in extended trading, as the company announced a $40 billion increase in stock buybacks. 

Meta has reported its third quarter in a row of declining sales — but the damage was less than Wall Street had expected, sending shares of the company higher

Daily active users across Meta’s platforms, another key figure, outpaced expectations, coming in at 2.96 billion on average for December, a 5% increase from a year ago. 

‘Our community continues to grow and I’m pleased with the strong engagement across our apps,’ said Zuckerberg. 

The report showed that Facebook’s daily active users rose 4% from last year and hit 2 billion for the first time, which Zuckerberg touted as a ‘milestone’.  

‘The progress we’re making on our AI discovery engine and Reels are major drivers of this,’ he added. 

‘Beyond this, our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization,’ said Zuckerberg.

In November, Meta said it would cut 13% of its workforce, or more than 11,000 employees, as it grapples with a weak advertising market and mounting costs. 

Shares of Meta rallied more than 20% in January, outperforming a broader market rally. 

But the Facebook-parent’s stock is still down more than 50% from a year ago, following a punishing sell-off in 2022 that wiped more than $600 billion off its market valuation. 

Developing story, more to follow. 

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