• Meta beat revenue and earnings expectations in Q4, with revenue up 25% and net income more than tripling year-over-year. The company saw strength in advertising and controlled costs.
• Meta announced its first ever quarterly dividend of $0.50 per share, as well as a new $50 billion share repurchase program. This signals the company’s financial strength.
• For Q1 2023, Meta provided upbeat revenue guidance well above analyst estimates, showing confidence that advertising spending will remain healthy despite economic concerns. The company is making progress with AI initiatives.

Meta Platforms, the parent company of Facebook, saw its shares surge over 20% on Friday after reporting strong fourth quarter results. The company beat on both the top and bottom lines, issued upbeat guidance, and announced its first-ever dividend. The results and dividend signal Meta’s comeback from a difficult 2022.

Q4 Financial Results

In the fourth quarter, Meta’s revenue rose 25% to $40.1 billion, its fastest growth rate since mid-2021. This was ahead of analyst estimates of $31.8 billion. The company’s net income more than tripled to $14 billion, compared to $4.65 billion a year earlier.

Meta’s advertising business saw particular strength, as marketers ramped up spending during the holiday season. The company also kept a tight lid on costs, with operating expenses dropping 8% year-over-year. This focus on efficiency boosted Meta’s operating margin to 41%.

First Ever Dividend and Buyback

Along with the earnings beat, Meta announced a quarterly dividend of $0.50 per share. This is the first time the company has paid a dividend in its history. Meta also authorized a new $50 billion share repurchase program.

The dividend and buyback signal Meta’s financial strength and maturity as a company. Investors cheered these shareholder-friendly moves.

Upbeat 2023 Guidance

For the first quarter of 2023, Meta provided guidance well above Wall Street estimates. The company expects revenue between $34.5 billion and $37 billion, compared to analyst projections of $33.8 billion.

Meta appears confident that advertising spending will remain healthy, even in the face of a potential economic slowdown. The company is also making progress with AI initiatives that could boost ad targeting and relevance.

Conclusion

Meta’s fourth quarter results crushed expectations across the board. The earnings beat, strong guidance, and new capital return program demonstrate Meta’s comeback after a challenging 2022. With stability in the ad market and progress in AI, the company seems poised for growth in 2023. Investors cheered the results, sending Meta shares surging over 20% and adding over $200 billion to its market cap.