Meta Platforms(META.US) Q4 2023 Earnings Conference

By / / Meta Platforms

The following is a summary of the Meta Platforms, Inc. (META) Q4 2023 Earnings Call Transcript:

Financial Performance:

  • Meta Platforms reported Q4 2023 total revenue of $40.1 billion, reflecting a 25% year-over-year increase.
  • The company’s net income was $14 billion or $5.33 per share.
  • Total expenses of $23.7 billion signaled a decrease of 8% from the previous year, resulting in an operating income of $16.4 billion (41% operating margin).
  • The record-high Family of Apps total revenue was $133 billion and ad revenue was $131.9 billion for FY 2023, each increasing by 16% year-over-year.
  • Significant investment was made in servers, data centers, and network infrastructure, causing a capital expenditure of $7.9 billion.
  • Meta ended the year with $65.4 billion in cash and marketable securities, besides an $18.4 billion debt.
  • The platform launched a dividend program to return capital to shareholders, with the primary method being a $6.3 billion share repurchase in Q4, along with an announcement of a $50 billion increase in stock repurchase authorization.

Business Progress:

  • Meta’s focus on AI and the metaverse reflects in its operational strategy, with significant investments in research, development, and open-source software.
  • The successful launch and growth of key products like the Quest line, Threads, Ray-Ban Meta smart glasses, and Horizon have given Meta’s portfolio a substantial boost.
  • Their AI assistant initiative shows promise with ongoing deployments across WhatsApp, Messenger, and Instagram, with plans for a wider rollout later in the year.
  • Expansion into generative AI and investment in more interactive on-platform ad experiences are pivotal in increasing user engagement.
  • With plans to increase hiring in priority areas, investment in Reality Labs, and AI infrastructure, Meta expects higher infrastructure-related costs and payroll expenses in 2024.
  • Meta is testing and developing AI chats with businesses and consumer-side AI capabilities to help foster compelling content across its apps. These initiatives are expected to bring long-term revenue growth.
  • The company predicts total revenue for Q1 2024 to fall within $34.5 billion to $37 billion, assuming foreign currency to be neutral to year-over-year total. revenue growth based on current exchange rates.
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