Facebook hits 2bn daily active users in Q4 as Meta declares a ‘year of efficiency’ for 2023

The parent company of Facebook, Meta, has reported its Q4 and full-year earnings. While the company continued on a downward slope for the fourth consecutive quarter in revenue, it maintained a growth trend for uptakes as Facebook hit 2 billion daily active users (DAUs).

In the quarter that ended 31 December 2022, Meta posted US$32.1 billion (A$45 billion) in revenue, a decrease of 4% year-over-year (YoY). The result sat on the higher end of Meta’s projection in Q3.

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The net income was US$4.6 billion (A$6.4 billion) in this quarter, a significant decline of 55% YoY compared to US$10.2 billion (A$14.3 billion) in 2021.

In the fourth quarter and full year 2022 respectively, the restructuring costs were US$4.2 billion (A$5.8 billion) and US$4.6 billion (A$6.4 billion).

Meta’s main source of revenue, advertising, dipped across most regions YoY. Among the $31.2 billion (A$43.7 billion) ad revenue in Q4, those in APAC accounted for $5.9 billion (A$8.2 billion).

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The full-year revenue for 2022 was US$116 billion (A$162 billion), with a 1% decline YoY. Net income sat at US$23.2 billion (A$32.5 billion), a decrease of 41% YoY.

However, on the positive side, daily active people (DAP) across the family of apps is nudging the 3 billion mark, an increase of 5% YoY. As mentioned, Facebook’s DAUs hit the 2 billion mark in the latest quarter, an increase of 4% YoY.

Its founder and CEO, Mark Zuckerberg, said 2023 will be the “year of efficiency” for the company, with a focus on “becoming a stronger and more nimble organisation”.

Zuckerberg. Source: Wikimedia Commons

The company headcount was 86,482 at the end of the quarter, including the majority of around 11,000 employees who were laid off in November 2022.

Reality Labs, which is Meta’s VR and AR-focused division, posted a bigger loss of US$4.2 billion (A$5.8 billion) in Q4. The company projected the division’s operating losses in 2023 to grow significantly YoY in Q3.

Meta’s new chief financial officer Susan Li, who moved into the role as David Wehner became the chief strategy officer, projected Q1 2023 revenue to be in the range of US$26-28.5 billion (A$36-39.9 billion).

The full-year revenue outlook for 2023 has been adjusted to be US$89-95 billion (A$124-133) billion, “due to slower anticipated growth in payroll expenses and cost of revenue”.

Meta’s share surged after hours but traded at $148.9 (A$208.8) the previous day. The market capitalisation sat at US$401.51 billion (A$563.12 billion) on 1 February.