Meta reports Q4 earnings after market close today. Revenue was $40.1B vs. $39.18B expected. EPS was $5.33 vs. $4.96 expected. Q4 revenue grew 25% YoY and expenses actually declined 8%(!!) due to the 22% headcount reduction YoY. Their current operating margin is 41%. Given that Reality Labs Operating Losses were $4.65B for Q4, the 41% operating margin is super impressive. These metrics are actually quite similar to Q3 results. 2022 was a difficult year for Meta with no revenue growth. In 2023, Meta gradually recovered and had a top line growth rate at 20+% for Q3/Q4. It’s probably hard to sustain this level of growth rate given its already enormous size starting Q3 this year. But we will see. Meta also announced they will start paying $0.5 quarterly dividends and buying back $50B worth of stock.
Extremely impressive results.