Meta Unveils Strong Q4 Revenue, Announces $40B Stock Buyback

On Wednesday, Meta reported a strong fourth-quarter 2022 revenue and announced a mega stock buyback, pushing its share price higher.

The company ended the February 01 session by gaining 2.79% to $153.12 per share. In the upcoming stretch, it is forecasted to rise further by 20.16% to $184.00 apiece.

In Q4 2022, Meta said its EPS was $1.76, lower than the market consensus of $2.26. Yet, it is above the prior $1.64 data.

Meanwhile, the entity’s sales revenue jumped to $32.17 billion, surpassing the analysts’ projections of $31.53 billion. This latest reading exceeded the former result of $27.71 billion.

Also, Meta stated that its structuring charges for the Family of Apps segment and Reality Labs unit were $3.76 billion and $440.00 million, respectively.

Besides, its headcount increased by 20.00% YoY to 86,482 as of December 31 last year. This number includes a huge chunk of the more than 11,000 employees laid off in November.

Furthermore, the firm’s Daily Active Users (DAUs), Monthly Active Users (MAUs), and Average Revenue per User (ARPU) were 2.00 billion, 2.96 billion, and $10.86, respectively.

For Q1 2023, executives expect the revenue to come between $26.00 billion and $28.50 billion, compared to analysts’ forecasts of $27.10 billion. Should Meta hit the high end of its outlook, it could end its streak of annual drops.

Zuckerberg Announced a Stock Buyback in Meta

During the earnings call, CEO Mark Zuckerberg authorized a $40.00 billion increase to the firm’s stock repurchase program.

In 2022, Meta bought back around $28.00 billion in stock. Yet, analysts believe that this recent move appeared to ease investors’ worries about its metaverse spending.

Based on statistics, the company began buying back shares in 2027 but pumped up quarterly buybacks above $10.00 billion in 2021. The move was made as growth from the coronavirus pandemic helped double the net income.

According to shareholders, Meta has yet to start paying them a dividend.