$META earnings

Meta exceeded expectations in its fourth-quarter earnings report, revealing a surge in its stock price by 14% in after-hours trading. The key financial figures include earnings per share of $5.33, surpassing the expected $4.96, and revenue totaling $40.1 billion, beating the anticipated $39.18 billion. Key user metrics also exceeded predictions, with 2.11 billion daily active users and 3.07 billion monthly active users. The average revenue per user stood at $13.12, surpassing the expected $12.81.

The robust financial performance is attributed to a 25% increase in revenue from the previous year, reaching $32.2 billion. The growth rate is the highest since mid-2021, reflecting a rebound in the online advertising market. Additionally, Meta's cost-cutting measures contributed to an 8% year-over-year decrease in expenses, totaling $23.73 billion, and a doubled operating margin of 41%. Net income tripled to $14 billion, translating to $5.33 per share, compared to $4.65 billion or $1.76 per share in the previous year.

In a historic move, Meta announced its first-ever dividend payment of 50 cents per share on March 26, following a significant increase in cash and equivalents to $65.4 billion at the end of 2023. The company also unveiled a $50 billion share buyback plan.

Meta's strong performance is part of a broader trend, with its stock nearly tripling in 2023 and hitting a record high in January. As of the earnings report, Meta's market capitalization stands at almost $1.2 trillion.

Sales in Meta's Reality Labs unit surpassed $1 billion in the quarter, although the virtual reality unit recorded losses of $4.65 billion. Looking ahead, Meta expects first-quarter sales in the range of $34.5 billion to $37 billion, surpassing analyst expectations of $33.8 billion. Projected expenses for 2024 are estimated to be between $94 billion and $99 billion. CEO Mark Zuckerberg expressed satisfaction with the quarter's results, emphasizing progress in advancing AI and the metaverse.