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Dec 31, 2023

Meta Q4 2023 Earnings Report

Meta's Q4 2023 earnings showcased significant revenue growth and improved profitability, driven by strong performance in the Family of Apps segment and increased efficiency.

Key Takeaways

Meta reported a strong fourth quarter and full year 2023, with revenue increasing by 25% year-over-year to $40.11 billion. Net income saw substantial growth, reaching $14.02 billion, and diluted EPS increased to $5.33. The company also initiated a quarterly dividend of $0.50 per share.

Revenue increased by 25% year-over-year, reaching $40.11 billion.

Net income grew significantly to $14.02 billion, a 201% increase year-over-year.

Diluted earnings per share (EPS) increased to $5.33, up 203% year-over-year.

Meta initiated a quarterly dividend of $0.50 per share.

Total Revenue
$40.1B
Previous year: $32.2B
+24.7%
EPS
$5.33
Previous year: $1.76
+202.8%
Daily Active People
3.19B
Previous year: 2.95B
+8.1%
Facebook DAUs
2.11B
Previous year: 1.99B
+6.0%
Ad impressions increase
21%
Gross Profit
$32.5B
Previous year: $23.8B
+36.4%
Cash and Equivalents
$41.9B
Previous year: $14.7B
+185.1%
Free Cash Flow
$11.5B
Previous year: $5.47B
+110.3%
Total Assets
$230B
Previous year: $186B
+23.6%

Meta

Meta

Meta Revenue by Segment

Forward Guidance

Meta expects first quarter 2024 total revenue to be in the range of $34.5-37 billion. Full-year 2024 total expenses are expected to be in the range of $94-99 billion. Full-year 2024 capital expenditures will be in the range of $30-37 billion.

Positive Outlook

  • Expects first quarter 2024 total revenue to be in the range of $34.5-37 billion.
  • Guidance assumes foreign currency is neutral to year-over-year total revenue growth.
  • Expects higher infrastructure-related costs this year.
  • Anticipate growth in payroll expenses as we work down our current hiring underrun.
  • Expect full-year 2024 tax rate to be in the mid-teens.

Challenges Ahead

  • Expect operating losses for Reality Labs to increase meaningfully year-over-year.
  • Growth will be driven by investments in servers, including both AI and non-AI hardware, and data centers.
  • Ambitious long-term AI research and product development efforts will require growing infrastructure investments beyond this year.
  • The Federal Trade Commission is seeking to substantially modify our existing consent order.
  • Increasing legal and regulatory headwinds in the EU and the U.S. that could significantly impact our business and our financial results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income