NASDAQ$META

Meta Platforms Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$40.1B

Previous: $32.2B+24.7%
EPS (adj)

$5.33

Previous: $1.76+202.8%
Daily Active People

3.2B

Previous: 3.0B+8.1%
Ad Impressions Growth

21.0%

No prior period
Ad Price Growth

2.0%

No prior period
Capital Expenditures

-$8.29B

Previous: $9.04B-191.7%
Net Income

$14B

Previous: $4.65B+201.2%
Operating Income

$16.4B

Previous: $6.4B+156.0%
Gross Profit

$32.5B

Previous: $23.8B+36.4%
R&D Expense

$9.81B

No prior period
Stock-Based Comp

$3.42B

Previous: $3.01B+13.8%

Revenue & EPS history

Meta · Revenue · Quarterly

$40.1B

Q4 2023+24.7%vs Q4 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Meta · $34.1B total across 2 segments · Q3 2023

  • Family of Apps
    $33.9B+23.7%
  • Reality Labs
    $210M-26.3%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+1.9%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.0%

Avg return

30 days after

58%

35 / 60 earnings

Positive

+31.5%

Q2 2013

Best reaction

-28.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%-9.6%-5.5%
Q4 2025+1.2%+3.4%-3.1%
Q3 2025-2.4%-16.5%-13.8%
Q2 2025+2.3%+9.8%+6.3%
Q1 2025+4.2%+7.0%+17.9%
Q4 2024+1.6%+4.1%-1.2%
Q3 2024-4.3%-5.5%-3.2%
Q2 2024+7.5%+2.7%+12.5%
Q1 2024-11.0%-12.8%-3.6%
Q4 2023+21.7%+16.6%+28.7%
Q3 2023-7.7%-3.2%+8.2%
Q2 2023+5.9%+8.2%-3.0%
Q1 2023+14.9%+17.2%+26.3%
Q4 2022+26.7%+24.9%+24.4%
Q3 2022-28.8%-32.3%-19.0%
Q2 2022+1.0%+0.5%+1.7%
Q1 2022+13.7%+16.7%+7.8%
Q4 2021-25.5%-29.5%-37.3%
Q3 2021-2.7%-0.3%+5.1%
Q2 2021-2.6%-4.3%+1.3%
Q1 2021+8.5%+6.3%+8.3%
Q4 2020-6.0%-7.1%-8.7%
Q3 2020-1.7%-0.9%+3.8%
Q2 2020+8.7%+7.1%+25.9%
Q1 2020+11.9%+12.2%+23.1%
Q4 2019-3.8%-6.2%-11.6%
Q3 2019+1.2%+2.9%+6.5%
Q2 2019-0.8%-3.2%-12.2%
Q1 2019+5.2%+6.0%-1.5%
Q4 2018+15.6%+17.4%+12.5%
Q3 2018+6.8%+5.8%-2.4%
Q2 2018-17.9%-20.3%-18.6%
Q1 2018+9.1%+7.7%+15.8%
Q4 2017+3.2%-3.1%-5.6%
Q3 2017-0.6%+0.1%-2.8%
Q2 2017+3.1%+2.4%+0.6%
Q1 2017-1.3%-1.1%+0.5%
Q4 2016+0.4%+1.3%+5.3%
Q3 2016-7.3%-5.7%-10.9%
Q2 2016+3.1%+2.5%+3.1%
Q1 2016+7.3%
Q4 2015+12.1%
Q3 2015+6.0%
Q2 2015-0.1%
Q1 2015-1.4%
Q4 2014+2.9%
Q3 2014-5.5%
Q2 2014+8.2%
Q1 2014-3.4%
Q4 2013+10.8%
Q3 2013+1.6%
Q2 2013+31.5%
Q1 2013+4.3%
Q4 2010-9.3%
Q4 2012+0.6%
Q3 2011+15.7%
Q3 2012+20.2%
Q2 2011-9.8%
Q4 2011-9.8%
Q2 2012-19.2%
Q1 2012

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