Facebook sees strong ad demand and hits 2 billion users in boost to Meta

Meta reported better-than-expected sales during the holiday quarter, fueled by strong demand for advertising as it attracted more users to its Facebook social network. Revenue for the fourth quarter was $32.2 billion. That compared with Wall Street estimates of $31.6 billion. Shares jumped more than 16% in extended trading. Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here Meta is recovering from the worst year for its stock in company history. The company faced a decline in advertiser demand due to weakness in the broader economy, amid inflation and an ongoing war in Europe, as well as a change in iPhone privacy rules. Meta cut 11,000 jobs, or 13% of the workforce, in November in its first-ever major layoff. Those cuts came during a quarter that was otherwise positive for the company. Facebook, Meta’s flagship social network, is still growing and now has more than 2 billion daily users, up more than 70 million from a year ago. Meta also projected revenue of $26 billion to $28.5 billion for the first quarter, in line with estimates of $27.25 billion. The company also boosted its stock-buyback authorization by $40 billion, adding to the $10.9 billion remaining from previous repurchase programs. Meta also says 2023 expenses will be less than previously forecast. Expenses for the year will be $89 billion to $95 billion, the company said Wednesday. That could help lessen investor concerns that the company is overspending on its virtual reality ambitions. —Bloomberg News

Facebook sees strong ad demand and hits 2 billion users in boost to Meta

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