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.

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