Meta published, on February 1, its financial results for the fourth quarter of 2022 and its financial statements for the fiscal year. Despite a turnover down 4% over the past three months, the tech giant has exceeded experts’ expectations and seen its shares jump 20%. However, Meta faces, for the first time since its IPO in 2012, to a decline in annual revenue.
Reality Labs still lagging behind
During the last quarter of the year, Meta recorded revenue of $32.2 billion. Throughout the year, announce $116.6 billion, or 1% down than in 2021. A first time in its history.
Its ‘Family of Apps’ divisions, which includes Facebook, Instagram and WhatsApp, and ‘Reality Labs’, charged with developing virtual reality and metaverse products, respectively, reported $31.4 billion and $727 million. A decrease of 4% and 17% compared to the current year.
Meta reveals, for the “Family of Apps” department, a profit of $10.7 billionwhich is 33% less than in the fourth quarter of 2021. Mark Zuckerberg points out that Facebook has exceeded the symbolic threshold of 2 billion daily active users. The “Reality Labs” present Loss of $4.3 billion, almost 30% more than in the same period of the previous year. In total, during 2022, he will have caused Meta to lose nearly $13.7 billion.
Meta assumes substantial expenses
2022 will have been a particularly difficult year for Meta, scored for the first time by a decline in quarterly revenue, therefore annual. Its fiscal year was also impacted by substantial costs and expenses for its different segments.
During the fourth quarter of 2022, the Menlo Park-based company saw its charges amount to $25.8 billion, up 22% compared to the last quarter of 2021. This increase is barely larger for the full year, with $87.7 billion spent in 2022 compared to $71.2 billion in 2021, or a 23% growth.
To these are added the $4.2 billion cleared in the last three months for the restructuring of the group. Having taken over with a vengeance, Meta had to starts with 11,000 employees limit costs and continue to invest in what the mastodon boss describes as the future of the Internet, namely the metaverse.
For the first quarter of 2023, Mark Zuckerberg it forecasts revenue of $26 billion to $28.5 billion and projects total spending of between $89 and $95 billion for the full year. Meta also plans to grant $1 billion for renovation costs. The founder of the company concludes that ” 2023 will be the year of efficiency and we will strive to become a stronger and more agile organization “.
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