Meta published, on February 1, its financial results for the fourth quarter of 2022 and its balance sheet for the financial year. Despite a turnover down 4% over the past three months, the tech giant has exceeded expert expectations and seen its shares climb 20%. However, Meta faces, for the first time since its IPO in 2012, to a drop in annual revenue.
Reality Labs still lagging behind
During the last quarter of the year, Meta recorded revenue of $32.2 billion. Over the full year, it announces $116.6 billion, or 1% less than in 2021. A first in its history.
Its “Family of Apps” divisions, comprising Facebook, Instagram and WhatsApp, and “Reality Labs”, in charge of developing virtual reality products and the metaverse, respectively reported $31.4 billion and $727 million. A drop of 4% and 17% over the rolling year.
Meta reveals, for the “Family of Apps” department, a profit of $10.7 billioni.e. 33% less than in fourth quarter of 2021. Mark Zuckerberg points out that Facebook passed the symbolic mark of 2 billion daily active users. The “Reality Labs” presents $4.3 billion loss, almost 30% more than the same period the previous year. In total, over 2022, it will have caused Meta to lose nearly $13.7 billion.
Meta undertakes substantial expenditure
2022 will have been a particularly difficult year for Metamarked for the first time by a decline in its quarterly turnover, then annual. Its fiscal year was also influenced by significant 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 greater over the full year, with 87.7 billion dollars spent in 2022 compared to 71.2 billion in 2021, i.e. a growth of 23%.
To these are added the $4.2 billion liquidated in the last three months for the restructuring of the group. After hiring with a vengeance, Meta had to part with 11,000 employees to limit costs and continue to invest in what the boss of the mastodon describes as the future of the Internet, namely the metaverse.
For the first quarter of 2023, Mark Zuckerberg forecasts revenue of $26 billion to $28.5 billion and anticipates total spending in the range of $89 billion to $95 billion for the full year. Meta is also planning $1 billion granted for restructuring costs. The company founder concludes that ” 2023 will be the year of efficiency and we will strive to become a stronger and more agile organization “.
