Summary: CEO of Meta Mark Zuckerberg told investors that the company will be more efficient in 2023, which has caused its shares price to rise by more than 22%. During the company’s fourth quarter earnings report, it beat revenue expectations and reported 2 billion daily active users, although its monthly active users count was lower than expected. It plans to further cut expenses after laying off 11,000 employees last year.
Meta shares price has risen by more than 22% after CEO Mark Zuckerberg assured investors that the company would be more efficient in 2023.
Last year, the company lost more than 60% of its valuation as it continued investing heavily in its virtual reality project, metaverse, while digital ads, which Facebook relies on, slumped.
During the company’s fourth quarter earnings report on Wednesday, the man at the top said; “Our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization.”
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Things had gone from bad to worse for the Facebook owner as his pivot into a virtual world came at a time when the tech industry was experience severe economic problems. The parent company, Meta, had grown its workforce by nearly 96% based of projections from the pandemic era.
However, with the pandemic all but over and people back to their regular schedules, it had to layoff 11,000 employees to stay afloat. Even Zuckerberg himself confessed that 2022 was a first-of-its-kind in the company’s history.
Now, it appears that the company is on the path to recovering. In its earnings report, it beat revenue expectations for Q4 2022 $640 million. Also, its daily active users at the end of the period was 2 billion instead of the 1.99 billion that was expected, although, its monthly active users count was lower.
The revenue reported was still lower than what it was in 2021 but it was better than the preceding month. Its layoff helped it reduce its workforce growth to an increase of 20%, the same rate that Zuckerberg said that the company has grown with since its existence.
Meta expects that it will incur expenses of between $89 billion and $95 billion in 2023 with a slower growth. It also plans to lower capital expenditure.
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