Meta releases Q4, full-year results, net income drastically falls

U.S. social media giant Meta Platforms, Inc. on Wednesday reported its financial results for the fourth quarter and the full year ended Dec. 31, 2022, with drastic decrease in net income.

The company posted a fourth quarter net income of 4.7 billion U.S. dollars, a 55 percent decline from 10.3 billion dollars in the same period in 2021, and a full-year net income of 23.2 billion dollars, down 41 percent from 39.4 billion dollars in the previous year.

Meta's quarterly revenue was 32.2 billion dollars, down 4 percent year over year, and its yearly total revenue reached 116.6 billion dollars, down 1 percent year over year.

"Had foreign exchange rates remained constant with the same periods of 2021, revenue would have been 2.01 billion dollars and 5.96 billion dollars higher, an increase of 2 percent and 4 percent on a constant currency basis for the fourth quarter and full year 2022, respectively," the company said on the revenue declines.

The diluted earnings per share for the year dropped to 8.59 dollars from 13.77 dollars in 2021.

The monthly active users increased 2 percent year over year to 2.96 billion as of Dec. 31, 2022, while daily active users were 2.00 billion on average for last December, an increase of 4 percent year over year, said the company, based in Menlo Park, Northern California.

Meta's total costs and expenses were 25.77 billion dollars and 87.66 billion dollars, an increase of 22 percent and 23 percent year over year for the fourth quarter and full year of 2022, respectively.

Its cash, cash equivalents, and marketable securities were 40.74 billion dollars as of December 31, 2022, according to the company.

"Our community continues to grow and I'm pleased with the strong engagement across our apps. Facebook just reached the milestone of 2 billion daily actives," said Mark Zuckerberg, Meta founder and CEO.

Meta expects its total revenue for the first quarter of 2023 to be in the range of 26-28.5 billion dollars, and anticipates its full-year 2023 total expenses to be in the range of 89-95 billion dollars, lowered from the prior outlook of 94-100 billion dollars due to slower anticipated growth in payroll expenses and cost of revenue.

The company expects its capital expenditures in 2023 to be in the range of 30-33 billion dollars, lowered from the prior estimate of 34-37 billion dollars.