Mark Zuckerberg recently announced that, by 2023, Meta will work to become a stronger and more nimble organisation. Meta has amazed the world with its superior–than–expected revenue results and a steady rise in its app users. While revenue has been decreasing for three consecutive quarters, Meta’s earnings call still came in at an impressive $32.17bn which surpassed the predicted $31.53bn. This brings the yearly revenue for 2022 to $116.61bn, a 1% drop from the past year. The company‘s costs and expenses in the most recent quarter increased 22% year–on–year to $25.8bn. Meta provided an estimate of $26bn to $28.5bn for the first quarter, slightly higher than the expected $27.1bn. If the revenue reaches the upper end of the forecast this quarter, Meta may finally put an end to its continuous sales decline.
Mark Zuckerberg, Founder and CEO of Meta, has labelled 2023 as the “year of efficiency”; with the focus of the company being to become a “stronger and more nimble organisation”. Zuckerberg commented on the success of the company’s progress, citing that Facebook has now reached 2 billion daily active users, and the family of apps, including Instagram, has nearly 3 billion daily active users – that‘s almost half of the world‘s population. Susan Li, Meta’s Chief Financial Officer, also announced a number of cost–cutting measures, with their expenses now predicted to be between $89bn to $95bn, lower than the prior outlook of $94bn to $100bn. Make sure to stay up to date with the latest Meta news for an insight into the year of efficiency.
Meta has taken steps to reduce its costs in 2023. Restructuring charges are down by almost 50%, while capital expenditures are being reduced by billions of dollars. This reflects Meta‘s shift to a more cost–efficient data centre architecture, which requires less construction spend for 2023. Meta‘s CFO, Li, is carefully monitoring the developments of the transatlantic data transfer and its potential effect on their European operations.
