Trade The News story
Reports Q4 $1.76 v $2.12e, Rev $32.2B v $31.3Be; Announces $40B increase to share buyback; Cuts FY23 Opex & Capex outlook
- Guides Q1 Rev $26.0-28.5B v $27.2Be
- Cuts FY23 Capex $30-33B (prior $34-37B)
- Cuts FY23 Opex $89-95B (prior: $94-100B)
- Facebook Daily active users (DAUs) 2.00B +4% y/y v 1.99Be
- Monthly active users (MAUs) 2.96B, +2% y/y v 2.98Be
- CAPEX $9.2B v $9.5B q/q
- Advertising Rev $31.3B, -4% y/y (cc)
- Total costs/expenses $25.8B v $21.1/B y/y (This includes charges related to our restructuring efforts of $4.20 billion and $4.61 billion in the fourth quarter and full year 2022, respectively.)
- Op margin 20% v 37% y/y
- Headcount 86.5K, +20% y/y
Restructuring: During the quarter ended December 31, 2022, we took several measures to pursue greater efficiency and to realign our business and strategic priorities. This includes a facilities consolidation strategy to sublease, early terminate, or abandon several office buildings under operating leases, a layoff of approximately 11,000 of our employees across the FoA and RL segments, and a pivot towards a next generation data center design, including cancellation of multiple data center projects.
- CEO: "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. "The progress we're making on our AI discovery engine and Reels are major drivers of this. Beyond this, our management theme for 2023 is the 'Year of Efficiency' and we're focused on becoming a stronger and more nimble organization."
- CFO: We now expect to record an estimated $1 billion in restructuring charges in 2023 related to consolidating our office facilities footprint. This is down from our prior estimate of $2 billion as we recorded a portion of the charges in the fourth quarter of 2022. We may incur additional restructuring charges as we progress further in our efficiency efforts.
- The reduced outlook reflects our updated plans for lower data center construction spend in 2023 as we shift to a new data center architecture that is more cost efficient and can support both AI and non-AI workloads. Substantially all of our capital expenditures continue to support the Family of Apps.
**NOTE: 11/09/22 META Affirms Q4 outlook and cuts slightly FY23 Opex; Confirms to cut 11K employees (13% of its workforce) citing lower Rev outlook than anticipated before; Extends hiring freeze into Q1 2023 with some exceptions - filing
- Cuts FY23 Capex $30-33B (prior $34-37B)
- Cuts FY23 Opex $89-95B (prior: $94-100B)
- Facebook Daily active users (DAUs) 2.00B +4% y/y v 1.99Be
- Monthly active users (MAUs) 2.96B, +2% y/y v 2.98Be
- CAPEX $9.2B v $9.5B q/q
- Advertising Rev $31.3B, -4% y/y (cc)
- Total costs/expenses $25.8B v $21.1/B y/y (This includes charges related to our restructuring efforts of $4.20 billion and $4.61 billion in the fourth quarter and full year 2022, respectively.)
- Op margin 20% v 37% y/y
- Headcount 86.5K, +20% y/y
Restructuring: During the quarter ended December 31, 2022, we took several measures to pursue greater efficiency and to realign our business and strategic priorities. This includes a facilities consolidation strategy to sublease, early terminate, or abandon several office buildings under operating leases, a layoff of approximately 11,000 of our employees across the FoA and RL segments, and a pivot towards a next generation data center design, including cancellation of multiple data center projects.
- CEO: "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. "The progress we're making on our AI discovery engine and Reels are major drivers of this. Beyond this, our management theme for 2023 is the 'Year of Efficiency' and we're focused on becoming a stronger and more nimble organization."
- CFO: We now expect to record an estimated $1 billion in restructuring charges in 2023 related to consolidating our office facilities footprint. This is down from our prior estimate of $2 billion as we recorded a portion of the charges in the fourth quarter of 2022. We may incur additional restructuring charges as we progress further in our efficiency efforts.
- The reduced outlook reflects our updated plans for lower data center construction spend in 2023 as we shift to a new data center architecture that is more cost efficient and can support both AI and non-AI workloads. Substantially all of our capital expenditures continue to support the Family of Apps.
**NOTE: 11/09/22 META Affirms Q4 outlook and cuts slightly FY23 Opex; Confirms to cut 11K employees (13% of its workforce) citing lower Rev outlook than anticipated before; Extends hiring freeze into Q1 2023 with some exceptions - filing