Shares of Facebook parent company Meta jumped more than 15 per cent in after-hours trading after the company reported a 201 per cent yearly surge in fourth-quarter net profit, driven by a jump in advertising revenue and an increase in user numbers.
The California-based company posted a net profit of more than $14 billion in the quarter that ended on December 31, up 21 per cent compared with the third quarter.
Revenue for the three-month period surged by an annual 25 per cent to more than $40.1 billion, exceeding analyst estimates of $39.1 billion.
This is the third consecutive quarter that the company has reported double-digit revenue growth since the fourth quarter of 2021.
Meta's shares, which closed at $394.78 on Thursday, surged 15.1 per cent to trade at $454.40 a share in after-hours trading.
The stock has gained about 14 per cent so far this year and the company had a market value of about $1.01 trillion at close on Thursday.
In the fourth quarter, advertising impressions delivered across Meta’s family of apps increased 21 per cent on an annual basis while the average price for an advertisement soared by 2 per cent year on year.
Meta’s family of apps includes Facebook, Instagram, Messenger, WhatsApp and other services.
“We had a good quarter as our community and business continue to grow,” said Mark Zuckerberg, Meta founder and chief executive.
“We have made a lot of progress on our vision for advancing AI [artificial intelligence] and the metaverse.”
The company’s earnings per share jumped 203 per cent annually to $5.33 in the fourth quarter.
Meta, which employs more than 67,000 people, expects its March quarter total revenue to be in the range of $34.5 billion to $37 billion.
Facebook’s daily active users stood at 2.11 billion as of December 31, an increase of 6 per cent, while monthly active users surged 3 per cent to 3.07 billion.
“These numbers are a testament to the long-term benefits of Zuckerberg's turnaround that began in 2022,” Thomas Monteiro, senior analyst at Investing.com, told The National
“Not only did the company show an impressive ability to improve margins, but it was also agile enough to direct any extra revenues to the correct operations.
“This leaves no doubt to the fact that Zuckerberg's company is a serious player in all the main races being disputed at the moment, especially VR [virtual reality] and AI [artificial intelligence].”
In the fourth quarter, the company's costs and expenses stood at $23.73 billion, down 8 per cent on an annual basis, while its capital expenditure, including principal payments on finance leases, stood at more than $7.9 billion.
The company said it expects its full-year 2024 total expenses to be in the range of $94 billion to $99 billion, unchanged from its prior outlook.
The company's advertising sales contributed more than 96 per cent to overall sales in the fourth quarter, growing by about 23.8 per cent on an annual basis to more than $38.7 billion.
Revenue from other streams – including the Reality Labs unit – jumped 54 per cent on an annual basis to more than $14 billion.
Reality Labs, which includes augmented and VR-related consumer hardware, software and content for the metaverse, reported an operating loss of over $4.6 billion.
The unit's operating losses are expected to “increase meaningfully year over year due to our ongoing product development efforts in augmented reality/virtual reality and our investments to further scale our ecosystem”, said Susan Li, Meta’s chief financial officer.
The company expects its 2024 capital expenditure to hover in the range of $30 billion and $37 billion, a $2 billion increase of the high end of its prior range.
“We expect [capex] growth will be driven by investments in servers, including both AI and non-AI hardware, and data centres as we ramp up construction on sites with our previously announced new data centre architecture,” Ms Li said.
As part of its restructuring efforts in March, Meta announced it would lay off 10,000 employees and close about 5,000 open roles.
In November last year, the company laid off 11,000 employees, or 13 per cent of its workforce.
Meta said restructuring charges in the fourth quarter totalled $4.2 billion and $4.6 billion for the full year.
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
Kill%20Bill%20Volume%201
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SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2-litre%204-cylinder%20petrol%20(V%20Class)%3B%20electric%20motor%20with%2060kW%20or%2090kW%20powerpack%20(EQV)%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20233hp%20(V%20Class%2C%20best%20option)%3B%20204hp%20(EQV%2C%20best%20option)%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20350Nm%20(V%20Class%2C%20best%20option)%3B%20TBA%20(EQV)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EMid-2024%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3ETBA%0D%3C%2Fp%3E%0A
The%20Sandman
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STAY%2C%20DAUGHTER
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'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
Destroyer
Director: Karyn Kusama
Cast: Nicole Kidman, Toby Kebbell, Sebastian Stan
Rating: 3/5
UAE release: January 31
BACK%20TO%20ALEXANDRIA
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ETamer%20Ruggli%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENadine%20Labaki%2C%20Fanny%20Ardant%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3.5%2F5%3C%2Fp%3E%0A
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
SPECS
Nissan 370z Nismo
Engine: 3.7-litre V6
Transmission: seven-speed automatic
Power: 363hp
Torque: 560Nm
Price: Dh184,500
More coverage from the Future Forum
ASSASSIN'S%20CREED%20MIRAGE
%3Cp%3E%0DDeveloper%3A%20Ubisoft%20Bordeaux%0D%3Cbr%3EPublisher%3A%20Ubisoft%0D%3Cbr%3EConsoles%3A%20PlayStation%204%26amp%3B5%2C%20PC%20and%20Xbox%20Series%20S%26amp%3BX%0D%3Cbr%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
Killing of Qassem Suleimani
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
UAE currency: the story behind the money in your pockets
World Series
Game 1: Red Sox 8, Dodgers 4
Game 2: Red Sox 4, Dodgers 2
Game 3: Saturday (UAE)
* if needed
Game 4: Sunday
Game 5: Monday
Game 6: Wednesday
Game 7: Thursday
COMPANY%20PROFILE
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How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
What is graphene?
Graphene is extracted from graphite and is made up of pure carbon.
It is 200 times more resistant than steel and five times lighter than aluminum.
It conducts electricity better than any other material at room temperature.
It is thought that graphene could boost the useful life of batteries by 10 per cent.
Graphene can also detect cancer cells in the early stages of the disease.
The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.
Company%20profile
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MATCH INFO
Who: France v Italy
When: Friday, 11pm (UAE)
TV: BeIN Sports
Our Time Has Come
Alyssa Ayres, Oxford University Press
UAE currency: the story behind the money in your pockets
