Meta reports Q4, full-year results with drastic decline in net income

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

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

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

"Had foreign exchange rates remained constant with the same periods of 2021, revenue would have been US$2.01 billion and US$5.96 billion 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 US$8.59 from US$13.77 in 2021.

The monthly active users increased 2 percent year over year to 2.96 billion as of December 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 US$25.77 billion and US$87.66 billion, 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 US$40.74 billion 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 US$26-28.5 billion, and anticipates its full-year 2023 total expenses to be in the range of US$89-95 billion, lowered from the prior outlook of US$94-100 billion 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 US$30-33 billion, lowered from the prior estimate of US$34-37 billion.