Meta posts record-breaking earnings in 2023
Facebook ends year with 3 billion monthly users
Meta, the parent company of Facebook, has disclosed that the world’s leading social media platform concluded 2023 with unprecedented earnings and with a staggering 3.07 billion monthly active users, marking a notable 3% increase from 2022.
Meta’s advertising business also exceeded analyst predictions during the fourth quarter of 2023, achieving a new revenue milestone of $40.1 billion.
An impressive 96% of the earnings was generated from advertising, reflecting a substantial 25% increase compared to the same period in 2022. Concurrently, Meta’s profits soared, surpassing the triple-digit mark to reach $14 billion year-over-year.
Mark Zuckerberg, Meta founder and CEO, noted: “We had a good quarter as our community and business continue to grow. We’ve made a lot of progress on our vision for advancing AI and the metaverse.”
According to Meta’s latest earnings release, the social media giant continues its remarkable streak of never experiencing a year-over-year decline in active users.
No more user numbers
Following its latest earnings release, Meta has announced a significant shift in its reporting strategy, revealing that it will no longer disclose Facebook user numbers in future releases.
Instead, the company intends to focus on more pertinent metrics for its advertising business, such as alterations in ad impressions and the average price per ad at the regional level.
During an investor call, Zuckerberg highlighted 2023 as the “year of efficiency”, attributing the company’s success to its streamlined operations.
Zuckerberg highlighted the benefits of Meta being a leaner organisation, citing the positive impact on execution speed and overall performance. This efficiency drive included the implementation of aggressive cost-cutting measures, including the dismissal of thousands of employees.
Zuckerberg and his college roommates, Andrew McCollum, Eduardo Saverin, Chris Hughes, and Dustin Moskovitz, founded Facebook in 2004 as a Harvard University dorm-room project. Initially exclusive to college students, the platform quickly expanded its user base, connecting people globally.
Facebook’s innovative features, such as the News Feed and Timeline, revolutionised online social interaction. Over the years, the company acquired Instagram and WhatsApp, solidifying its influence.
Despite facing controversies related to privacy and misinformation, Facebook remains a cultural and technological giant, impacting communication, connectivity, and digital culture worldwide.
In October 2021, Facebook rebranded to Meta to reflect all of its products and services across its family of apps and a focus on developing social experiences for the metaverse — moving beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology.
Featured image: Facebook is the world’s leading social media platform. Image