- According to FactSet's analysts, Meta Platform's revenue for the current year was $28.6 billion, which is a 3% increase from the previous year and exceeded the expected revenue of approximately $27.7 billion. This positive performance ended a three-quarter streak of declining revenue compared to the previous year, which had not happened since the company's initial public offering in 2012. Furthermore, the company anticipates that its revenue for the second quarter could potentially reach up to $32 billion.
Meta's operating margin would have been higher by four percentage points if not for $934 million restructuring charges stemming from three rounds of layoffs announced in March. These layoffs, are expected to result in 10,000 job cuts, following 11,000 layoffs in November. Additionally, Reality Labs, responsible for developing hardware and software for Meta's metaverse platform, incurred a $210 million charge.
Why it matters
Meta's shares fell by two-thirds in 2022, wiping out over $600 billion in market value due to Apple's policy changes. However, after CEO Mark Zuckerberg's efficiency push, the stock rebounded by over 70% this year. Meta Platforms increased sales and gained a larger share of the short-form video market due to improvements in its advertising business, including Reels.