- Maiden dividend of 50 cents per share declared
- $50 billion share buyback programme
- Fourth quarter revenue up 25% to $40.1 billion
Facebook-owner Meta Platforms (META:NASDAQ) must surely be crowned the ‘comeback kid’ out of the ‘Magnificent Seven’.
The US tech giant not only announced its maiden dividend but also a 25% year-on-year increase in fourth quarter revenue to $40.1 billion and a 16% rise in sales to $134.9 billion for the full year ending 31 December 2023.
Meta shares, which soared 16% to the $461 mark at one point in after-hours trading on Wall Street, are up 109% over the past year.
The US tech giant showed investors that it had kept total costs and expenses down with a fall of 8% in the fourth quarter to $23.7 billion.
As of 31 December 2023, the company’s headcount was 67,317, a 22% year-on-year reduction. Back in March 2023, Mark Zuckerberg-led Meta announced that it would be laying off approximately 13% of its workforce or 11,000 jobs as part of its ‘year of efficiency’ and this turnaround strategy appears to be working so far.
COMPETITORS CAUGHT ON THE HOP
Ben Barringer, technology analyst at Quilter Cheviot, commented: ‘Meta has caught its competitors on the hop and surprised the market by announcing its intentions to pay a dividend – something that is rare in the tech world.
‘This is a symbolic moment and indicates what a turnaround story Meta has been on since its struggles in 2022. Mark Zuckerberg is showing that he wants to bring shareholders along with him and is highlighting that Meta is now a mature, grown-up business.’
Barringer added: ‘Its results show this success too with fantastic monetisation and engagement results from users, and its optimisation programme working well. Profit margins have doubled, and the core advertising part of the business is working well.
‘Meta is also a closet artificial intelligence (AI) winner. While its AI capabilities aren’t on show quite as much as some of the other tech players, its AI will be better servicing advertisers and making the ads themselves more relevant for users. With Reels and Instagram also doing well, Meta is set up for a good future and will seize on the buoyant digital advertising market we are seeing.’
Meta expects first quarter 2024 total revenue to be in the $34.5 billion to $37 billion range.
The California-based company said: ‘Our guidance assumes foreign currency is neutral to year-over-year total revenue growth, based on current exchange rates.’
