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Meta Reports Fourth Quarter and Full Year 2022 Results
- chollida1 4y agoNumbers: - Q4 add revenue of $31B Est of $30B - $40B share bye back, far better than spending on the meta verse and an admission growth is over - note to above, check out their existing cash on hand - VR lost $4.2B, come on guys on revenue of $700M, again, come on guys get someone who knows what they are doing running this area - 86,500 employees, I'm guessing alot of these are in recruitment, content moderation, etc - laid off/fired 13% of workforce so far this running year - daily users of more than 2B, wow, growth of 5% yoy, that is good - shares up 15% probably alot to do with the Fed and tax loss selling holding period being over, so people putting this trade back on - Total restructuring charges recorded under our FoA segment were $3.76 billion and RL segment were $440 million during the fourth quarter of 202 (FOA is family of applications and RL is reality lab). not sure what those charges are for, look into this. - on adds, from Bloomberg reporting "Ad impressions increased by 18% while average price per ad decreased by 16% for 2022." - So the add number they can game went up and the one affected by market force went down. Thoughts: - attempting to come back form Q2 and Q3 yoy decrease in revenue - watch ad revenue, snap was down on large ad revenue declines. FB should be the same given they are in the same ad markets - how often is tiktok mentioned by FB, or will they continue to pretend they have no competitors? - Fed announced a small rate hike that the market loved so FB could rip if they perform even moderately well - as always check out what shares of SNAP, Pinterest and GOOG do on Meta results, especially if add revenue is up, well maybe not SNAP as the market has given up on that company, GOOG and PINS are up, heck so is SNAP - one other thing to watch closely is what Susan Li, the CFO says in the call, like what google did with Ruth Porat, they hired a numbers person to be the "adult" in the room to cut costs where possible. Will the CFO talk about cutting costs or growign the company. * note* I guess a huge $40B buy back indicates that FB's growth is over and Mark is capitulating to wall street here by handign back cash, rather than burning it on VR
- kgwgk 4y ago> - 86,500 employees, I'm guessing alot of these are in recruitment, content moderation, etc Headcount was 86,482 as of December 31, 2022, an increase of 20% year-over-year. Our reported headcount includes a substantial majority of the approximately 11,000 employees impacted by the layoff we announced in November 2022, who will no longer be reflected in our headcount by the end of the first quarter of 2023.
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- MuffinFlavored 4y ago> - laid off/fired 13% of workforce so far this running year I wish it was acceptable/normal for companies to reveal how much more of their workforce (if any) they plan to layoff in the coming quarters It's almost as if there's a need for headcount projections. > daily users of more than 2B, wow, growth of 5% yoy, that is good eh, i always feel like this is dishonest for them. if a daily user is on whatsapp and they never see an ad, isn't that user just an expense for them? instagram users scrolling ads: revenue. facebook user scrolling ads: revenue. me talking to my family on whatsapp? unless they're benefiting from scanning the chat and delivering me ads on it (is this what they do? is it legal?) isn't it kind of like... they're paying the bandwidth/storage costs and getting very little out of it? > on adds, from Bloomberg reporting "Ad impressions increased by 18% while average price per ad decreased by 16% for 2022." is this left over from "apple's privacy changes made our ad targeting less effective so we need to display more, lower quality ads that are worth less to get as many conversions as we used to previouly"?
- pavlov 4y ago2B is the daily active users for Facebook specifically. For the entire family of apps it’s 2.96 billion DAU (i.e. people who used one or several of FB/Insta/WhatsApp during the day).
- modeless 4y ago+20% after hours, wow
- michaericalribo 4y agoSeems like anti-tracking by Apple had a tangible impact on their business -- revenue down from last year.
- whateveracct 4y agoSounds like it works then! Glad I always press "Ask App Not to Track"
- el_nahual 4y agoobjectively this means you still get ads just less releavnt ones, no? It's not like the button says "Don't show me ads."
- dangwhy 4y ago> objectively this means you still get ads just less releavnt ones, no? business might choose to not show ads at all vs showing irrlevent ads. Surely there is a downside and risk to showing ads, a risk that cannot be taken willy nilly.
- Gigachad 4y agoLess targeted ads are less likely to psychologically manipulate me in to spending money. I'd like an option to only show me ads I have no chance of spending money for.
- timeon 4y agoLess relevant are better if you do not like ads. It is bit easier to filter them out of the mind.
- larnik 4y agoI hate ads. Used AdBlocker since ~2005 when I was in middle school and first got internet. If I'm going to see ads, they better be relevant.
- 4y ago
- jihadjihad 4y agoNet income down ~40% YoY ouch. Stock is up though!
- MuffinFlavored 4y agowhat's the main reason for this?
- ra7 4y ago$40B increase to their buyback program. Edit: Actually meant announcement of an increase to buyback program, not that they've already done it.
- chollida1 4y agoThat cash hasn't come out of the corporate treasury yet:)
- ojbyrne 4y agoI don’t think that’s correct. They announced a future increase of $40 billion. And I don’t think share repurchases affects net income anyway.
- MuffinFlavored 4y agowhat would the number look like if it weren't for this?
- StrangeDoctor 4y agoHard to predict and I’m not sure of the timeline of purchases, but 40B was 10% of their market cap at closing, which is kinda bonkers. So naively at least a 10% jump.
- dd36 4y agoStock buybacks aren’t on the Income Statement…
- 4y ago
- paulpauper 4y agoUp 17% in AH, on top of huge gains over the past 2 months. Nuts. It looks like it really wants to get back to $300+ It shows how all this talk about metaverse losses was overblown. This is why my best piece of financial advice is to tune out the media. By the time something is a narrative, it's too late. If the media is talking about how Facebook peaked or is the next myspace, this is time to buy. Same for Netflix. Metaverse notwithstanding, Facebook and Instagram are still huge cash cows. Ad CPCs are really high, especially mobile ads. Companies, especially in financial services and healthcare, paying so much $ for clicks to target older people, retirees, etc. and also people with medical problems. Obesity epidemic means more healthcare spending, same for people living longer.
- MuffinFlavored 4y ago> Facebook and Instagram are still huge cash cows. I wonder what that makes TikTok then? Do we have any insight into how much ad cash Facebook + Instagram generate compared to TikTok?
- avrionov 4y ago$5B last year 2022. https://www.statista.com/statistics/1305708/tiktok-ad-revenue/ https://www.statista.com/statistics/1305708/tiktok-ad-revenu...
- toephu2 4y agoTikTok still losing money though Operating Loss At TikTok Parent ByteDance Topped $7 Billion Last Year, WSJ Reports [1] [1] https://www.wsj.com/articles/tiktok-parent-bytedance-sees-losses-swell-in-push-for-growth-11665071238 https://www.wsj.com/articles/tiktok-parent-bytedance-sees-lo...
- coffeebeqn 4y agoTheir infra is more expensive- all content is decent quality video instead of text and fairly low res images - and from what I can tell the ad network is not very robust. Not too surprising
- firstfewshells 4y agoShould have loaded those shares a couple of months back, smh. Up 70%+ since Nov last year.
- rvz 4y agoThe death of Meta Platforms Inc. (Formerly Facebook Inc) has once again been greatly exaggerated. Perhaps you should have bought the stock when it went below $90 rather than screaming about the price going to zero. How things change in just several months. I have always expected the same: Business as usual [0] [0] https://news.ycombinator.com/item?id=32256465 https://news.ycombinator.com/item?id=32256465
- nvarsj 4y agoSeemed obvious to lots of people who live in reality. There's definitely a weird echo chamber on HN that decries FB along the lines of "Oh no one I know uses it, therefore why does it exist", meanwhile 2bil+ people are using FB apps every day. Always makes me laugh when I see those ridiculous statements - there's even one in the comments here!
- MikusR 4y agoUsers of one social network complaining about another social network.
- kerpotgh 4y agoI’m just really happy how resilient the economy is at this point.
- bilsbie 4y agoHow do they make all this money when everyone I know has stopped using it? Other countries?
- 1123581321 4y agoYou don't know anyone on Instagram? That seems very unlikely. And yes, the United States only supplies a quarter of a billion of Facebook's/Instagram's three billion users.
- mtoner23 4y agoyou are not the average american
- xuki 4y agoBecause you don’t know everyone.
- smith7018 4y agoInstagram is an app and therefore can't have its ads (easily) blocked. Facebook is mostly used by older people that don't know about ad blockers.
- charcircuit 4y agoFacebook is an app too
- biesnecker 4y agoAnd almost all of the revenue for it comes from mobile users.
- gardenhedge 4y agoIs this why Reddit pushes people to its app?
- pm90 4y agoYes but also tracking.
- gen220 4y agoQuestion for folks here: what is the bull case for Meta remaining a growth stock, given the current regulatory environment and uncertainty around the medium-term prospects of VR as an "attention" category? More concretely, what is the scenario for META going back to "good ol' days of" mid-20%, low-30% YoY quarterly revenue growth, given mounting regulatory and privacy barriers that are largely beyond their ability to exert influence/control? Context is they're on a streak of 4 quarters of <10% YoY quarterly growth for the first time in their history. Last three quarters were basically air-balls (flat / slightly-negative).
- lvl102 4y agoYou know Meta has the best tech in terms of AI/ML right? They just need a new leadership focus to steer the company in the right direction. They literally have all the tools to lead in that area.
- rcme 4y agoDo they? The LLM they released was much worse than GPT-3.
- lvl102 4y agoAll those models are only as good as the data they’re trained on. Google and Meta both have the most relevant proprietary data that cannot be rivaled. Not even close.
- vernon99 4y agoThis depends on what are you training the model for. Arguably wikipedia is a much better dataset for all things related to real world and history than Fb’s feed or activities or a bunch of websites optimized for SEO. This is easily illustrated by ChatGPT not being Google or Meta and doing a pretty great job with available sources. So no, this doesn’t matter much, imo.
- 4y ago
- bubbleRefuge 4y agoThe bigger story is that Federal Reserve Interest rate policy is stimulating rather than slowing down the economy as desired. Higher interest rates is higher interest payments into the economy by the government which is the deficit spending. The problem with it is that its very regressive. So folks holding large amounts of cash are benefitting from the added interest income. In 100 years history will judge these guys as clueless buffoons. Hitting the accelerator pedal rather than the brakes.
- lokar 4y agoDo you work at the central bank of turkey?
- bubbleRefuge 4y agobetter yet check argentina.
- jaboutboul 4y agoDoes this mean the tech layoffs will stop now?
- darkwizard42 4y agoI don't think so. I think this might be just another signal to other profitable companies that tightening your belt (even though you are making absurd money) is rewarded. Tight focus by Meta and better than expected performance of increased ad load has paid off.
- retrocryptid 4y agoNo one seems to be talking about thr $40B stock buyback authorization just announced. I'm neither a fan nor a detractor of META, but think with eps growth so negative and such high losses, perhaps stock price increases are partially due to the promise of buybacks from an elastic market. It's an absolutely great idea if they can get to real eps growth over the next 3 or 6 months. I would flip bearish if they can't get to positive eps growth in 6 months. I don't have any META in my portfolio, just making an observation.
- HDThoreaun 4y agoMeta has always been immensely profitable. It was hit this year because investors didn’t like how hard mark was going into the reality labs stuff and that also reminded them that he can do whatever the hell he wants, including making no money for extended periods of time. Their recent layoffs and this reports continued capex cuts show that mark is committed to keeping his investors happy which is why we’re seeing the bounce back.
- 1vuio0pswjnm7 4y agoMeta's Dreams Have Become A Metaverse Nightmare https://analyticsindiamag.com/metas-dreams-have-become-a-metaverse-nightmare/ https://analyticsindiamag.com/metas-dreams-have-become-a-met...