Meta Revenue in 2023 Reaches $135 bn as Digital Advertising Shows no Slowdown

Meta Platforms, the parent company of social media giant Facebook, has announced impressive financial results for the fourth quarter and full year of 2023.
Digital advertising revenue of Meta in 2023The technology company reported a revenue of $40.111 billion for Q4, marking a significant 25 percent increase, with a net income of $14.017 billion.

Breaking down the revenue figures, Meta Platforms generated $18.585 billion from the US & Canada, $9.441 billion from Europe, $7.512 billion from Asia-Pacific, and $4.573 billion from the Rest of the World.

The total revenue for the full year 2023 reached $134.902 billion, reflecting a substantial 16 percent growth, with a net income of $39.098 billion.

Meta Platforms disclosed that Facebook daily active users (DAUs) reached 2.11 billion on average for December 2023, indicating a 6 percent increase.

Digital Advertising

In the fourth quarter, digital advertising impressions across the Family of Apps, including Facebook, Instagram, and WhatsApp, surged by 21 percent, and the average price per digital ad increased by 2 percent.

For the entire year 2023, digital ad impressions experienced a notable 28 percent increase, although the average price per ad decreased by 9 percent.

Meta Platforms reported capital expenditures of $7.90 billion and $28.10 billion for the fourth quarter and full year, respectively, attributing these figures to investments in servers, data centers, and network infrastructure.

As of December 31, 2023, Meta Platforms’ headcount stood at 67,317, reflecting a 22 percent decrease year-over-year.

Meta Platforms outlined its expectations for the first quarter of 2024, projecting revenue in the range of $34.5-37 billion, and full-year 2024 expenses in the range of $94-99 billion.

Capital expenditures for 2024 are estimated to be in the range of $30-37 billion, emphasizing investments in servers and data centers.

Technological Advancements

Meta Platforms has fully launched its Meta AI assistant and other AI chat experiences in the US. The company is testing over 20 new AI features across its Family of Apps. Notable areas of focus for 2024 include the launch of Llama 3, further development of the Meta AI assistant, and progress on the AI studio roadmap to facilitate easier AI creation.

In addition to AI and the metaverse, Meta Platforms aims to enhance its apps and ads businesses. Key priorities include the continued growth of Reels and the discovery engine, with a specific focus on messaging as a significant revenue pillar.

The success WhatsApp in the United States, particularly in the private, secure, and cross-platform messaging space, is highlighted as a noteworthy trend.

Meta Platforms is working on the expansion of Threads, which has surpassed 130 million monthly active users, and the ongoing success of Reels across Instagram and Facebook. The company is unifying recommendation systems across Reels and other video formats for future opportunities.

Furthermore, Meta Platforms is building an Advantage+ portfolio of solutions to assist advertisers in leveraging AI for automated advertising campaigns. Features like Advantage+ Audience and Advantage+ Shopping aim to automate aspects of the campaign creation process, providing advertisers with more efficient tools.

The company has also completed the global rollout of generative AI features such as text variations and image expansion, with plans to broaden availability of background generation in the near future. Business messaging, Conversions API, and engaging on-platform ad experiences remain key areas of focus for Meta Platforms in 2024, as it continues to innovate and evolve its offerings in the dynamic digital landscape.

Baburajan Kizhakedath

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