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META First Quarter Earnings: 50% Yield With Successful AI-Powered Prediction

Writer's picture: AI Growth TechnologiesAI Growth Technologies

AI-powered tools assist investors in making informed decisions by evaluating vast amounts of data, identifying patterns, and identifying trends in real-time. Recently, our AI-driven analytics identified the potential in Meta Platforms, Inc. (NASDAQ: META) and recommended it to investors. being one of the first hugely popular social media behemoths with a diverse portfolio of assets and a well-known brand. The company's standing in the market and reputation are crucial competitive advantages that have helped it succeed. The company's capacity to produce robust cash flows is one of the important variables that investors should take into account when evaluating META stock. The business has constantly provided cutting-edge goods and services that have assisted its customers in enhancing their business operations and achieving their objectives. META's success can be attributed in part to its focus on research and development, which has allowed the company to stay ahead of the curve when it comes to technology innovation with a particular focus on how artificial intelligence is making a major impact already and this was reflected in the company's earnings announced yesterday.

"Our AI work is driving good results across our apps and business. We're also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long-term vision."


META 1Q23 results

Our main goal at growthtech.ai is to use artificial intelligence to create a trustworthy stock analysis platform. To find winning stocks, our platform uses a data-driven methodology that prioritizes earnings predictions and estimate revisions. In addition to adhering to this strategy, we closely monitor the most recent value, growth, and momentum trends to identify the most promising investment possibilities. Value investing is the most well-liked of these trends since it has a track record of success in a variety of market circumstances. To find firms with a high likelihood of long-term growth, value investors employ a range of techniques, including time-tested valuation criteria. As a Decision Support System (DSS), instead of serving as your single deciding element, these signals should be used as a powerful instrument to significantly shorten the time it takes to identify new market opportunities. Its purpose is to improve your accuracy, speed up decision-making, impartiality, risk management, better efficiency, and adaptability.


META First Quarter Results


Meta Platforms has released its financial results for the first quarter ending on March 31, 2023. Despite the ongoing restructuring and layoffs, the company has reported a 5% YoY increase in daily active people (DAP) and monthly active people (MAP). Mark Zuckerberg, the founder, and CEO of Meta, has announced that their AI work is driving good results across their apps and business and that they are becoming more efficient so they can build better products faster and put themselves in a stronger position to deliver their long-term vision. In the first quarter of 2023, Meta's ad impressions increased by 26% YoY while the average price per ad decreased by 17% YoY. The company's revenue was $28.65 billion, a YoY increase of 3%, and an increase of 6% YoY on a constant currency basis. Total costs and expenses were $21.42 billion, a YoY increase of 10%. This includes charges related to Meta's restructuring efforts of $1.14 billion in the first quarter of 2023. Capital expenditures, including principal payments on finance leases, were $7.09 billion for the first quarter of 2023.


Despite the ongoing layoffs, Meta repurchased $9.22 billion of its Class A common stock in the first quarter of 2023, and as of March 31, 2023, the company had $41.73 billion available and authorized for repurchases. Cash, cash equivalents, and marketable securities were $37.44 billion as of March 31, 2023. Long-term debt was $9.92 billion as of March 31, 2023. Headcount was 77,114 as of March 31, 2023, a decrease of 1% YoY. Substantially all employees impacted by the layoff announced in November 2022 are no longer reflected in Meta's reported headcount as of March 31, 2023. Furthermore, the employees that would be impacted by the 2023 layoffs are included in Meta's reported headcount as of March 31, 2023.


In 2022, Meta initiated several measures to pursue greater efficiency and to realign its business and strategic priorities. As of March 31, 2023, the company has substantially completed the 2022 employee layoffs while continuing to assess facilities consolidation and data center restructuring initiatives. In March 2023, Meta announced three rounds of planned layoffs to further reduce its company size by approximately 10,000 employees across the Family of Apps (FoA) and Reality Labs (RL) segments. In connection with these layoffs, the company expects to incur total pre-tax severance and related personnel costs of approximately $1 billion, of which $523 million was recognized during the first quarter of 2023, and the remaining charges will be substantially recorded by the end of 2023.


Total restructuring charges recorded under Meta's FoA segment were $934 million, and under its RL segment were $210 million during the first quarter of 2023. Excluding these charges, Meta's operating margin would have been four percentage points higher, and its diluted EPS would have been $0.44 higher for the first quarter of 2023. Meta expects second-quarter 2023 total revenue to be in the range of $29.5-32 billion, assuming foreign currency headwinds will be less than 1% to YoY total revenue growth. The company anticipates that its full-year 2023 total expenses will be in the range of $86-90 billion, including $3-5 billion of restructuring costs related to facilities consolidation charges and severance and other personnel costs.



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Sources: 1. META Platforms Inc Investor Relations, "Meta Reports First Quarter 2023 Results" (2023)



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