Meta Platforms Inc., the social media giant based in Menlo Park, California, reported a significant boost in profit and revenue for the final quarter of 2023. The company's success was attributed to a rebound in digital advertising, as well as cost-cutting measures and layoffs implemented throughout the year. CEO Mark Zuckerberg referred to 2023 as the "year of efficiency."

In the October-December period, Meta Platforms Inc. recorded a profit of $14 billion, or $5.33 per share, compared to $4.65 billion, or $1.76 per share, in the same period the previous year. Revenue also saw a substantial increase, rising 25% to $40.11 billion from $32.17 billion. These figures exceeded analysts' expectations, with FactSet Research reporting an average estimate of $4.82 per share on revenue of $39.1 billion.

"The company can talk all it wants to about AI and the metaverse, but it's still a social media company that gets nearly all its revenue from advertising, and advertisers still clearly love Meta," stated tech analyst Debra Aho Williamson, emphasizing the company's continued reliance on advertising revenue.

Meta Platforms Inc. also experienced growth in its user base, with monthly active users on its various apps, including Facebook, Instagram, Messenger, and WhatsApp, reaching 3.98 billion by the end of 2023, a 6% increase from the previous year. However, the company does not disclose the user base of its other platforms.

The impressive financial results were announced shortly after Zuckerberg testified before the Senate, along with other social media CEOs, regarding the potential risks their platforms pose to children. Despite these concerns, Meta Platforms Inc. remains optimistic about its future performance. For the current quarter, the company forecasts revenue between $34.5 billion and $37 billion, surpassing Wall Street's expectations. Analysts predict revenue of $33.9 billion for the first quarter.

To further demonstrate its commitment to shareholders, Meta Platforms Inc. initiated a quarterly dividend. The company plans to pay 50 cents per share on March 26 to shareholders of record as of February. The announcement of the dividend, along with the impressive financial results, led to a surge in Meta's stock price. After-hours trading saw the company's shares jump 11.5% to $440.15, following a closing price of $394.78, up 1.2%.