Meta, the company that owns Facebook, Instagram and WhatsApp, has shared its fourth quarter results, reporting better than expected numbers. While the company beat revenue estimates, CEO Mark Zuckerberg declared 2023 a “Year of Efficiency,” hinting at further restructuring of the company to focus on its long-term metaverse and AI projects.
Meta Reports Better Than Expected Fourth Quarter 2022 Results
Meta, the social business, reported slightly positive results for the fourth quarter of 2022, beating revenue expectations and providing a deeper explanation of the direction the company will take during 2023. The company received revenue of $32.170 million, higher than the estimated $31.530 million, giving investors hope about the company’s recovery in the future.
The company, which has been criticized for pivoting its business model towards the metaverse, a digital representation of the real world, is now trying to refocus after heavy losses from R&D in this technology. Meta CEO Mark Zuckerberg explained that the management theme for 2023 would be the “Year of Efficiency”.
Zuckerberg stated that as part of this new approach, “the company will work to flatten our organizational structure and eliminate some levels of middle management to make faster decisions, as well as implement AI tools to help our engineers be more productive.” In addition, Zuckerberg explained that in the future, Meta will be more aggressive in pulling the plug on underperforming or non-critical projects.
Metaverse continues to be a long-term priority
While Reality Labs, the company’s metaverse division, suffered nearly $14 billion in losses through 2022, Zuckerberg still sees this as a long-term priority. Zuckerberg also listed AI as one of the company’s main focuses, aiming to include it as an operational advantage to better monetize its Reels short video product.
Zuckerberg fixed:
The two main technology waves driving our roadmap are AI today and, in the longer term, the metaverse.
Meta’s CFO, Susan Li, clarified that Meta expects to lose more money from the Reality Labs operation in 2023, but justified it by the great opportunities this could bring for the company. She explained:
We still expect our full-year Reality Labs losses to increase in 2023, and we will continue to invest significantly in this area given the significant long-term opportunities we see.
In September, the company announced several adjustments to reduce its operating expenses, including laying off 11,000 workers, representing 13% of its workforce, as part of its efficiency strategy.
What do you think about the direction Meta is taking in 2023? Tell us in the comment section below.
image credits: Shutterstock, Pixabay, Wiki Commons
