Meta Platforms (META) Q4 2023 Earnings Preview

Meta Platforms META Q4 2023 Earnings Preview

Meta Platforms, Inc. (NASDAQ: META) will report Q4 2023 results on Thursday, February 1, 2024. Here are the key numbers that we’re watching.

Figure 1: Meta Platforms – consensus expectations for Q4, past earnings surprises, revisions, and CAGR

Meta Platforms Earnings Preview

Source: Visible Alpha consensus (January 26, 2024). “Previous Surprises” indicate the direction that specific line items beat or missed. “Consensus Revisions” show the trajectory of line items from a given date.

Meta Platforms Q4 2023 Earnings Preview

According to Visible Alpha consensus, total revenues expected for Q4 have remained at $39 billion and operating profit from the Family of Apps at $20 billion since Q2 2023, driven by solid performance. However, there is debate among the analysts into Q4 for the Family of Apps’ income from operations, with estimates ranging from $15.8 billion to $21.7 billion.

For 2024, expectations for operating income from the Family of Apps have increased from $71.9 billion last quarter to $73.6 billion ahead of Q4 earnings, driven by better efficiency in the business. In addition to the continued expected efficiencies in the Family of Apps segment, projected losses from Reality Labs have decreased further since last quarter for both 2024 and 2025, suggesting efficiency is expected to continue to have an impact here too. Will Meta be able to continue managing costs in 2024?

The stock has been an outperformer since last quarter, up more than 30%. What new information will come out of the Q4 release that could potentially maintain the positive momentum?

Figure 2: Meta consensus estimates

Meta Platforms Consensus Estimates

Source: Visible Alpha consensus (January 26, 2024). Stock price data courtesy of FactSet. META’s current stock price is as of the market close on January 25, 2024.


About Melissa Otto, CFA

Melissa is Head of TMT Research at Visible Alpha. She spent 20+ years as an equity analyst and portfolio manager. At TIAA/Nuveen, Melissa specialized in covering global technology and consumer stocks and the Pan-Asia region. She also managed one of Fidelity's equity research teams as a director of research. In addition to her equity investing career, Melissa worked directly with software engineering teams at Bloomberg, Microsoft, and MSCI building cloud-based solutions to centralize and aggregate critical investment data for investors. Melissa studied Japanese at Harvard University, received her MA in economics from Brandeis University and MS degree from the University of Pennsylvania, and is a CFA charterholder. She is certified in Azure Fundamentals and Agile Project Management.

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