Meta set to report fourth-quarter earnings after the bell - CNBC

Meta reports fourth-quarter net connected Wednesday arsenic the institution tries to reverse a descent that pushed the banal down by 64% past year.

Here's what analysts are expecting:

• Earnings: $2.22 per share, according to Refinitiv
• Revenue:  $31.53 cardinal expected, according to Refinitiv
• Daily Active Users (DAUs): 1.99 cardinal expected, according to StreetAccount
• Monthly Active Users (MAUs):  2.98 cardinal expected, according to StreetAccount
• Average Revenue per User (ARPU): $10.63 expected, according to StreetAccount

Meta's income are expected to driblet for a 3rd consecutive quarter, underscoring the challenges the societal media institution faces arsenic economical uncertainty leads businesses to trim integer advertisement spending and intermission campaigns.

Analysts expect the Facebook genitor institution to study a gross diminution of much than 6% for the 4th quarter, and they're projecting 1 much quarterly driblet earlier maturation begins to tick backmost up aboriginal this year.

While the banal marketplace started to rebound successful January from a brutal 2022, economical forecasts inactive amusement a reasonably gloomy 2023, which could spell continuing occupation for the online advertisement market. A caller Cowen survey of 50 advertisement buyers recovered that companies are readying to summation their advertisement spending successful 2023 by lone 3.3%, which the concern slope said is "the softest advertisement maturation outlook we've seen successful 5 years."

On Tuesday, Snap reported fourth-quarter revenue that missed estimates, sending the shares tumbling successful extended trading. The institution besides said its "internal forecast" assumes a gross driblet successful the archetypal 4th of betwixt 2% and 10%.

While overmuch smaller than Meta, Snap faces immoderate of the aforesaid challenges, including a slowdown successful online advertisement spending, accrued contention from TikTok and weakened targeted advertizing owed to Apple's 2021 iOS privateness update. Alphabet and Amazon volition wrapper up net reports from the large online advertisement platforms connected Thursday, followed by Pinterest adjacent week.

In November, Meta said it would laic disconnected implicit 11,000 employees, oregon 13% of the workforce, arsenic portion of the company's plans to trim costs.

"We are besides taking a fig of further steps to go a leaner and much businesslike institution by cutting discretionary spending and extending our hiring frost done Q1," CEO Mark Zuckerberg said successful a letter to employees astatine the time.

Last twelvemonth was besides marred by Zuckerberg's costly effort to merchantability Wall Street connected a program to pivot the company towards the yet-to-be-developed satellite of the metaverse. Zuckerberg has said the metaverse, which would see virtual world and augmented world technologies, could correspond the adjacent large mode radical interact.

The large stake has frustrated investors, who interest the institution is putting excessively overmuch absorption connected a futuristic endeavor portion its halfway advertisement concern struggles to revive growth. Meta's Reality Labs unit, location to the metaverse ambitions, mislaid astir $9.4 cardinal successful the archetypal 3 quarters of 2022.

Analysts expect Reality Labs to amusement an operating nonaccomplishment of $4.36 cardinal for the 4th fourth connected gross of $715.1 million, according to StreetAccount. Meta said past 4th that "Reality Labs operating losses successful 2023 volition turn importantly year-over-year."

WATCH: Snap shares plunge connected anemic revenue