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Meta Reports Profits More Than Tripled and Issues Its First Dividend

Meta Reports Profits More Than Tripled and Issues Its First Dividend

The company’s quarterly revenue rose 25% as its costs fell after layoffs last year.

Meta on Thursday reported a 25 percent increase in quarterly revenue while profit more than tripled, a rise fueled by its ads business after a shaky 18 months of layoffs and a rocky digital advertising market.

The Silicon Valley company, which owns Facebook, Instagram and WhatsApp, also said it would issue its first dividend, of 50 cents a share. Dividends are typically associated with mature and slower-growth companies. Meta made the announcement as it spends heavily on capital investments, such as data centers and other infrastructure. The company also authorized an additional $50 billion in share buybacks.

The results pushed Meta’s shares up 14.5 percent to $449.51 in after-hours trading.

“Being a leaner company is helping us execute better and faster,” said Mark Zuckerberg, Meta’s founder and chief executive, on a call with investors on Thursday.

“Moving forward, a major goal will be building the most popular and advanced A.I. products and services,” he added. “If we succeed, everyone who uses our services will have a world-class A.I. assistant to help get things done.”

For the three months ended Dec. 31, Meta’s revenue was $40.1 billion, up from $32.2 billion a year ago and exceeding Wall Street estimates of $39 billion, according to data compiled by FactSet. Profit was $14 billion, up from $4.65 billion a year earlier.

The company benefited from a continued rebound in digital ads, though marketers remain cautious about where they allocate their advertising budgets. On Tuesday, Google reported search revenue and a profit margin for its latest quarter that fell short of Wall Street expectations because of modest advertising growth.

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