Meta Platforms reported better-than-expected sales during the holiday quarter, fuelled by strong demand for advertising as it attracted more users to its Facebook social network.

Revenue for the fourth quarter was US$32.2-billion. That compared to Wall Street estimates of $31.6-billion. Shares jumped more than 18% in extended trading.

CEO Mark Zuckerberg said Meta is making progress with its investments in artificial intelligence, particularly for improving the videos it shows users on Facebook and Instagram. “Beyond this, our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organisation,” he said in a statement on Wednesday.

The company is recovering from the worst year for its stock in history. Meta faced a decline in advertiser demand due to weakness in the broader economy, amid inflation and an ongoing war in Europe, as well as a change in iPhone privacy rules. Meta cut 11 000 jobs, or 13% of the workforce, in November in its first-ever major layoff.

Those cuts came during a quarter that was otherwise positive for the company. Facebook, Meta’s flagship social network, is still growing and now has more than two billion daily users, up more than 70 million from a year ago.

Meta also projected revenue of $26-billion to $28.5-billion for the first quarter, in line with estimates of $27.25-billion. The company also boosted its stock-buyback authorisation by $40-billion, adding to the $10.9-billion remaining from previous repurchase programmes.

Read: Telecoms giants gear up to take on Google, Meta in digital ads

The Menlo Park, California-based company said 2023 expenses will be less than previously forecast. Expenses for the year will be $89-billion to $95-billion, the company said. That could help lessen investor concerns that the company is overspending on its virtual reality ambitions. — (c) 2023 Bloomberg LP