Meta, formerly known as Facebook, saw its shares jump by 15% in extended trading as it announced better-than-expected fourth-quarter results and its first-ever dividend payment. The results indicate a continued rebound for Meta's online advertising business following a challenging 2022.

In the fourth quarter, Meta's sales surged by 25% compared to the previous year, reaching $40.1 billion. This growth represents the fastest rate of expansion since mid-2021, highlighting the recovery of the online ad market. Furthermore, the company reported a significant decrease of 8% in expenses, amounting to $23.73 billion. These cost-cutting measures have significantly bolstered profitability, with Meta's operating margin more than doubling to 41%.

The strong financial performance translated into impressive earnings for Meta. The company's net income more than tripled to $14 billion, or $5.33 per share, compared to $4.65 billion, or $1.76 per share, in the same period the previous year. These figures surpassed the expectations of analysts.

Meta's user base also continued to grow, with daily active users (DAUs) reaching 2.11 billion and monthly active users (MAUs) hitting 3.07 billion. Both figures exceeded the estimates of experts. Moreover, the company's average revenue per user (ARPU) stood at $13.12, higher than the expected $12.81.

As a result of these positive developments, Meta's stock price showed strong momentum throughout 2023, nearly tripling in value. It reached record levels last week and was up by 12% year-to-date prior to the earnings report. Based on the late-trading price, Meta's market capitalization has now grown to nearly $1.2 trillion.

To reward shareholders, Meta has decided to distribute its first-ever dividend payment. Investors will receive 50 cents per share on March 26. The company's cash and equivalents have reached $65.4 billion by the end of the year, reinforcing its financial strength. Additionally, Meta announced a $50 billion share buyback program.

Looking ahead, Meta expects its first-quarter sales to range between $34.5 billion and $37 billion, surpassing analysts' estimates of $33.8 billion. Meanwhile, the company forecasts expenses for 2024 to be in the range of $94 billion to $99 billion. Meta's headcount as of December 31 stood at 67,317, reflecting a 22% decrease compared to the previous year due to recent layoffs.

CEO Mark Zuckerberg expressed satisfaction with the company's performance, emphasizing the growth of Meta's community and business. Zuckerberg also highlighted the progress made in advancing artificial intelligence (AI) and the metaverse.

Meta's financial recovery has been partly driven by increased spending from Chinese retailers seeking to reach global users. This trend has contributed to the company's improved ad business, which is outpacing its rival, Google. Notably, Meta Finance Chief Susan Li pointed out the significance of business from China in the third-quarter earnings report last October.

Meta's positive financial news comes amid intense scrutiny faced by the company and other tech giants during a Senate hearing on online child safety. CEO Mark Zuckerberg, along with executives from TikTok, X (formerly Twitter), Snap, and Discord, faced tough questioning from lawmakers regarding the handling of child exploitation issues on their platforms. Zuckerberg expressed remorse for the suffering experienced by affected families and acknowledged the need for improved safety measures.

With Meta's strong Q4 results and dividend announcement, the company showcases its resilience and ability to navigate challenges successfully. The positive numbers and investor sentiment bode well for Meta's future growth and its continued dominance in the digital advertising industry.