Meta Platforms Inc. reported better-than-expected sales during the holiday quarter, fueled 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 with Wall Street estimates of US$31.6 billion. Shares jumped more than 18 per cent  in extended trading.

Chief Executive Officer 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 organization,” he said in a statement 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 per cent  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 2 billion daily users, up more than 70 million from a year ago.

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

The Menlo Park, California-based company said 2023 expenses will be less than previously forecast. Expenses for the year will be US$89 billion to US$95 billion, the company said Wednesday. That could help lessen investor concerns that the company is over-spending on its virtual reality ambitions.