MICROSTRATEGY AND META RELEASE Q4 EARNINGS The software analytics company reported $132.5 million in revenue, down 1.5% from a year earlier but $2.5 million above analysts’ estimates. The bottom line was another matter, as an expected $10.7 million net profit came in as a $249.67 million loss. There was a $20.52 adjusted loss per share rather than the forecast 98-cent profit, according to Bloomberg data. The outsized loss after a minor beat on sales indicates analysts may not have correctly modeled for a $197.63 million cryptocurrency impairment charge and a $35.3 million tax bite. MicroStrategy’s bitcoin holdings remained at 132,500, the same as in late December, worth roughly $3.2 billion at the current price. Meta’s Q4 revenue was $32.2 billion, higher than the $31.5 billion expected on Wall Street, though still down 4% from last year. But the key figure investors were looking at, according to Mark Shmulik, managing director and senior analyst of U.S. internet at investment manager and researcher AllianceBernstein, was free cash flow, money that can be used to reinvest in the business or pay for dividends and stock buybacks. It came at $5.3 billion, significantly more than the $1.5 billion expected–just what investors needed to justify hefty Reality Labs expenditure. Home to the Horizon World metaverse, the Reality Labs division incurred an operating loss of $4.3 billion, bringing the total shortfall for the year to $13.7 billion. |