Meta Platforms has announced a better-than-expected sales quarter, as well as a USD$40 billion stock buyback.

The parent of Instagram and Facebook cut its cost outlook for 2023 by $5 billion, and projected first-quarter sales that could beat Wall Street estimates.

Meta stock surged nearly 19% in after-hours trade.

Chief Executive Mark Zuckerberg described the focus on efficiency as part of the natural evolution of the company, calling it a “phase change” for an organisation that once lived by the motto “move fast and break things.”

“We just grew so quickly for like the first 18 years,” Zuckerberg said in a conference call. “It’s very hard to really crank on efficiency while you’re growing that quickly. I just think we’re in a different environment now.”

The cost cuts reflect Meta’s updated plans for lower data centre construction expenses this year.

In November, the company cut more than 11,000 jobs in response, a precursor to the tens of thousands of layoffs in the tech industry that followed.

“Our management theme for 2023 is the ‘Year of Efficiency’ and we are focused on becoming a stronger and more nimble organisation,” Zuckerberg said in a statement.