Meta Platforms, Inc., formerly known as Facebook, is a global leader in social media and technology. Founded by Mark Zuckerberg in 2004, the company has since evolved into a conglomerate that owns and operates some of the world’s most popular social networking services, including Facebook, Instagram, WhatsApp, and Messenger. Meta’s mission is to give people the power to build community and bring the world closer together through its suite of apps and technologies.
Over the years, Meta has expanded its focus beyond social networking. The company has made significant investments in virtual reality (VR) and augmented reality (AR) through its Reality Labs division, which develops products like the Oculus VR headset. Meta is also exploring advancements in artificial intelligence (AI) to enhance user experiences across its platforms. This diversified approach has solidified Meta’s position as a leading player in the tech industry.
Meta Fiscal Q3 2024
Meta Platforms, Inc. (META) reported strong financial results for Q3 2024 with a revenue of $40.59 billion, marking a 19% increase year-over-year. The company’s income from operations rose by 26% to $17.35 billion, while net income saw a substantial 35% increase to $15.69 billion. Diluted earnings per share (EPS) also grew by 37% to $6.03. The operating margin expanded to 43%, up from 40% in the same quarter last year.
Operational Highlights
The number of Family Daily Active People (DAP) reached 3.29 billion, a 5% increase year-over-year. Ad impressions across Meta’s Family of Apps grew by 7%, with the average price per ad rising by 11%. Meta’s capital expenditures totaled $9.20 billion, and the company returned $8.86 billion to shareholders through share repurchases. As of September 30, 2024, Meta held $70.90 billion in cash, cash equivalents, and marketable securities, with free cash flow at $15.52 billion. The company’s headcount increased by 9% to 72,404 employees.
Third-Quarter Highlights
- Total Revenue: $40.59 billion, up 19% year-over-year.
- Adjusted EPS: $6.03, beating market expectations.
- Net Profit: $15.69 billion, up 35% year-over-year.
- Capital Expenditures: $9.2 billion.
- Free Cash Flow: $70.9 billion in cash, cash equivalents, and marketable securities.
- Headcount: Up 9% year-over-year to 72,404 as of Sept. 30.
- Family Daily Active People: Up 5% year-over-year to 3.29 billion.
- Ad Impressions: Increased by 7% year-over-year.
- Q4 Revenue Forecast: Between $45 billion and $48 billion.
- Full-Year 2024 Total Expenses: Expected to be between $96 billion and $98 billion.
- Full-Year 2024 Capital Expenditures: Expected to be between $38 billion and $40 billion.
- Reality Labs Operating Loss: Expected to increase meaningfully year-over-year.
Q4 2024 Guidance
Meta’s CFO provided guidance for Q4 2024, expecting total revenue to be in the range of $45-48 billion. Full-year 2024 expenses are projected to be between $96-98 billion. The company anticipates significant capital expenditure growth in 2025, with a focus on expanding infrastructure. Regulatory headwinds in the EU and the U.S. are being closely monitored, as they could impact financial results.
Board Statements
Meta’s CFO emphasized the company’s strong performance and commitment to future growth. “We are pleased with our robust results for Q3 2024, reflecting our ability to drive revenue and profitability. Our investments in AI and VR are positioning us for long-term success. However, we are mindful of the regulatory environment and are prepared to navigate these challenges to continue delivering value to our shareholders.”
“We had a good quarter driven by AI progress across our apps and business,” said Mark Zuckerberg, founder and CEO of Meta. “We also have strong momentum with Meta AI, Llama adoption, and AI-powered glasses.”
Impact on the Stock Market
Following the earnings report, Meta’s stock saw mixed reactions. While the strong financial performance and positive guidance were well-received, concerns about increasing capital expenditures and regulatory challenges led to 3% drop in post market trading. Overall, the market remains optimistic about Meta’s growth trajectory, especially with its focus on AI and VR advancements.
