Summary
Meta Platforms, Inc. (META) reported strong financial results for the first quarter of 2024, demonstrating robust year-over-year growth driven primarily by its Family of Apps (FoA) segment. Total revenue increased by 27% to $36.46 billion, with advertising revenue up 27% due to both higher ad impressions and an improved average price per ad. This growth was supported by a 7% increase in daily active people (DAP) across its platforms, reaching 3.24 billion on average in March 2024. The company also continued its capital return program, repurchasing $14.64 billion in stock and initiating its first-ever cash dividend of $0.50 per share, signaling confidence in its financial health and commitment to shareholder returns. Despite the strong performance in its core advertising business, the Reality Labs (RL) segment continues to operate at a significant loss, with operating losses of $3.85 billion for the quarter. Meta anticipates these losses to increase meaningfully in 2024 as it invests heavily in its long-term metaverse initiatives. Management highlighted ongoing investments in AI across its products to enhance performance and user engagement. While facing continued scrutiny on regulatory and privacy matters, the company's solid revenue growth and operational execution in its core segments provide a strong foundation for future investments and strategic priorities.
Financial Highlights
50 data points| Revenue | $36.45B |
| Cost of Revenue | $6.64B |
| Gross Profit | $29.82B |
| R&D Expenses | $9.98B |
| Operating Expenses | $22.64B |
| Operating Income | $13.82B |
| Net Income | $12.37B |
| EPS (Basic) | $4.86 |
| EPS (Diluted) | $4.71 |
| Shares Outstanding (Basic) | 2.54B |
| Shares Outstanding (Diluted) | 2.63B |
Key Highlights
- 1Total revenue increased 27% year-over-year to $36.46 billion, driven by a 27% increase in advertising revenue.
- 2Family of Apps (FoA) segment income from operations grew 57% year-over-year to $17.66 billion.
- 3Daily Active People (DAP) across Meta's Family of Apps increased 7% year-over-year to 3.24 billion on average for March 2024.
- 4Reality Labs (RL) segment reported an operating loss of $3.85 billion, with expectations for these losses to increase meaningfully in 2024 due to metaverse investments.
- 5Meta Platforms repurchased $14.64 billion of its Class A common stock during the quarter.
- 6The company initiated its first-ever cash dividend of $0.50 per share, paid in March 2024.
- 7Capital expenditures for the quarter were $6.72 billion, with full-year 2024 capital expenditure guidance between $35 billion and $40 billion.