01—Abstract
Summary
Summary of the 10-Q filed April 25, 2024. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb 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.
02—Key points
Key Highlights
- Total revenue increased 27% year-over-year to $36.46 billion, driven by a 27% increase in advertising revenue.
- Family of Apps (FoA) segment income from operations grew 57% year-over-year to $17.66 billion.
- Daily Active People (DAP) across Meta's Family of Apps increased 7% year-over-year to 3.24 billion on average for March 2024.
- Reality 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.
- Meta Platforms repurchased $14.64 billion of its Class A common stock during the quarter.
- The company initiated its first-ever cash dividend of $0.50 per share, paid in March 2024.
- Capital expenditures for the quarter were $6.72 billion, with full-year 2024 capital expenditure guidance between $35 billion and $40 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Meta Platforms, Inc. kept $0.34.
- Revenue$36.45B100.0%
- Cost of revenue−$6.64B18.2%
- Gross profit$29.82B81.8%
- Operating costs−$16.00B43.9%
- Operating income$13.82B37.9%
- Interest, other & tax−$1.45B4.0%
- Net income$12.37B33.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed April 25, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $36.45B$28.64B | +27.3% |
| Cost of Revenue | $6.64B$6.11B | +8.7% |
| Gross Profit | $29.82B$22.54B | +32.3% |
| R&D Expenses | $9.98B$9.38B | +6.4% |
| Operating Expenses | $22.64B$21.42B | +5.7% |
| Operating Income | $13.82B$7.23B | +91.2% |
| Net Income | $12.37B$5.71B | +116.7% |
| EPS (Basic) | $4.86$2.21 | +119.9% |
| EPS (Diluted) | $4.71$2.20 | +114.1% |
| Shares Outstanding (Basic) | 2.54B2.59B | −1.6% |
| Shares Outstanding (Diluted) | 2.63B2.60B | +1.1% |
05—Questions
Frequently Asked Questions
What was the primary driver of Meta's revenue growth in Q1 2024?
Meta's revenue growth in Q1 2024 was primarily driven by its Family of Apps (FoA) segment, with advertising revenue increasing by 27% year-over-year. This growth was fueled by a 20% increase in ad impressions delivered and a 6% increase in the average price per ad.
What is the current financial status of the Reality Labs segment, and what are the future expectations?
The Reality Labs (RL) segment reported an operating loss of $3.85 billion for Q1 2024. Meta expects these operating losses to increase meaningfully in 2024 as the company continues to invest heavily in its metaverse initiatives and related technologies.
How is Meta returning capital to shareholders?
Meta Platforms is returning capital to shareholders through a significant share repurchase program and, as of Q1 2024, its first-ever cash dividend. During the quarter, the company repurchased $14.64 billion of its Class A common stock and paid a quarterly dividend of $0.50 per share.
What are the key user engagement metrics for Meta's platforms?
Meta Platforms saw continued user engagement growth across its Family of Apps. Daily Active People (DAP) averaged 3.24 billion in March 2024, a 7% increase year-over-year. Average Revenue Per Person (ARPP) for the Family of Apps increased 18% year-over-year to $11.20.
06—Continue