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Meta Reports First Quarter 2024 Results

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Meta Platforms, Inc. (Nasdaq: META) reported strong financial results for the first quarter of 2024, with revenue reaching $36.45 billion, a 27% increase year-over-year. Net income surged by 117%, reaching $12.37 billion, and diluted EPS grew by 114% to $4.71. The company's operational highlights include a 7% increase in daily active people, a 20% rise in ad impressions, and a 6% increase in average price per ad. Meta's CFO outlook anticipates total revenue for Q2 to be $36.5-39 billion, and full-year expenses to be $96-99 billion. The company is focusing on AI and Reality Labs initiatives for future growth.
Meta Platforms, Inc. (Nasdaq: META) ha riportato risultati finanziari eccellenti per il primo trimestre del 2024, con un fatturato di 36,45 miliardi di dollari, in aumento del 27% rispetto all'anno precedente. L'utile netto è cresciuto del 117%, raggiungendo i 12,37 miliardi di dollari, e l'EPS diluito è aumentato del 114% arrivando a 4,71 dollari. Tra i punti salienti dell'operatività aziendale, si segnalano un incremento del 7% nelle persone attive quotidianamente, un aumento del 20% nelle impressioni pubblicitarie e un rialzo del 6% nel prezzo medio per annuncio. Le previsioni del CFO di Meta per il totale dei ricavi del secondo trimestre sono di 36,5-39 miliardi di dollari, con spese annue previste tra i 96 e i 99 miliardi di dollari. L'azienda sta puntando sulle iniziative di intelligenza artificiale e sui laboratori di realtà aumentata per la crescita futura.
Meta Platforms, Inc. (Nasdaq: META) reportó resultados financieros sólidos para el primer trimestre de 2024, con ingresos alcanzando los 36,45 mil millones de dólares, un incremento del 27% respecto al año anterior. La utilidad neta aumentó un 117%, alcanzando los 12,37 mil millones de dólares, y el EPS diluido creció un 114% hasta llegar a 4,71 dólares. Los puntos destacados de la operación incluyen un aumento del 7% en personas activas diariamente, un aumento del 20% en impresiones publicitarias, y un incremento del 6% en el precio promedio por anuncio. La perspectiva del CFO de Meta anticipa ingresos totales para el segundo trimestre de entre 36,5 y 39 mil millones de dólares, y gastos anuales previstos de entre 96 y 99 mil millones de dólares. La compañía está enfocada en iniciativas de inteligencia artificial y laboratorios de Realidad para el crecimiento futuro.
메타 플랫폼(Meta Platforms, Inc., 나스닥: META)은 2024년 첫 분기에 강력한 재무 결과를 보고했습니다. 매출은 364억 5천만 달러로 전년 대비 27% 증가했습니다. 순이익은 117% 증가한 123억 7천만 달러에 달했으며 희석 주당이익(EPS)은 114% 증가해 4.71달러를 기록했습니다. 회사의 운영 하이라이트로는 일일 활성 사용자 수 7% 증가, 광고 노출 수 20% 증가, 광고당 평균 가격 6% 상승이 있습니다. 메타의 CFO는 2분기 총 수익이 365억에서 390억 달러, 연간 비용이 960억에서 990억 달러가 될 것으로 전망합니다. 회사는 인공지능 및 리얼리티 랩스 이니셔티브에 중점을 두고 미래 성장을 겨냥하고 있습니다.
Meta Platforms, Inc. (Nasdaq: META) a rapporté d'excellents résultats financiers pour le premier trimestre de 2024, avec un chiffre d'affaires atteignant 36,45 milliards de dollars, soit une augmentation de 27% par rapport à l'année précédente. Le bénéfice net a augmenté de 117%, atteignant 12,37 milliards de dollars, et l'EPS dilué a augmenté de 114% pour atteindre 4,71 dollars. Les points forts de l'opération comprennent une augmentation de 7% du nombre de personnes actives quotidiennement, une hausse de 20% des impressions publicitaires, et une augmentation de 6% du prix moyen par annonce. Les prévisions du CFO de Meta anticipent un chiffre d'affaires total pour le deuxième trimestre entre 36,5 et 39 milliards de dollars, et des dépenses annuelles prévues entre 96 et 99 milliards de dollars. L'entreprise se concentre sur les initiatives d'IA et de Reality Labs pour la croissance future.
Meta Platforms, Inc. (Nasdaq: META) meldete starke Finanzergebnisse für das erste Quartal 2024, mit einem Umsatz von 36,45 Milliarden Dollar, was einem Anstieg von 27% gegenüber dem Vorjahr entspricht. Der Nettogewinn stieg um 117% auf 12,37 Milliarden Dollar, und der verwässerte Gewinn pro Aktie (EPS) wuchs um 114% auf 4,71 Dollar. Zu den Betriebshighlights gehören ein Anstieg der täglich aktiven Nutzer um 7%, ein 20%iger Anstieg der Werbeeindrücke und eine 6%ige Steigerung des durchschnittlichen Werbepreises. Die Finanzaussichten des CFO von Meta sehen die Gesamteinnahmen für das zweite Quartal zwischen 36,5 und 39 Milliarden Dollar und die Gesamtausgaben für das Jahr zwischen 96 und 99 Milliarden Dollar vor. Das Unternehmen konzentriert sich auf KI- und Reality Labs-Initiativen für zukünftiges Wachstum.
Positive
  • Revenue for Q1 2024 was $36.45 billion, a 27% increase from the previous year.
  • Net income for the quarter surged by 117% to $12.37 billion.
  • Diluted EPS grew by 114% to $4.71.
  • Daily active people increased by 7% year-over-year.
  • Ad impressions rose by 20%, and average price per ad increased by 6%.
  • CFO outlook expects Q2 revenue to be $36.5-39 billion and full-year expenses to be $96-99 billion.
  • Focus on AI and Reality Labs initiatives for future growth.
Negative
  • Operating margin decreased from 38% to 25% year-over-year.
  • Headcount decreased by 10% year-over-year to 69,329.
  • Increasing legal and regulatory headwinds in the EU and the U.S. could impact business and financial results.
  • Concerns about ongoing product development efforts and operating losses in Reality Labs.

Insights

Meta Platforms, Inc. reported a 27% increase in revenue for Q1 2024, signaling a robust financial position that surpassed the previous year's performance. The expansion of their advertising base, with a 20% increase in ad impressions and a 6% rise in the average price per ad, reflects strong demand for its advertising services and an efficient monetization strategy. However, investors should be cautious about the 10% reduction in headcount, as it could indicate cost-cutting measures or a strategic shift in operations. The 91% surge in income from operations is remarkable, but it's imperative to assess whether this is due to sustainable operational efficiencies or one-time cost reductions. With a 114% increase in diluted EPS, Meta seems to be providing substantial shareholder value, but the real test will be its ability to maintain these margins in the face of rising infrastructure and legal costs, as indicated by the updated expense outlook.

A critical point for investors to note is Meta's ongoing investment in AI and the metaverse, as evidenced by increased capital expenditures, which are projected to be between $35-40 billion. While these investments could position Meta at the forefront of emerging technologies, they are also expected to lead to heightened operating losses for Reality Labs. The potential for transformative products could be significant, but the timeline for monetization remains uncertain. The projected increase in legal and regulatory costs, particularly due to the volatile regulatory landscape in the EU and the US, presents additional risks that could affect future profitability and necessitate close monitoring by investors.

Investors should pay special attention to Meta's mention of the active regulatory landscape and the possibility of significant impacts on business due to legal and regulatory headwinds. Regulatory scrutiny in the tech sector has been intensifying and any adverse regulatory changes could enforce limitations on Meta's data practices and advertising model, potentially inhibiting revenue growth. The anticipation of a tax rate in the mid-teens is another point of concern, as variations to the tax landscape could materially affect net income. The complexity of navigating this environment requires a keen understanding of international laws and regulations, which are subject to change and can have a profound impact on Meta's operations and financial outcomes.

MENLO PARK, Calif., April 24, 2024 /PRNewswire/ -- Meta Platforms, Inc. (Nasdaq: META) today reported financial results for the quarter ended March 31, 2024.

"It's been a good start to the year," said Mark Zuckerberg, Meta founder and CEO. "The new version of Meta AI with Llama 3 is another step towards building the world's leading AI. We're seeing healthy growth across our apps and we continue making steady progress building the metaverse as well."

 

First Quarter 2024 Financial Highlights




Three Months Ended March 31,


% Change

In millions, except percentages and per share amounts



2024


2023


Revenue



$               36,455


$               28,645


27 %

Costs and expenses



22,637


21,418


6 %

Income from operations



$               13,818


$                 7,227


91 %

Operating margin



38 %


25 %



Provision for income taxes



$                 1,814


$                 1,598


14 %

Effective tax rate



13 %


22 %



Net income



$               12,369


$                 5,709


117 %

Diluted earnings per share (EPS)



$                   4.71


$                   2.20


114 %

 

First Quarter 2024 Operational and Other Financial Highlights

  • Family daily active people (DAP) – DAP was 3.24 billion on average for March 2024, an increase of 7% year-over-year.
  • Ad impressions – Ad impressions delivered across our Family of Apps increased by 20% year-over-year.
  • Average price per ad – Average price per ad increased by 6% year-over-year.
  • Revenue – Total revenue and revenue on a constant currency basis were $36.46 billion and $36.35 billion, respectively, both of which increased by 27% year-over-year.
  • Costs and expenses – Total costs and expenses were $22.64 billion, an increase of 6% year-over-year.
  • Capital expenditures – Capital expenditures, including principal payments on finance leases, were $6.72 billion.
  • Capital return program – Share repurchases were $14.64 billion of our Class A common stock and dividends payments were $1.27 billion.
  • Cash, cash equivalents, and marketable securities – Cash, cash equivalents, and marketable securities were $58.12 billion as of March 31, 2024. Free cash flow was $12.53 billion.
  • Headcount – Headcount was 69,329 as of March 31, 2024, a decrease of 10% year-over-year.

 

CFO Outlook Commentary

We expect second quarter 2024 total revenue to be in the range of $36.5-39 billion. Our guidance assumes foreign currency is a 1% headwind to year-over-year total revenue growth, based on current exchange rates.

We expect full-year 2024 total expenses to be in the range of $96-99 billion, updated from our prior outlook of $94-99 billion due to higher infrastructure and legal costs. For Reality Labs, we continue to expect operating losses to increase meaningfully year-over-year due to our ongoing product development efforts and our investments to further scale our ecosystem.

We anticipate our full-year 2024 capital expenditures will be in the range of $35-40 billion, increased from our prior range of $30-37 billion as we continue to accelerate our infrastructure investments to support our artificial intelligence (AI) roadmap. While we are not providing guidance for years beyond 2024, we expect capital expenditures will continue to increase next year as we invest aggressively to support our ambitious AI research and product development efforts.

Absent any changes to our tax landscape, we expect our full-year 2024 tax rate to be in the mid-teens.

In addition, we continue to monitor an active regulatory landscape, including the increasing legal and regulatory headwinds in the EU and the U.S. that could significantly impact our business and our financial results.

Q1 was a good start to the year. We're seeing strong momentum within our Family of Apps and are making important progress on our longer-term AI and Reality Labs initiatives that have the potential to transform the way people interact with our services over the coming years.

 

Webcast and Conference Call Information

Meta will host a conference call to discuss the results at 2:00 p.m. PT / 5:00 p.m. ET today. The live webcast of Meta's earnings conference call can be accessed at investor.fb.com, along with the earnings press release, financial tables, and slide presentation. Meta uses the investor.fb.com and about.fb.com/news/ websites as well as Mark Zuckerberg's Facebook Page (facebook.com/zuck), Instagram account (instagram.com/zuck) and Threads profile (threads.net/zuck) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Following the call, a replay will be available at the same website. Transcripts of conference calls with publishing equity research analysts held today will also be posted to the investor.fb.com website.

 

About Meta

Meta builds technologies that help people connect, find communities, and grow businesses. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram, and WhatsApp further empowered billions around the world. Now, Meta is moving beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology.

 

Contacts

Investors:
Kenneth Dorell
investor@meta.com / investor.fb.com

Press:
Ryan Moore
press@meta.com / about.fb.com/news/

 

Forward-Looking Statements

This press release contains forward-looking statements regarding our future business plans and expectations. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: the impact of macroeconomic conditions on our business and financial results, including as a result of geopolitical events; our ability to retain or increase users and engagement levels; our reliance on advertising revenue; our dependency on data signals and mobile operating systems, networks, and standards that we do not control; changes to the content or application of third-party policies that impact our advertising practices; risks associated with new products and changes to existing products as well as other new business initiatives, including our artificial intelligence initiatives and metaverse efforts; our emphasis on community growth and engagement and the user experience over short-term financial results; maintaining and enhancing our brand and reputation; our ongoing privacy, safety, security, and content review efforts; competition; risks associated with government actions that could restrict access to our products or impair our ability to sell advertising in certain countries; litigation and government inquiries; privacy, legislative, and regulatory concerns or developments; risks associated with acquisitions; security breaches; our ability to manage our scale and geographically-dispersed operations; and market conditions or other factors affecting the payment of dividends. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption "Risk Factors" in our Annual Report on Form 10-K filed with the SEC on February 2, 2024, which is available on our Investor Relations website at investor.fb.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. In addition, please note that the date of this press release is April 24, 2024, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

For a discussion of limitations in the measurement of certain of our community metrics, see the section entitled "Limitations of Key Metrics and Other Data" in our most recent quarterly or annual report filed with the SEC.

 

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: revenue excluding foreign exchange effect, advertising revenue excluding foreign exchange effect, and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.

We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.

Our non-GAAP financial measures are adjusted for the following items:

Foreign exchange effect on revenue. We translated revenue for the three months ended March 31, 2024 using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar, which we believe is a useful metric that facilitates comparison to our historical performance.

Purchases of property and equipment; Principal payments on finance leases. We subtract both purchases of property and equipment, net of proceeds and principal payments on finance leases in our calculation of free cash flow because we believe that these two items collectively represent the amount of property and equipment we need to procure to support our business, regardless of whether we procure such property or equipment with a finance lease. We believe that this methodology can provide useful supplemental information to help investors better understand underlying trends in our business. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures.

For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Reconciliation of GAAP to Non-GAAP Results" table in this press release.

 

META PLATFORMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except per share amounts)

(Unaudited)


Three Months Ended March 31,


2024


2023

Revenue

$                  36,455


$                  28,645

Costs and expenses:




Cost of revenue

6,640


6,108

Research and development

9,978


9,381

Marketing and sales

2,564


3,044

General and administrative

3,455


2,885

Total costs and expenses

22,637


21,418

Income from operations

13,818


7,227

Interest and other income, net

365


80

Income before provision for income taxes

14,183


7,307

Provision for income taxes

1,814


1,598

Net income

$                   12,369


$                     5,709

Earnings per share:




Basic

$                       4.86


$                       2.21

Diluted

$                       4.71


$                       2.20

Weighted-average shares used to compute earnings per share:                                                  




Basic

2,545


2,587

Diluted

2,625


2,596

 

META PLATFORMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)


March 31, 2024


December 31, 2023

Assets




Current assets:




Cash and cash equivalents

$                  32,307


$                  41,862

Marketable securities

25,813


23,541

Accounts receivable, net

13,430


16,169

Prepaid expenses and other current assets

3,780


3,793

Total current assets

75,330


85,365

Non-marketable equity securities

6,218


6,141

Property and equipment, net

98,908


96,587

Operating lease right-of-use assets

13,555


13,294

Goodwill

20,654


20,654

Other assets

8,179


7,582

Total assets

$                222,844


$                229,623





Liabilities and stockholders' equity




Current liabilities:




Accounts payable

$                    3,785


$                    4,849

Operating lease liabilities, current

1,676


1,623

Accrued expenses and other current liabilities                                                                                 

22,640


25,488

Total current liabilities

28,101


31,960

Operating lease liabilities, non-current

17,570


17,226

Long-term debt

18,387


18,385

Long-term income taxes

7,795


7,514

Other liabilities

1,462


1,370

Total liabilities

73,315


76,455

Commitments and contingencies




Stockholders' equity:




Common stock and additional paid-in capital

75,391


73,253

Accumulated other comprehensive loss

(2,655)


(2,155)

Retained earnings

76,793


82,070

Total stockholders' equity

149,529


153,168

Total liabilities and stockholders' equity

$                222,844


$                229,623

 

META PLATFORMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)


Three Months Ended March 31,


2024


2023

Cash flows from operating activities




Net income

$                  12,369


$                    5,709

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

3,374


2,524

Share-based compensation

3,562


3,051

Deferred income taxes

(456)


(620)

Impairment charges for facilities consolidation, net

240


770

Other

(66)


(7)

Changes in assets and liabilities:




Accounts receivable

2,520


2,546

Prepaid expenses and other current assets

100


821

Other assets

(94)


30

Accounts payable

(1,112)


(1,104)

Accrued expenses and other current liabilities

(1,274)


94

Other liabilities

83


184

Net cash provided by operating activities

19,246


13,998

Cash flows from investing activities




Purchases of property and equipment, net

(6,400)


(6,823)

Purchases of marketable debt securities

(6,887)


(85)

Sales and maturities of marketable debt securities

4,625


534

Acquisitions of businesses and intangible assets

(72)


(444)

Other investing activities


75

Net cash used in investing activities

(8,734)


(6,743)

Cash flows from financing activities




Taxes paid related to net share settlement of equity awards

(3,162)


(1,009)

Repurchases of Class A common stock

(15,008)


(9,365)

Dividends payments

(1,273)


Principal payments on finance leases

(315)


(264)

Other financing activities

(9)


122

Net cash used in financing activities

(19,767)


(10,516)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash                               

(288)


85

Net decrease in cash, cash equivalents, and restricted cash

(9,543)


(3,176)

Cash, cash equivalents, and restricted cash at beginning of the period

42,827


15,596

Cash, cash equivalents, and restricted cash at end of the period

$                  33,284


$                  12,420





Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets

Cash and cash equivalents

$                  32,307


$                  11,551

Restricted cash, included in prepaid expenses and other current assets

84


224

Restricted cash, included in other assets

893


645

Total cash, cash equivalents, and restricted cash

$                  33,284


$                  12,420

 

META PLATFORMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)


Three Months Ended March 31,


2024


2023

Supplemental cash flow data




Cash paid for income taxes, net

$                        630


$                        405

Cash paid for interest, net of amounts capitalized

$                        121


$                        182

Non-cash investing and financing activities:




Property and equipment in accounts payable and accrued expenses and other current liabilities

$                     4,217


$                     4,466

Acquisition of businesses in accrued expenses and other current liabilities and other liabilities

$                        116


$                        263

 

Segment Results

We report our financial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes our virtual, augmented, and mixed reality related consumer hardware, software, and content.

The following table presents our segment information of revenue and income (loss) from operations:

Segment Information

(In millions)

(Unaudited)


Three Months Ended March 31,


2024


2023

Revenue:




Advertising

$                  35,635


$                  28,101

Other revenue

380


205

Family of Apps

36,015


28,306

Reality Labs

440


339

Total revenue

$                  36,455


$                  28,645





Income (loss) from operations:




Family of Apps

$                  17,664


$                  11,219

Reality Labs

(3,846)


(3,992)

Total income from operations                                                                                                         

$                  13,818


$                    7,227

 

Reconciliation of GAAP to Non-GAAP Results

(In millions, except percentages)

(Unaudited)


Three Months Ended March 31,


2024


2023

GAAP revenue

$              36,455


$                  28,645

Foreign exchange effect on 2024 revenue using 2023 rates

(106)



Revenue excluding foreign exchange effect

$              36,349



GAAP revenue year-over-year change %

27 %



Revenue excluding foreign exchange effect year-over-year change %

27 %



GAAP advertising revenue

$              35,635


$                  28,101

Foreign exchange effect on 2024 advertising revenue using 2023 rates

(105)



Advertising revenue excluding foreign exchange effect

$              35,530



GAAP advertising revenue year-over-year change %

27 %



Advertising revenue excluding foreign exchange effect year-over-year change %                              

26 %







Net cash provided by operating activities

$              19,246


$                  13,998

Purchases of property and equipment, net

(6,400)


(6,823)

Principal payments on finance leases

(315)


(264)

Free cash flow

$              12,531


$                    6,911

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/meta-reports-first-quarter-2024-results-302126633.html

SOURCE Meta

FAQ

What was Meta's revenue for the first quarter of 2024?

Meta's revenue for Q1 2024 was $36.45 billion, a 27% increase year-over-year.

How much did Meta's net income grow in the first quarter of 2024?

Meta's net income surged by 117% in Q1 2024, reaching $12.37 billion.

What was the diluted EPS for Meta in the first quarter of 2024?

Meta's diluted EPS grew by 114% to $4.71 in Q1 2024.

What was the percentage increase in daily active people for Meta in the first quarter of 2024?

Meta saw a 7% increase in daily active people year-over-year in Q1 2024.

What was the change in ad impressions for Meta in the first quarter of 2024?

Ad impressions for Meta increased by 20% in Q1 2024.

What is Meta's revenue guidance for the second quarter of 2024?

Meta expects Q2 2024 revenue to be in the range of $36.5-39 billion.

What are Meta's focus areas for future growth according to the CFO outlook?

Meta is focusing on AI and Reality Labs initiatives for future growth.

How many headcounts did Meta have as of March 31, 2024?

Meta had 69,329 headcounts as of March 31, 2024, a 10% decrease year-over-year.

What are the potential impacts of legal and regulatory headwinds on Meta's business?

Increasing legal and regulatory headwinds in the EU and the U.S. could significantly impact Meta's business and financial results.

What are the concerns regarding Reality Labs in Meta's financial outlook?

Concerns include ongoing product development efforts and anticipated operating losses in Reality Labs.

Meta Platforms, Inc.

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