Meta Platforms Reports Strong Q2 2024 Financial Results and Exciting Future Prospects

MENLO PARK, Calif., July 31, 2024 (PRNewswire) — Meta Platforms, Inc. (Nasdaq: META) has announced impressive financial results for Q2 2024, ending June 30, 4. Mark Zuckerberg, Meta's founder and CEO, highlighted significant milestones, including the success of Meta AI and the Ray-Ban Meta AI glasses.

Key Financial Highlights for Q2 2024

• Revenue: Meta reported a total revenue of $39.07 billion, a 22% increase compared to $31.99 billion in Q2 2023.
• Costs and Expenses: Total costs and expenses amounted to $24.22 billion, up 7% from $22.61 billion in the previous year.
• Income from Operations: Income from operations surged by 58% to $14.85 billion, compared to $9.39 billion in Q2 2023.
• Operating Margin: The operating margin improved to 38%, up from 29% last year.
• Net Income: Net income saw a remarkable 73% increase, reaching $13.47 billion, up from $7.79 billion.
• EPS: Diluted earnings per share (EPS) were $5.16, a significant rise from $2.98 in Q2 2023.

Operational Highlights

• Family Daily Active People (DAP): DAP reached 3.27 billion on average for June 2024, marking a 7% year-over-year increase.
• Ad Impressions: There was a 10% year-over-year increase in ad impressions across Meta’s Family of Apps.
• Average Price per Ad: The average price per ad increased by 10% year-over-year.

Financial Operations and Cash Flow

• Capital Expenditures: Capital expenditures, including principal payments on finance leases, were $8.47 billion.
• Capital Return Program: Share repurchases totaled $6.32 billion, with dividend payments at $1.27 billion.
• Cash and Equivalents: Meta held $58.08 billion in cash, cash equivalents, and marketable securities as of June 30, 2024.
• Free Cash Flow: The free cash flow for Q2 2024 was $10.90 billion.
• Headcount: The headcount was 70,799, a 1% decrease year-over-year.

CFO Outlook Commentary

Meta projects Q3 2024 revenue to be between $38.5 billion and $41 billion, factoring in a 2% foreign currency headwind. Full-year 2024 expenses are expected to remain between $96 billion and $99 billion. Reality Labs' operating losses are anticipated to increase due to continued product development. For 2024, capital expenditures are forecasted to be between $37 billion and $40 billion, with further growth expected in 2025 to support AI research and development.

After-Market Performance

Following the announcement of these strong results, Meta's stock price rose by 7.17% in after-market trading, reflecting investor confidence in the company's performance and future prospects.

Conference Call Insights

During the Q2 2024 earnings conference call, Zuckerberg and CFO Susan Li provided deeper insights into Meta's strategic direction and technological advancements:

Mark Zuckerberg's Key Points:

• User Engagement: Zuckerberg highlighted the growth of Meta's user base, noting more than 3.2 billion daily active users across Meta's apps. He emphasized the increased traction in the U.S., especially with young adults on Facebook.
• Threads and AI: Threads is nearing 200 million monthly active users, showcasing significant engagement growth. Zuckerberg also emphasized AI's role in improving content recommendations and ad experiences, predicting AI will evolve Meta’s advertising services by generating and personalizing ad content.
• Meta AI and AI Studio: Meta AI is projected to become the most used AI assistant by the end of the year. AI Studio, a platform for creating custom AI agents, is expected to be valuable for creators and businesses, enhancing engagement and operational efficiency.
• Open Source AI: The release of Llama 3.1, the first frontier-level open source model, positions Meta at the forefront of AI innovation. Zuckerberg stressed the importance of open source for safer, faster innovation and shared prosperity.
• Metaverse and AI: Advances in AI are accelerating Meta's metaverse efforts, with the success of Ray-Ban Meta glasses and Quest 3 sales exceeding expectations. The upcoming Connect conference in September will provide more updates on these initiatives.

Susan Li's Financial Highlights:

• Revenue and Expenses: Q2 2024 revenue was $39.1 billion, up 22%, with total expenses at $24.2 billion. Operating income was $14.8 billion, representing a 38% operating margin. Net income was $13.5 billion, or $5.16 per share.
• Ad Revenue and CapEx: Ad revenue growth was driven by increased ad impressions and prices. Capital expenditures were primarily invested in servers, data centers, and network infrastructure. Li emphasized a flexible approach to AI infrastructure investments to maximize returns.
• Future Outlook: Meta expects significant growth in AI and Reality Labs investments, with a focus on infrastructure to support generative AI research and product development. Headcount is anticipated to increase to support these priorities.

Source: META