Earnings Results
- Q1 total revenue was $36.5 billion, up 27% year-over-year on both a reported and constant currency basis
- Total expenses were $22.6 billion, up 6% compared to last year
- Operating income was $13.8 billion, representing a 38% operating margin
- Net income was $12.4 billion or $4.71 per share
- Family of Apps revenue was $36 billion, up 27% year-over-year
- Reality Labs revenue was $440 million, up 30%, driven by Quest headset sales
Future Guidance
- Q2 2024 total revenue expected to be in the range of $36.5 billion to $39 billion
- Full year 2024 total expenses projected to be $96 billion to $99 billion, increased from prior outlook due to higher infrastructure and legal costs
- Capital expenditures for 2024 anticipated to be $35 billion to $40 billion, increased to support AI roadmap investments
- Full year 2024 tax rate expected to be in the mid-teens
The Q1 2024 earnings report indicates Meta had a strong start to the year, with robust revenue growth of 27% driven by solid performance in both the Family of Apps and Reality Labs segments. This reflects the success of Meta’s diversification strategy.
Meta is making substantial investments in AI and infrastructure to sustain long-term growth and maintain a competitive edge. The increase in projected expenses and capital expenditures for 2024 shows Meta’s significant commitment to AI as a pivotal area for future expansion and innovation.
Overall, the earnings report conveys an optimistic outlook, with Meta well-positioned financially to fund strategic investments in key growth areas like AI while still returning capital to shareholders. However, legal and regulatory headwinds remain a potential risk factor that could impact results.
Notable Quotes
- ”It’s been a good start to the year, both in terms of product momentum and business performance."
- "…scaling business messaging, introducing ads or paid content into AI interactions and enabling people to pay to use bigger AI models and access more compute…"
- "…our strong financial position will allow us to support these investments while also returning capital to shareholders through share repurchases and dividends."
- "We’ve also made good progress on our AI and Metaverse efforts, and that’s where we’re going to focus most of my comments today.”