Meta Platforms Inc (META) Q3 2024 Earnings Call Highlights: Strong Revenue Growth Amidst ...

GuruFocus News
4 min read

In This Article:

  • Revenue: $40.6 billion, up 19% year-over-year.

  • Total Expenses: $23.2 billion, up 14% year-over-year.

  • Operating Income: $17.4 billion, representing a 43% operating margin.

  • Net Income: $15.7 billion or $6.03 per share.

  • Capital Expenditures: $9.2 billion.

  • Free Cash Flow: $15.5 billion.

  • Cash and Marketable Securities: $70.9 billion.

  • Debt: $28.8 billion.

  • Family of Apps Revenue: $40.3 billion, up 19% year-over-year.

  • Family of Apps Ad Revenue: $39.9 billion, up 19% year-over-year.

  • Reality Labs Revenue: $270 million, up 29% year-over-year.

  • Reality Labs Operating Loss: $4.4 billion.

  • Employee Count: Over 72,400, up 9% year-over-year.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Meta Platforms Inc (NASDAQ:META) reported a strong quarter with total revenue of $40.6 billion, up 19% year-over-year.

  • The company has seen significant growth in user engagement, with more than 3.2 billion people using at least one of its apps daily.

  • Meta AI has over 500 million monthly active users, contributing to an 8% increase in time spent on Facebook and a 6% increase on Instagram.

  • The company is making progress with its AI-driven initiatives, with over 1 million advertisers using its Generative AI tools to create more than 15 million ads in the last month.

  • Meta Platforms Inc (NASDAQ:META) has a strong cash position, ending the quarter with $70.9 billion in cash and marketable securities.

Negative Points

  • Reality Labs continues to incur significant losses, with a $4.4 billion operating loss in Q3.

  • The company anticipates increased operating losses for Reality Labs in 2024 due to ongoing product development efforts.

  • Meta Platforms Inc (NASDAQ:META) faces regulatory headwinds in the EU and the US, which could impact its business and financial results.

  • The company expects significant capital expenditure growth in 2025, which may impact its financial flexibility.

  • Despite strong revenue growth, the company is still working through its budgeting process for 2025, indicating potential uncertainties in future financial planning.

Q & A Highlights

Q: Can you help us understand some of the more recurring types of interactions or query types you're seeing with Meta AI and whether they have commercial intent? A: Susan Li, CFO: People are using Meta AI for information gathering, help with how-to tasks, and image generation. While our focus is on making Meta AI valuable for users, we anticipate more monetizable queries over time. Meta AI draws from web content and partners with search engines like Bing and Google.

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