Meta Reports Strong Q3 2024 Earnings with 19% Revenue Growth and $15.7 Billion Net Income

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Meta's Q3 2024 earnings report highlights a strong financial performance, surpassing market expectations in several key areas. Here are the detailed specifics:

Revenue and Net Income

Revenue: Meta reported a revenue of $40.6 billion, which is a 19% increase year-over-year and a quarterly record. This figure surpassed the analyst consensus estimate of $40.3 billion.

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Net Income: The net income grew by 35% to $15.7 billion, up from $11.6 billion in the same quarter last year. This growth rate is the lowest year-over-year increase for net income since Q2 2023.

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Earnings Per Share (EPS)

EPS: Meta's earnings per share came in at $6.03, significantly higher than the expected $5.25.

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User Metrics

Daily Active Users (DAUs): The total number of people using Meta's apps daily, including Facebook, Instagram, and WhatsApp, grew by 5% year-over-year to 3.29 billion. However, this figure fell slightly short of analysts' expectations of 3.31 billion.

Advertising Revenue

Advertising Revenue: Meta's advertising business generated $39.9 billion in revenue, marking an 18.7% increase year-over-year. Advertising accounted for 98.3% of Meta's total revenue.

Capital Expenditures and Expenses

Capital Expenditures: Meta raised its capex guidance for the 2024 fiscal year to between $38 billion and $40 billion, up from the previously guided range of $37 billion to $40 billion. The company also warned of a "significant acceleration" in infrastructure expenses growth in 2025.

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Total Expenses: Meta expects its total expenses for the fiscal year 2024 to be in the range of $96 billion to $98 billion, which is lower than the previous guidance of $96 billion to $99 billion.

Reality Labs Performance

Reality Labs: The division responsible for virtual and augmented reality technologies posted an operating loss of $4.4 billion, which was better than the expected $4.68 billion. Sales in this unit increased by 29% year-over-year to $270 million, although this still trailed analysts' expectations of $310.4 million.

Market Reaction

Stock Performance: Meta's stock fell slightly in after-hours trading despite the strong earnings report, likely due to the slightly weaker-than-expected user numbers and the warning about increased infrastructure expenses.

Future Outlook

Fourth Quarter Guidance: Meta expects fourth-quarter revenue to be between $45 billion and $48 billion, with the midpoint of $46.5 billion being higher than the analyst consensus of $46.3 billion.

Key Highlights

AI Investments: CEO Mark Zuckerberg emphasized the company's focus on artificial intelligence, including significant investments in Nvidia's graphics processing units, which have helped improve the core online ad business.
Cost Discipline: Meta has been focusing on cost discipline, with operating expenses growing at a slower rate than revenue, leading to an improvement in operating profit margins.

Overall, Meta's Q3 2024 financial performance was robust, with significant revenue and net income growth, although it faced challenges with user metrics and future expense increases.

Meta Reports Strong Q3 2024 Earnings with 19% Revenue Growth and $15.7 Billion Net Income

Preview

Meta's Q3 2024 earnings report highlights a strong financial performance, surpassing market expectations in several key areas. Here are the detailed specifics:

Revenue and Net Income

Revenue: Meta reported a revenue of $40.6 billion, which is a 19% increase year-over-year and a quarterly record. This figure surpassed the analyst consensus estimate of $40.3 billion.

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Net Income: The net income grew by 35% to $15.7 billion, up from $11.6 billion in the same quarter last year. This growth rate is the lowest year-over-year increase for net income since Q2 2023.

Preview

Earnings Per Share (EPS)

EPS: Meta's earnings per share came in at $6.03, significantly higher than the expected $5.25.

Preview

User Metrics

Daily Active Users (DAUs): The total number of people using Meta's apps daily, including Facebook, Instagram, and WhatsApp, grew by 5% year-over-year to 3.29 billion. However, this figure fell slightly short of analysts' expectations of 3.31 billion.

Advertising Revenue

Advertising Revenue: Meta's advertising business generated $39.9 billion in revenue, marking an 18.7% increase year-over-year. Advertising accounted for 98.3% of Meta's total revenue.

Capital Expenditures and Expenses

Capital Expenditures: Meta raised its capex guidance for the 2024 fiscal year to between $38 billion and $40 billion, up from the previously guided range of $37 billion to $40 billion. The company also warned of a "significant acceleration" in infrastructure expenses growth in 2025.

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Total Expenses: Meta expects its total expenses for the fiscal year 2024 to be in the range of $96 billion to $98 billion, which is lower than the previous guidance of $96 billion to $99 billion.

Reality Labs Performance

Reality Labs: The division responsible for virtual and augmented reality technologies posted an operating loss of $4.4 billion, which was better than the expected $4.68 billion. Sales in this unit increased by 29% year-over-year to $270 million, although this still trailed analysts' expectations of $310.4 million.

Market Reaction

Stock Performance: Meta's stock fell slightly in after-hours trading despite the strong earnings report, likely due to the slightly weaker-than-expected user numbers and the warning about increased infrastructure expenses.

Future Outlook

Fourth Quarter Guidance: Meta expects fourth-quarter revenue to be between $45 billion and $48 billion, with the midpoint of $46.5 billion being higher than the analyst consensus of $46.3 billion.

Key Highlights

AI Investments: CEO Mark Zuckerberg emphasized the company's focus on artificial intelligence, including significant investments in Nvidia's graphics processing units, which have helped improve the core online ad business.
Cost Discipline: Meta has been focusing on cost discipline, with operating expenses growing at a slower rate than revenue, leading to an improvement in operating profit margins.

Overall, Meta's Q3 2024 financial performance was robust, with significant revenue and net income growth, although it faced challenges with user metrics and future expense increases.