Meta, the technology giant formerly known as Facebook, released its financial results for the first quarter of 2024 on Wednesday evening. The company reported revenues of $36.46 billion, representing a 27% increase compared to the same quarter the previous year. Early forecasts had anticipated revenues around $36.1 billion. This marks the fifth consecutive quarter of strong revenue growth for Meta. However, the company stated that it expects revenues in the second quarter to be between $36.5 and $39 billion, with changes in foreign exchange rates potentially impacting revenues by about 1%.
In terms of profitability, Meta reported earnings per share of $4.71, exceeding analysts’ expectations of $4.3 per share. Revenue from advertising amounted to approximately $35.64 billion, slightly surpassing initial forecasts. Additionally, Meta disclosed that it invested approximately $6.72 billion in capital expenditures during the quarter, focusing on the development of artificial intelligence and the metaverse.
The company’s financial success has garnered positive attention from investors, with Meta’s stock soaring by more than 20% following the announcement of dividends in the previous quarter. Meta’s strategic investments in artificial intelligence technologies, such as acquiring Nvidia’s processors and upgrading its chatbot capabilities, highlight its commitment to innovation and growth.
Looking ahead, Meta expects expenses to increase due to investments in infrastructure and legal costs, with forecasts indicating expenses in the range of $96-99 billion for 2024. Despite the potential for increased expenses, Meta remains confident in its long-term growth prospects and is poised to continue leading the charge in the tech industry.
One notable shift in Meta’s reporting strategy is the consolidation of user metrics, now focusing on daily active users across its app family rather than separate counts for Facebook and other applications. This change reflects Meta’s evolving business strategy and emphasis on creating a cohesive user experience across its platforms.
As Meta navigates the challenges and opportunities in the tech landscape, the company’s focus on innovation, strategic investments, and financial performance position it well for continued success in the years to come.