Meta Platforms Inc - Class A
Q4 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: −4.66%.
Did META Beat Earnings? Q4 2024 Results
Meta Platforms delivered a blowout fourth quarter, with earnings per share of $8.02 beating the $6.76 consensus estimate by 18.67% and revenue of $48.38 billion edging past expectations by 2.96% while climbing 20.6% year-over-year. The standout driver was the company's advertising engine, which generated $46.78 billion in Q4 revenue, up 21% from a year ago, fueled by a 6% rise in ad impressions and a 14% increase in average price per ad, all while the Family of Apps segment posted a 60% operating margin. Net income reached $20.84 billion, up 49% year-over-year, as the overall operating margin expanded to 48% from 41% a year prior. With 3.35 billion daily active people across its family of apps and free cash flow of $13.15 billion in the quarter alone, Meta enters 2025 from a position of financial strength, though it is guiding Q1 revenue of $39.50 billion to $41.80 billion amid a roughly 3% foreign currency headwind, while projecting capital expenditures of $60.00 billion to $65.00 billion for the full year as generative AI investment accelerates.
- Ad impressions delivered across Family of Apps increased 6% year-over-year in Q4
- Average price per ad increased 14% year-over-year in Q4
- Family daily active people (DAP) was 3.35 billion, up 5% year-over-year
- Favorable impact of $1.55 billion from decrease in accrued losses for certain legal proceedings in Q4
“We continue to make good progress on AI, glasses, and the future of social media. I'm excited to see these efforts scale further in 2025.”
Meta CEO, on the earnings call
Forward Guidance & Outlook
Meta expects Q1 2025 total revenue of $39.5-41.8 billion, representing 8-15% year-over-year growth (11-18% on a constant currency basis), with foreign currency posing an approximately 3% headwind. The company also noted the effect of lapping leap day in Q1 2024. Full year 2025 total expenses are expected to be $114-119 billion, with infrastructure costs as the single largest driver of expense growth, followed by employee compensation as technical talent is added in infrastructure, monetization, Reality Labs, generative AI, and regulation/compliance. Full year 2025 capital expenditures are projected at $60-65 billion, driven by increased investment in generative AI efforts and core business. The company expects a full year 2025 tax rate of 12-15%. A change in useful life estimates for servers and network assets to 5.5 years is expected to reduce 2025 depreciation by approximately $2.9 billion. Management expects investments in the core business to support continued strong revenue growth throughout 2025.
META YoY Financials
META Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.