Meta Q2 2024 Earnings
Posted:![Meta Q2 2024 Earnings](/media/c1gey1bc/meta-earnings-q2-2024.png)
Meta Reports 22% Surge in Q2 Ad Revenue
In the second quarter, Meta reported earnings per share (EPS) of $5.16 and revenue of $39.07 billion.
Meta provided revenue guidance for the third quarter, projecting a range of $38.5 billion to $41 billion, with a midpoint of $39.75 billion.
In the second quarter, Meta reported revenue growth of 22% to $39.07 billion, up from $32 billion a year ago, marking the fourth consecutive quarter of over 20% growth. Net income surged 73% to $ 7 billion, compared to $7.79 billion, or $2.98 per share, in the previous year.
The results highlight Meta’s continued expansion in the digital ad market, its core business. Advertising revenue, primarily from Facebook and Instagram, increased 22% year-over-year. In contrast, rival Alphabet reported an 11% rise in Google ad sales.
Expenses for the second quarter totaled $24.2 billion, including a $1.4 billion charge related to settling a facial recognition data lawsuit with the state of Texas. Capital expenditures were $8.47 billion, below the $9.51 billion anticipated by analysts.
Meta maintained its expense outlook for the year at $96 billion to $99 billion and narrowed its capital expenditure forecast to $37 billion to $40 billion, up from the previous lower end of $35 billion.
User metrics showed 3.27 billion daily active people (DAP) for the quarter, aligning with StreetAccount estimates. This figure represents the total number of people accessing any of Meta’s apps, as opposed to just Facebook and Messenger.
Meta’s financial performance benefited from cost-cutting measures implemented since late 2022, including about 21,000 job cuts across multiple layoffs. Operating income rose 58% year-over-year to $14.9 billion, with the operating margin expanding to 38% from 29%.
As of June 30, Meta’s headcount decreased by 1% year-over-year to 70,799. Despite broad downsizing, Meta has heavily invested in advanced technologies such as artificial intelligence and virtual and augmented reality to support the metaverse. The company has also invested significantly in data center infrastructure and computing resources to maintain a competitive edge.
CEO Mark Zuckerberg commented, “We had a strong quarter, and Meta AI is on track to be the most used AI assistant in the world by the end of the year. We’ve released the first frontier-level open-source AI model, and we continue to see positive traction with our Ray-Ban Meta AI glasses while driving growth across our apps.”
Looking ahead, Meta indicated that while it is refining plans for next year, it expects significant growth in capital expenditures in 2025 to support its artificial intelligence research and product development.
As of Wednesday’s close, Meta shares were up 34% for the year, doubling the gains of the Nasdaq. The stock rose 6.9% to $507.45 in after-hours trading.
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