Meta, the parent company of popular social media platforms, reported a 19% increase in revenue to $40.6 billion in the third quarter ending on September 30, 2024. The growth in revenue was attributed to advancements in Artificial Intelligence technology and a rise in ad rates, demonstrating one of Meta’s strongest performances in the year.
The company’s revenue surge, up from $34.1 billion in the previous year, was fueled by a 7% increase in ad impressions and an 11% rise in the average price per ad. CEO Mark Zuckerberg highlighted the progress in AI across Meta’s products, including Meta AI, Llama, and AI-powered smart glasses.
Operating income for Meta rose to $17.4 billion from $13.7 billion in the previous year, with an improved operating margin of 43%. The company also reported a net income of $15.7 billion, up from $11.6 billion in Q3 2023, with diluted earnings per share increasing to $6.03 from $4.39.
Meta’s daily active user base reached 3.29 billion in September, a 5% year-over-year increase, as users continued engaging with platforms like Facebook, Instagram, and WhatsApp. The company’s operating costs grew by 14% to $23.2 billion, partly due to increased investments in AI technology.
With a workforce of 72,404 employees as of September 30, Meta’s ongoing AI investments aim to sustain its competitive edge in the tech industry, supported by a growing user base and a surge in ad revenue. The company expects total revenue in the fourth quarter of 2024 to be between $45-48 billion.
In terms of expenses, Meta anticipates full-year 2024 expenses to range from $96-98 billion, with increased operating losses for Reality Labs due to product development efforts. Capital expenditures for 2024 are projected to be between $38-40 billion, with significant growth expected in 2025. The company foresees a considerable rise in infrastructure expenses next year, reflecting higher growth in depreciation and operational costs related to the expanded infrastructure fleet.