Meta, 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. This marks the fifth consecutive quarter of strong revenue growth for Meta.
Early forecasts had anticipated revenues around $36.1 billion, but Meta exceeded expectations with $35.64 billion in revenue from advertising alone. Additionally, the company invested approximately $6.72 billion in capital expenditures during the quarter, focusing on artificial intelligence and metaverse development.
Meta’s financial success has garnered positive attention from investors, with its stock soaring by more than 20% following the announcement of dividends in the previous quarter. Meta’s strategic investments in artificial intelligence technologies have positioned it well for continued growth and innovation in the tech industry.
Looking ahead to Q2, Meta expects revenues to be between $36.5 and $39 billion, with changes in foreign exchange rates potentially impacting revenues by about 1%. Despite potential expenses due to investments in infrastructure and legal costs forecasted at $96-99 billion for 2024, Meta remains confident in its long-term growth prospects and is poised to continue leading the charge in technology innovation.
One notable shift in Meta’s reporting strategy is the consolidation of user metrics 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 challenges and opportunities in technology landscape, its focus on innovation, strategic investments and financial performance position it well for continued success
