On July 31, 2024, Meta Platforms Inc (META, Financial) released its 8-K filing for the quarter ended June 30, 2024. Meta, the world's largest online social network, reported significant growth across its family of apps, which includes Facebook, Instagram, Messenger, and WhatsApp. The company continues to derive over 90% of its revenue from advertising, with a substantial portion coming from the US, Canada, and Europe.
Performance Highlights
Meta Platforms Inc (META, Financial) reported a total revenue of $39.07 billion for Q2 2024, marking a 22% increase year-over-year. This figure surpassed the analyst estimate of $38.31 billion. The company's net income surged by 73% to $13.47 billion, resulting in a diluted earnings per share (EPS) of $5.16, significantly higher than the estimated EPS of $4.71.
Financial Achievements
Meta's operating margin improved to 38% from 29% in the same quarter last year, reflecting efficient cost management and robust revenue growth. The company also reported a free cash flow of $10.90 billion, highlighting its strong cash generation capabilities.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Revenue | $39.07 billion | $31.99 billion | 22% |
| Net Income | $13.47 billion | $7.79 billion | 73% |
| Diluted EPS | $5.16 | $2.98 | 73% |
| Operating Margin | 38% | 29% | 31% |
Operational Highlights
Meta reported a 7% year-over-year increase in Family daily active people (DAP), reaching 3.27 billion in June 2024. Ad impressions across Meta's Family of Apps grew by 10%, and the average price per ad also increased by 10% year-over-year.
Challenges and Outlook
Despite the strong performance, Meta faces ongoing challenges, including regulatory scrutiny in the EU and the US, which could impact its business operations and financial results. The company expects its full-year 2024 expenses to be in the range of $96-99 billion, with significant investments in AI research and product development anticipated to drive expense growth in 2025.
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," said Mark Zuckerberg, Meta founder and CEO. "We've released the first frontier-level open source AI model, we continue to see good traction with our Ray-Ban Meta AI glasses, and we're driving good growth across our apps."
Conclusion
Meta Platforms Inc (META, Financial) has demonstrated robust financial performance in Q2 2024, exceeding analyst estimates and showcasing strong growth across its core metrics. The company's strategic investments in AI and augmented reality, coupled with its dominant position in the online advertising space, position it well for future growth. However, regulatory challenges remain a key risk factor that investors should monitor closely.
Explore the complete 8-K earnings release (here) from Meta Platforms Inc for further details.
