Meta Platforms (Nasdaq: META) reported its Q3 2024 earnings after market close, showcasing a strong financial performance.
Results surpassed market expectations.
Largely driven by advancements in artificial intelligence (AI) and robust ad revenue growth, Meta’s revenue reached US$40.6bn, marking a 19% year-over-year increase and slightly exceeding the projected US$40.3bn. Earnings per share (EPS) came in at US$6.03, above the anticipated US$5.23, with net income climbing by 35% to US$15.69bn. Meta’s digital ad business remains a key driver, with ad impressions up by 7% and average ad prices rising 11%, boosted by AI-enhanced ad placements and improved targeting.
A major aspect of the report is Meta’s ongoing AI investments, including tools such as Meta AI and Llama models, which have elevated user engagement and ad performance across its platforms. Meta AI enables personalised ad targeting, while the Llama models serve as robust language models designed to refine Meta’s natural language processing capabilities, driving smarter interactions with users.
However, the Reality Labs division, focusing on AR and VR projects, continues to operate at a loss, reporting a US$4.4bn deficit for the quarter. This highlights Meta’s commitment to its metaverse ambitions despite significant financial challenges in that area.
Looking ahead, Meta forecasts Q4 revenue between US$45bn and US$48bn, though executives remain wary of regulatory challenges in both the EU and the US, which could affect future operations.
