Revenue was up 27% year-over-year to $36.46 billion.

1. This was driven by an increase in advertising revenue, which makes up the bulk of Meta’s business. Advertising revenue grew 28% in Q1, indicating that businesses continue to turn to Meta platforms like Facebook and Instagram to reach customers.
2. Net income increased 117% to $12.37 billion, boosted by Meta’s growth in high-margin businesses like advertising and lower costs. Meta has worked to improve efficiency and control expenses by investing in new initiatives.

Increasing Daily Active People

1. Daily Active People (DAP) across Meta’s family of apps (Facebook, Instagram, WhatsApp, and Messenger) rose 7% year-over-year to 3.24 billion. Facebook’s daily active users were up 6% to 2 billion, while Instagram’s rose 10% to 1.5 billion. User growth is a key metric for Meta’s success, showing that its platforms remain popular and continue to expand globally.
2. Meta said it expects full-year 2024 capital expenditures to be $35-40 billion as it continues to invest in data centers, network infrastructure, and its Reality Labs division. Reality Labs focuses on augmented and virtual reality technologies, which Meta sees as essential parts of the future of social connection and the next era of computing.
3. The strong results in Q1 show that Meta’s business remains healthy thanks to solid user and revenue growth, especially in advertising. While Meta faces competition for users and ad dollars, its platforms continue to thrive, and the company is well-positioned for future growth in virtual and augmented reality areas. The latest earnings report points to Meta’s ongoing success and leadership in social media and technology.

Meta’s Revenue Jumps 27% Year-Over-Year.

You’ve probably noticed that Meta, formerly Facebook, has been making headlines again after releasing their Q1 2024 earnings. The results are in, and it seems Meta’s big bets on the metaverse and AI technologies are starting to pay off.

        i.            Revenue and Income Skyrocket

• Meta’s revenue for the first quarter of 2024 soared 27% to $36.46 billion compared to last year’s quarter. Net income also more than doubled to $12.37 billion, a 117% increase. The gains were driven by Meta’s family of apps and platforms, including Facebook, Instagram, WhatsApp, and others. Not only did Meta add more ads to its apps and increase ad prices, but people spent more time using the apps due to staying at home during the pandemic.

      ii.            Growth in Daily Active People

• Meta’s family of apps reached 3.24 billion daily active people in March 2024, up 7% from the year before. While growth has slowed in North America and Europe, Meta is seeing strong growth in Asia-Pacific and the rest of the world. The company continues to focus on building social experiences that connect people and keep them engaged.

    iii.            Bets on AI and VR Paying Off

• Meta has recently invested heavily in developing artificial intelligence and virtual reality technologies. Revenue from Reality Labs, Meta’s VR segment, grew an impressive 58% to $341 million this quarter. AI has also helped Meta improve ad targeting, content moderation, and user experiences across its platforms.

The results show that even as regulatory pressures mount and competition increases, Meta remains an advertising and tech powerhouse. By continuing to improve experiences, build new tech platforms, and push into emerging areas like virtual reality, Meta aims to generate sustainable growth and profits for years to come. The metaverse may still be a distant vision, but Meta’s current path suggests the company has a bright future ahead.

Net Income More Than Doubles on Revenue Growth

Meta’s net income skyrocketed 117% to $11.22 billion in the first quarter of 2024 compared to $5.18 billion in the same period last year. This massive jump reflects the company’s booming revenue and lower costs.

        i.            Revenue up 27%

• Revenue rose 27% to $29.08 billion, fuelled by an increase in advertising and other business activities. Meta’s apps, including Facebook, Instagram, and WhatsApp, continue to attract more active people and engagement daily, allowing the company to generate higher ad revenue.

      ii.            Lower Costs and Expenses

• Meta’s costs and expenses declined 3% to $16.93 billion compared to last year. The company achieved lower marketing and sales costs and general and administrative expenses. Meta has streamlined its operations and implemented cost-cutting initiatives to improve profitability.

    iii.            Billions of Daily Active People

• Meta’s family of apps reached 3.24 billion daily active people in March, up 8% year-over-year. Facebook alone had 2.87 billion daily active users, an increase of 6% from last year. Instagram surpassed 2 billion monthly active users, highlighting the popularity and growth potential of Meta’s social media platforms.

The stellar first-quarter results show that Meta continues to thrive. With billions of engaged users, a dominant position in mobile and social advertising, and efforts to control costs, the company is poised to achieve further success and shareholder value in the coming years. Meta’s CEO expressed optimism about the company’s future: “We had a strong start to the year. We’re continuing to make progress on our key priorities around community, commerce, and virtual and augmented reality.”

Daily Active People Across the Family of Apps Increased by 7%

Meta reported that the number of daily active people (DAP) who used at least one of the company’s family of apps reached 3.24 billion on average for March 2024, an increase of 7% year-over-year. Facebook DAP was 2.87 billion on average for March 2024, an increase of 6% year-over-year.

        I.            Instagram

• Instagram DAP grew 8% year-over-year to 2 billion in March 2024. The growth was primarily driven by solid engagement in Reels, the company’s short-form video product. Reels continue to gain popularity as more people discover short-form videos. With music and effects, Reels is an engaging format for people to express themselves and connect with friends and interests.

      II.            WhatsApp

• WhatsApp also saw good growth, with DAP increasing 9% year-over-year to 2 billion in March 2024. More people rely on WhatsApp to stay in touch with friends and family. Voice and video calling on WhatsApp continue to grow, especially in Latin America, India, and parts of Europe.

    III.            Messenger

• Messenger DAP was 1.3 billion on average for March 2024, an increase of 3% year-over-year. Messenger remains an important way for people to connect with friends and family. The increase shows that people continue to use Messenger to send messages, make voice and video calls, and share photos and links.

Overall, Meta’s family of apps had a good quarter. The number of people engaging with the company’s apps daily continues to grow steadily. Reels, voice and video calling, and messaging drive much of this growth as more people use the company’s apps to connect with friends and share interests.

Capital Expenditures Projected Between $35-40 Billion This Year

Meta announced they anticipate spending between $35 to $40 billion in capital expenditures for 2024. That’s a lot of dough! Most of these costs are going toward building Meta’s next generation of augmented and virtual reality technologies and artificial intelligence systems.

        I.            Investing in the Metaverse

• A large chunk of change, estimated at around $10 billion, is funneling into Reality Labs, Meta’s augmented and virtual reality division. Meta sees the metaverse as the next evolution of social connection, and they want to be at the forefront of development. The money will be used to improve their current VR headset, the Quest 2, build the next generation of AR glasses, and develop new software experiences.

      II.            AI and Infrastructure

• Meta also invests heavily in artificial intelligence, which powers many products and services. Things like content moderation, facial recognition, and personalized recommendations require complex AI systems to function. Meta’s data centers and computing infrastructure also require constant upgrades to handle the massive amounts of data generated by its platforms.

While $35 to $40 billion seems an enormous investment, Meta believes developing innovative new technologies is critical to their long-term success. If they can build the platforms and tools that will shape the future of human connection, it may well prove to be money well spent. Of course, there is no guarantee of success, and the road ahead is filled with technical challenges and uncertainty. But you have to spend money to make money, as the saying goes, and Meta is betting big on the metaverse.

Long-Term Bets on AI and Metaverse Progressing

Meta’s futuristic technologies are starting to pay off. Their investments in artificial intelligence and virtual reality have recently led to major breakthroughs.

        I.            AI Systems Getting Smarter

• Meta’s AI systems are becoming far more advanced, helping to improve experiences across their products. For example, their computer vision technology can now describe images to visually impaired people with near-human accuracy. Their natural language processing systems have also become far more sophisticated, enabling more natural and engaging conversations.

        II.            Virtual Reality Progressing Rapidly

• Meta’s VR headsets are selling faster than ever before. The latest Quest 2 headset became the first VR device to surpass 10 million shipments. Developers are creating unique VR experiences, from games to fitness apps to virtual workplaces.
   Meta is also developing “horizon worlds,” a virtual universe where people can interact as avatars. While still early, Meta’s vision for an interconnected virtual world, or “metaverse,” is starting to become a reality.

      III.            Monetising the Metaverse

• Meta’s progress in AI, VR, and the metaverse is creating new revenue opportunities. For example, their virtual marketplace allows people to buy digital goods for their VR avatars and virtual homes. Brands are also eager to reach audiences in immersive new ways through virtual product placements, billboards, and sponsorships.

Meta still has a long way to go to fully realize its ambitious vision. But its latest results show that its long-term bets on innovative technologies are really starting to pay off. Advancements in AI and virtual reality suggest an exciting future where people can connect in new ways and experience the world more immersively than ever before. Overall, Meta seems poised to continue pushing the boundaries of human connection through technology.

Summing It Up

So there you have it – Meta’s Q1 2024 results are looking strong. With sizeable jumps in revenue, net income, and daily active users, the company’s strategic pivots seem to be paying off. The future’s bright for Meta as they cement their position as a tech titan. However, only time will tell if they can maintain this positive trajectory in an increasingly competitive landscape. For now, investors and users alike have cause for optimism. Meta’s back, baby!