Meta reported third-quarter revenue of $40.59 billion, beating analyst estimates of $40.29 billion. The company reported third-quarter adjusted earnings of $6.03 per share, beating analyst estimates of $5.25 per share.
Meta’s remarkable AI-powered transformation continues to impress Wall Street as the social media giant delivered another knockout quarter. The company behind Facebook, Instagram, and WhatsApp showed strong growth across all key metrics, proving that its massive AI investments are paying off.
Record-Breaking Numbers Tell the Story Meta’s financial performance exceeded expectations across the board:Revenue soared to $40.59 billion, handily beating Wall Street’s prediction of $40.29 billion.Earnings per share hit $6.03, leaving analysts’ $5.25 estimate in the dust.A stunning 19% year-over-year revenue growth showcases Meta’s renewed momentum, This marks the seventh straight quarter Meta has outperformed analyst expectations – a remarkable achievement that speaks to the company’s resurgence under Mark Zuckerberg’s AI-first strategy. User Growth Remains Strong Despite Market Saturation Despite its massive scale, Meta continues to expand its user base: Daily active users across all apps reached 3.29 billion, up 5% from last year. Ad impressions grew by 7% Advertisers are paying more, with average ad prices jumping 11%. AI Investments Drive Growth While Costs Stay in Check. Meta’s disciplined approach to spending is paying dividends: Operating costs rose just 14% to $23.24 billion, well below revenue growth. Capital expenditure reached $9.2 billion as Meta continues its AI infrastructure buildout. The company maintains a strong balance sheet with $70.9 billion in cash and equivalents Mark Zuckerberg highlighted the company’s AI success: “We had a good quarter driven by AI progress across our apps and business. We also have strong momentum with Meta AI, Llama adoption, and AI-powered glasses.” Looking Ahead: An Even Stronger Q4? Meta’s outlook suggests more good news ahead: Q4 revenue guidance of $45-48 billion points to a strong holiday season 2024 expense outlook tightened to $96-98 billion, showing continued cost discipline. Capital expenditure guidance for 2024 slightly raised to $38-40 billion, reflecting ongoing AI investments What This Means for Investors Meta’s performance demonstrates that its AI transformation is delivering results. The company has successfully navigated challenges like Apple’s privacy changes and economic uncertainty while building new growth engines. With a strong balance sheet, growing user base, and improving ad effectiveness, Meta appears well-positioned for continued success. Meta’s ability to grow revenue while keeping costs in check suggests improving profit margins ahead. Meanwhile, investments in AI Drives strong Q3 and virtual reality point to new potential revenue streams beyond advertising. The Human Side of Meta’s Growth Behind the numbers, Meta’s workforce grew 9% to 72,404 employees – a measured increase that suggests careful hiring focused on key growth areas. This marks a stark contrast to the layoffs of 2022 and indicates the company has found a sustainable balance between growth and efficiency. This performance cements Meta’s position as a leader in both social media and artificial intelligence, with strong execution across its core business while investing heavily in future technologies. The next quarter will be crucial as the company aims to capitalize on holiday season advertising and continue its AI-driven transformation.
