META Q1 2024 Earnings

Call Details

• Call Title: Meta Platforms, Inc. Q1 2024 Earnings Call
• Date: April 24, 2024 at 9:00 PM UTC
• Management Team:
  • Mark Zuckerberg (CEO)
  • Susan Li (CFO)
  • Kenneth Dorell (Director of Investor Relations)

Call Summary

Financial Performance

• Q1 total revenue was $36.5B, up 27% year-over-year on both a reported and constant currency basis.
• Q1 total expenses were $22.6B, up 6% year-over-year.
• Q1 operating income was $13.8B, representing a 38% operating margin.
• Net income for the quarter was $12.4B, or $4.71 per share, and the quarter tax rate was 13%.
• Capital expenditures in Q1 were $6.7B, and free cash flow was $12.5B for the quarter.
• Cash and marketable securities ended the quarter at $58.1B with $18.4B of debt, and the company repurchased $14.6B of stock while paying $1.3B in dividends.

Guidance

• Second quarter 2024 total revenue is expected in the range of $36.5B to $39.0B and guidance assumes a 1% foreign currency headwind to year-over-year revenue.
• Full-year 2024 total expenses were updated to a range of $96B to $99B from a prior range of $94B to $99B due to higher infrastructure and legal costs.
• Full-year 2024 capital expenditures are expected to be $35B to $40B, increased from a prior range of $30B to $37B to accelerate infrastructure for AI.
• Reality Labs operating losses are expected to increase meaningfully year over year due to ongoing product development and ecosystem investments.
• Absent tax law changes, the company expects a full-year 2024 tax rate in the mid-teens.
• No guidance was provided beyond 2024, and the company stated CapEx is expected to continue increasing next year to support AI efforts.