META Q1 2025 Earnings

Call Details

• Call Title: Meta Platforms, Inc. Q1 2025 Earnings Call
• Date: April 30, 2025 at 9:00 PM UTC
• Management Team:
  • Kenneth Dorell (Director of Investor Relations)
  • Mark Zuckerberg (CEO)
  • Susan Li (CFO)

Call Summary

Financial Performance

• Q1 total revenue was $42.3B, up 16% year over year and up 19% on a constant currency basis.
• Q1 total expenses were $24.8B, up 9% year over year.
• Q1 operating income was $17.6B, representing a 41% operating margin for the quarter.
• Q1 free cash flow was $10.3B and the company ended the quarter with $70.2B in cash and marketable securities and $28.8B in debt.
• Family of Apps revenue was $41.9B, up 16% year over year, and Family of Apps ad revenue was $41.4B, up 16% year over year and 20% on a constant currency basis.
• Ad impressions across services increased 5% year over year while average price per ad increased 10% year over year.
• Reality Labs revenue was $0.412B, down 6% year over year, with Reality Labs expenses of $4.6B and an operating loss of $4.2B.
• Key expense line moves included cost of revenue up 14%, R&D up 22%, marketing and sales up 8%, and G&A down 34%.

Guidance

• Q2 2025 total revenue is guided to $42.5B to $45.5B and assumes an approximately 1% foreign currency tailwind to year-over-year revenue growth.
• Full-year 2025 total expenses are guided to $113B to $118B, lowered from the prior outlook of $114B to $119B.
• Full-year 2025 capital expenditures including principal payments on finance leases are guided to $64B to $72B, increased from the prior outlook of $60B to $65B.
• Full-year 2025 tax rate is expected to be 12% to 15% absent changes to the tax landscape.
• The guidance range acknowledges a wider set of outcomes due to macro uncertainty and supply chain and hardware cost volatility.
• The company warned that the European Commission DMA decision could materially impact European business and revenue as early as Q3 2025.