META Q2 2024 Earnings

Call Details

• Call Title: Meta Platforms, Inc. Q2 2024 Earnings Call
• Date: July 31, 2024 at 9:00 PM UTC
• Management Team:
  • Mark Zuckerberg (Chief Executive Officer)
  • Susan Li (Chief Financial Officer)
  • Kenneth Dorell (Director of Investor Relations)

Call Summary

Financial Performance

• Q2 total revenue was $39.1B, up 22% year over year and up 23% on a constant currency basis.
• Q2 total expenses were $24.2B, up 7% year over year.
• Q2 operating income was $14.8B, corresponding to a 38% operating margin, and net income was $13.5B or $5.16 per share.
• Capital expenditures in the quarter were $8.5B, and free cash flow was $10.9B for the quarter.
• Cash and marketable securities ended the quarter at $58.1B with total debt of $18.4B.
• Family of Apps revenue was $38.7B, up 22% year over year, and Family of Apps ads revenue was $38.3B, up 22% (23% cc).

Guidance

• Q3 2024 total revenue is expected to be in the range of $38.5B to $41.0B.
• The Q3 guidance assumes foreign currency is a 2% headwind to year-over-year total revenue growth based on current exchange rates.
• Full-year 2024 capital expenditures were updated to a range of $37B to $40B from a prior range of $35B to $40B.
• Susan Li stated that full-year 2024 total expenses guidance was discussed but the complete numeric range was not fully disclosed on the call.
• Absent changes to tax rules, the full-year 2024 tax rate is expected to be in the mid-teens.
• The company expects significant CapEx growth in 2025 to support AI research and product development.