META Q3 2024 Earnings

Call Details

• Call Title: Meta Platforms, Inc. Q3 2024 Earnings Call
• Date: October 30, 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

• Q3 total revenue was $40.6B, up 19% year over year and up 20% on a constant currency basis.
• Q3 total expenses were $23.2B, up 14% year over year, resulting in Q3 operating income of $17.4B and a 43% operating margin.
• Net income for Q3 was $15.7B, or $6.03 per share on a GAAP basis.
• Capital expenditures including principal payments on finance leases were $9.2B in Q3, and free cash flow was $15.5B in the quarter.
• Family of Apps revenue was $40.3B, up 19% year over year, with ad revenue of $39.9B up 19% (20% cc).
• Reality Labs revenue was $270M, up 29% year over year, while Reality Labs operating loss was $4.4B driven by $4.7B of segment expenses.

Guidance

• Company expects Q4 2024 total revenue to be in the range of $45B to $48B with foreign currency assumed approximately neutral to year-over-year revenue growth.
• Full-year 2024 total expenses are expected to be $96B to $98B, updated from the prior range of $96B to $99B.
• Full-year 2024 capital expenditures are expected to be $38B to $40B, updated from the prior range of $37B to $40B.
• Company continues to expect significant capital expenditure growth in 2025 and expects a related acceleration in infrastructure expense growth next year.
• Absent changes to the tax landscape, Q4 2024 tax rate is expected to be in the low teens.
• Reality Labs is expected to have operating losses that increase meaningfully year over year in 2024.