In the first quarter of the current fiscal year, Meta has reported a 27.26% increase in its Revenue as it amassed $36,445 million in Q1FY24, juxtaposed to the corresponding period of FY 2023 where the same stood at $28,645 million.
Of the total revenue, it was the tech major’s Advertising Revenue which went up 26.81% to $35,635 million in Q1FY24, from $28,101 million in the first quarter of the previous fiscal year.
Adding to this was Meta’s Other Revenue which stood at $380 million in Q1FY24, up 85.36% from Q1FY23’s $205 million, contributing to the company’s revenue from its Family of Apps.
For the three months ended March 31, 2024, the third element which added to Meta’s Total Revenue was Reality Labs which added another $440 million in Q1FY24, which is 29.79% higher than $339 in Q1FY23.
During the period between January 1 to March 31, 2024, its Family Daily Active People increased by 7% on a year-over-year basis to 3.24 billion; Ad Impressions delivered across its Family of Apps go up 20% along with Average Price per Ad getting increased 6% on a YoY basis.
Similarly, Meta’s Income from Operations was also up 91.20% on a YoY basis to $13,818 million in the first quarter ended March 31, 2024, juxtaposed to the first quarter of previous fiscal wherein it stood at $7,227 million.
Being the parent company of Facebook, Instagram, WhatsApp and more, the tech giant’s Total Cost and Expenses, on the other hand, shot up 6% on a year-over-year basis to $22.64 billion with headcount being reduced 10% YoY to 69,329 employees.
Of this Total Cost and Expenses, Meta’s expenditure on Marketing and Sales went down 15.77% to $2,564 million in Q1FY24 from the corresponding period of the previous fiscal year wherein the tech giant had spent $3,044 million on the same.
Moreover, the Net Income of the tech major stood at $12,369 million in Q1FY24 which is 116.66% higher than that of the corresponding period last year wherein it accounted for $5,709 million.
Commenting on the quarterly update, Mark Zuckerberg, Founder and CEO, Meta, stated, “It’s been a good start to the year.”
“The new version of Meta AI with Llama 3 is another step towards building the world’s leading AI. We’re seeing healthy growth across our apps and we continue making steady progress building the metaverse as well,” he added.
Furthermore, Meta in its CFO Outlook Commentary also mentioned that it expects second quarter 2024 total revenue to be in the range of $36.5 to $39 billion as its guidance assumes foreign currency is a 1% headwind to year-over-year total revenue growth, based on current exchange rates.
“We expect full-year 2024 total expenses to be in the range of $96-99 billion, updated from our prior outlook of $94-99 billion due to higher infrastructure and legal costs. For Reality Labs, we continue to expect operating losses to increase meaningfully year-over-year due to our ongoing product development efforts and our investments to further scale our ecosystem,” it mentioned.
In its commentary, it also went on to add, “We anticipate our full-year 2024 capital expenditures will be in the range of $35-40 billion, increased from our prior range of $30-37 billion as we continue to accelerate our infrastructure investments to support our artificial intelligence (AI) roadmap. While we are not providing guidance for years beyond 2024, we expect capital expenditures will continue to increase next year as we invest aggressively to support our ambitious AI research and product development efforts.”
“Q1 was a good start to the year. We’re seeing strong momentum within our Family of Apps and are making important progress on our longer-term AI and Reality Labs initiatives that have the potential to transform the way people interact with our services over the coming years,” it reaffirmed.
