In the first quarter of 2024, Meta, formerly known as Facebook, released its financial results and reported revenues of $36.46 billion. This was a 27% increase from the corresponding quarter and represents the fifth quarter in a row where Meta has shown strong revenue growth. Forecasts predicted revenues of around $36.1 billion, so this growth exceeded expectations.
The company’s profit per share stood at $4.71, surpassing analysts’ expectations of $4.3 per share. Revenues from advertising totaled approximately $35.64 billion, which was slightly above early forecasts. Meta has been investing heavily in developing artificial intelligence and the metaverse, with capital expenditures of around $6.72 billion in the last quarter. This investment has been well received by Wall Street, as the company’s net profit is now higher than its capital expenditures.
Despite its financial successes, Meta faces concerns about rising expenses and investments related to artificial intelligence development. The company predicts that expenses for 2024 will reach between $96-99 billion, up from previous estimates primarily due to higher infrastructure and legal costs. Additionally, annual capital expenditures for 2024 are expected to be in the range of $35-40 billion.
Nevertheless, Meta continues to innovate and expand its offerings. The company recently reported that its Metaverse division generated sales of $440 million in the quarter but also suffered significant losses of $3.85 billion due to ongoing development efforts in this area