- Meta Platforms reported 1Q revenue of $36.46 billion, up 27% year-on-year (y/y), very close to the estimated $36.12 billion.
- Advertising accounted for most of this revenue, bringing in $35.64 billion – a 27% y/y increase which slightly overshoots the estimate of $35.57 billion.
- Family of Apps also performed well with revenue of $36.02 billion, up 27% y/y and surpassing the estimate of $35.53 billion.
- However, Reality Labs revenue was slightly lower than expected at $440 million, a 30% y/y increase, compared to the estimated $494.1 million.
- Another revenue saw a fantastic jump of 85% y/y reaching $380 million, exceeding the predicted $300.1 million.
- Operating income from the Family of Apps increased significantly by 57% y/y to $17.66 billion, just a little shy of the estimated $17.76 billion.
- The Reality Labs operating loss was less than projected at $3.85 billion, a 3.7% decrease y/y against the estimated loss of $4.51 billion.
- Operating margin was 38% against last year’s 25%, exceeding the estimated 37.2%.
- EPS stood at $4.71, doubling last year’s EPS of $2.20 and exceeding the estimated $4.30.
- The service saw a 7.3% y/y increase in average daily users to 3.24 billion, better than the predicted 3.16 billion.
- Meta Platforms forecast 2Q 2024 total revenue to fall in the range of $36.5-39 billion.
- They also upgraded their estimate for 2024’s full-year capital expenditures to $35-40 billion in order to expedite their AI investments.
- The company anticipates 2024 total expenses to be $96-99 billion due to higher infrastructure and legal costs.
- Although they did not give future guidance, they did mention their aggressive AI research, and product development will lead to increased capital expenditures next year.
- The company’s shares fell by 2.6% in post-market trading to $480.54, with 41,390 shares traded.
Meta Platforms (Facebook) on Smartkarma
Analyst Coverage of Meta Platforms on Smartkarma
On Smartkarma, independent analysts have been closely following Meta Platforms (Facebook) to provide insights for investors. Baptista Research, in their report titled “Meta Platforms: A Spectacular End To 2023 But What Are The Bumps Ahead On The Road In 2024? – Major Drivers,” highlighted Meta’s impressive Q4 FY 2023 earnings and substantial growth over the past year. With over 3.1 billion daily users engaging with Meta’s applications, the company’s role in shaping global online interactions is crucial. The report also emphasized Meta’s strong revenue growth, demonstrating its financial resilience.
Meanwhile, MBI Deep Dives offered a contrasting view on Meta. In their “Meta Platforms: Model Update” report, they shared brisk thoughts on the updated models, leaning towards a bearish sentiment. However, in a separate report titled “Meta 4Q’23 Update,” MBI Deep Dives took a more bullish stance, discussing changes in key performance indicators like daily active users and ad impressions. These diverse analyses provide investors with a comprehensive view of Meta Platforms’ current performance and future prospects.
A look at Meta Platforms (Facebook) Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Meta Platforms Inc., known popularly as Facebook, is facing a promising long-term outlook based on Smartkarma Smart Scores. With an impressive Momentum score of 5, the company is showcasing strong performance indicators that suggest future growth potential. This is further supported by solid scores in Growth and Resilience, indicating a positive trajectory in terms of expanding its operations and withstanding market challenges. Although the Value and Dividend scores are moderate, the overall outlook for Meta Platforms appears to be optimistic.
As a social technology company, Meta Platforms (Facebook) is at the forefront of connecting people, fostering communities, and assisting businesses in their growth endeavors. The company’s involvement in advertisements, augmented reality, and virtual reality underscores its diverse interests and innovative approach to digital interaction. With favorable Smartkarma Smart Scores in key factors like Growth and Momentum, Meta Platforms is positioned well for sustained success and development in the competitive tech landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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