Meta Platforms (Nasdaq: META) reported its third-quarter 2024 earnings after the market close, showing strong financial performance.
The results exceeded market expectations.
Largely driven by advances in artificial intelligence (AI) and robust growth in advertising revenue, Meta’s revenue reached $40.6 billion, marking a 19% year-over-year increase and slightly exceeding $40, $3 billion expected. Earnings per share (EPS) came in at $6.03, higher than expected, with net income up 35% to $15.69 billion. Meta’s digital advertising business remains a key driver, with ad impressions up 7% and average ad prices up 11%, boosted by AI-enhanced ad placements and improved targeting.
An important aspect of the report is Meta’s continued investments in artificial intelligence, including tools such as Meta AI and Llama models, which have increased user engagement and ad performance across all its platforms. Meta AI enables personalized ad targeting, while Llama models serve as robust language models designed to refine Meta’s natural language processing capabilities, driving smarter interactions with users.
However, the Reality Labs division, focused on AR and VR projects, continues to operate at a loss, reporting a $4.4 billion deficit for the quarter. This highlights Meta’s commitment to its ambitions in the metaverse despite significant financial challenges in that area.
Looking ahead, Meta expects fourth-quarter revenue in the range of $45 billion to $48 billion, although executives remain wary of regulatory challenges in both the EU and the U.S., which could affect future operations.