Meta sees $48 bn as Q4 earnings, 21% YoY jump

The company said the growth has come on back of ads, AI investments

by e4m Staff
Published: Jan 31, 2025 11:24 AM | 2 min read

Meta Platforms Inc. has delivered a robust performance in its fourth quarter of 2024, surpassing analyst expectations and solidifying its position as a tech giant. The company reported a revenue of $48.39 billion, marking a significant 21% year-over-year increase.

This growth was primarily driven by the company's robust advertising business and strategic investments in artificial intelligence (AI).

The social media behemoth's net income soared to $20.84 billion, representing an impressive 49% increase compared to the same period in 2023. Meta's financial success can be attributed to its improved ad personalization, increased user engagement across its platforms, and growing demand from advertisers.

Meta's 'Family of Apps', including Facebook, Instagram, WhatsApp, and Messenger, continued to be the primary revenue driver. The segment generated $47.3 billion in revenue, up 21% year-over-year. The company's user base also saw steady growth, with Family daily active people (DAP) reaching 3.35 billion in December 2024, a 5% increase from the previous year.

CEO Mark Zuckerberg emphasized the company's progress in AI, stating, "We continue to make good progress on AI, glasses, and the future of social media. I'm excited to see these efforts scale further in 2025". This focus on AI is evident in Meta's increased investments in infrastructure and technology, with capital expenditures reaching $14.84 billion in Q4 2024.

While Meta's core business thrived, its Reality Labs division, focused on virtual and augmented reality, reported an operating loss of $4.97 billion. However, Zuckerberg remains optimistic about the long-term potential of AI-driven smart glasses and the metaverse.

Looking ahead, Meta expects first-quarter 2025 revenue to be in the range of $39.5-41.8 billion, reflecting 8-15% year-over-year growth. The company also anticipates full-year 2025 capital expenditures to be between $60-65 billion, primarily directed towards generative AI efforts and core business support.

Meta's strong financial performance and continued investment in cutting-edge technologies position it well for future growth. As the company continues to innovate and expand its offerings, it remains a formidable player in the ever-evolving digital landscape, offering exciting opportunities for B2B marketers in India and beyond.