That’s because Meta Platforms just reported a whopping 49% increase in revenue compared to the same quarter in 2023. It jumped from just $3.35 billion in the prior quarter to an astounding $41.39 billion. This figure beat Wall Street’s expectations, which had been forecasting $40.44 billion in ad revenue. The positive results led to a rise in Meta’s shares by more than 5%, reflecting investor confidence in the company’s performance and future outlook.
In a surprise move, Meta announced this highly anticipated milestone. In fact, they are still on track to surpass their first quarter high of 3.43 billion daily active users! This figure exceeded analysts’ estimates of 3.39 billion, highlighting the company’s strong user engagement and growth trajectory. The jump in monthly active users is even more impressive against the backdrop of the troubled waters that have found the company in recent months.
In February of this year, Meta announced that it would be laying off 5% of its workforce. The company targeted these employees by labeling them its worst performers. This strategic initiative was intended to consolidate operations and drive greater efficiency in a rapidly evolving marketplace. Even with these layoffs, the company has continued to grow strongly, showcasing the strength of their business model and adaptability.
If there is a risk to the outlook Looking ahead, Meta gave second-quarter guidance that was in-line with Wall Street expectations. The company is projecting revenues of $42.5 to $45.5 billion. At the same time, analysts are forecasting second-quarter sales of about $44.03 billion. This guidance comes on the heels of a prior full-year revenue projection revision upward to between $114 billion and $119 billion.
Meta Platforms CEO Mark Zuckerberg doubled down on the company’s promise of Anchoring to innovate and invest in long-term technologies.
“This updated outlook reflects additional data center investments to support our artificial intelligence efforts as well as an increase in the expected cost of infrastructure hardware.” – Meta
The stunning new performance was featured during the Meta Connect event that took place in Menlo Park, California, on September 25, 2024. The event showcased the company’s advancements and strategic direction, reinforcing its position in the competitive technology landscape.