In its latest earnings report, Meta has made changes to its performance summary to provide a more broad-reaching overview of its company data. This new summary, however, limits the amount of insight available to analysts, as it focuses on overall usage stats for its entire family of apps, such as Facebook, Messenger, Instagram, and WhatsApp, instead of providing specific figures for each app. Despite this change, Meta has reported a 7% year-over-year increase in Family Daily Active People, which now stands at 3.24 billion.
Although Meta has not disclosed monthly active user numbers in this report, it has highlighted its revenue, which increased by 27% year-over-year to $36.46 billion for the quarter. The company remains heavily reliant on the U.S. market for its ad revenue, but it is also growing in emerging regions, suggesting future opportunities for expansion. Meta has introduced new metrics, such as “Ad Impressions Delivered,” which aims to show the performance of its ad business and potential growth opportunities, particularly in developing markets.
Another area of focus for Meta is its ongoing investment in metaverse-related projects through its Reality Labs VR division. Despite incurring significant losses, the company is dedicated to advancing VR technology and recently announced plans to acquire 350,000 Nvidia H100 GPUs to build its next-generation AI. This project is expected to cost over $10 billion this year, in addition to the $3.8 billion spent on Reality Labs in the quarter. While these investments are risky, Meta’s strong revenue performance helps to alleviate scrutiny on this aspect.
Looking ahead, Meta anticipates a rise in capital expenditures as it continues to invest in AI and VR technology. CEO Mark Zuckerberg has outlined ambitious plans for the development of AI that simulates human-like intelligence, which is expected to contribute to the company’s long-term growth. Although Meta has reduced its headcount through staff rationalization, it remains committed to investing heavily in these long-term bets, despite the potential impact on its immediate-term outlook.
Overall, Meta’s latest earnings report reflects the company’s solid core business performance and relative growth in app usage. The decision to focus on potential opportunities and investments in AI and VR projects demonstrates Meta’s commitment to shaping its future direction. While there are risks associated with these long-term bets, Meta’s financial stability and strategic positioning suggest that the company is well-prepared to weather any challenges that may arise in the future.