Meta recently announced its latest earnings numbers, introducing a revamped performance summary that offers a more broad-reaching summary of its company data. This move seems intended to dilute market scrutiny by focusing on data points that Meta believes will positively reflect its business. However, this approach is more limiting for analysts, as the figures take on a different perspective than Meta’s traditional reports. The new summary now only provides overall usage statistics for Meta’s entire family of apps, including Facebook, Messenger, Instagram, and WhatsApp, without a breakout of Facebook usage specifically.
In terms of user metrics, Meta has shared that its Family Daily Active People (DAP) has reached 3.24 billion, showing growth from the previous report. The company has shifted its focus to daily active user numbers across all platforms, stepping back in terms of transparency by not providing monthly active user numbers. Despite this, Meta remains confident that its daily active user numbers are the most indicative of its performance, with a 7% year-over-year increase in daily active people seen as a sign of enduring success. The breakdown of growth between WhatsApp, Instagram, and Facebook remains undisclosed.
Meta’s revenue for the quarter stood at $36.46 billion, representing a 27% increase year-over-year. It is evident from the breakdown that Meta’s ad intake is heavily reliant on the U.S. market, despite growing in emerging regions. While Meta may not be generating equivalent income from these regions yet, it remains well-positioned to capitalize on future opportunities and maximize its business. The company has also included new charts such as “Ad Impressions Delivered” to provide insight into its ad business performance and identify growth opportunities, particularly in developing markets.
A significant area of focus for Meta is its investment in metaverse-related projects, with the Reality Labs VR division continuing to incur losses. Reality Labs cost Meta $3.8 billion in the period, with VR headset sales showing marginal year-over-year growth. Despite ongoing investments in metaverse technologies, Meta’s overall strong revenue performance helps alleviate scrutiny on this element. Meta expects its expenditure to rise in the future due to aggressive investment in AI and VR technologies. CEO Mark Zuckerberg outlined plans to acquire 350,000 Nvidia H100 GPUs for AI research, alongside ongoing VR development that will likely exceed $10 billion in investment this year.
Meta’s commitment to AI research and product development signals a significant increase in spending over the next year, impacting its immediate-term outlook. While the company has reduced headcount through staff rationalization, it remains focused on long-term bets in AI and VR. The report suggests a positive outlook on Meta’s core business performance and app usage growth, despite uncertainties related to future investments in AI and VR. It is clear that Meta is preparing for a period of increased spending as it continues to innovate and expand its technological capabilities.