Meta 1Q24 Earnings, About Meta’s “AI-Recommendation” System, Meta’s HW Sales

Hello everyone. Today's update will be dedicated to discussing Meta's earnings. Let's jump right in.
 

Meta 1Q24 Earnings

Meta’s 1Q24 earnings release was a tale of the conference call. Actual results found in the release were what we have come to expect from the company. Meta’s advertising machine found its feet in 2023 after a shaky period involving macro headwinds and renewed competitive pressure. Revenue was up 27% with operating income up 91%.

While we can take issue with some of the inner workings of that advertising machine when it comes to AI - which we will discuss shortly – there is no debate that Meta's monetization struggles of 2022 and early 2023 have dissipated.

Management's 2Q24 guidance is pointing

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Meta 3Q23 Earnings, Meta Hints at Sluggish Quest 3 Sales

Hello everyone. Meta reported earnings back on October 25th, a few weeks after the company’s Connect conference (discussed in greater detail here). When looking at the competitive landscape, Meta has become one of Apple’s top competitors. Accordingly, we continue to fully cover the company’s business performance and strategy. Let’s jump right in.

Meta 3Q23 Earnings

Meta’s reported 3Q23 numbers were strong.

  • 23% revenue growth

  • 143% operating income growth

  • 168% EPS growth

Much of this strength was expected. Revenue exceeded the midpoint of management’s guidance by just 3%, boosted by a FX tailwind.

Meta continues to see stabilization in its core business of monetizing user attention via advertising. This is the third consecutive quarter that showed such stabilization. A very easy year-over-year compare is certainly helping Meta. The company had a tough 2022. The stronger dollar is helping as well. However, there is legitimate improvement found within Meta’s core business, such as better Reels monetization.

In what is still difficult to get one’s mind around, Meta’s employee count at quarter end was down 24% year-over-year. This is obviously helping to cut expense growth and boost operating margins.

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