Meta Platforms, Inc. reported strong financial results for the fourth quarter of 2024, with advertising remaining a key driver of its revenue growth. The company generated a total revenue of $48.39 billion for the quarter, marking a 21% increase compared to the previous year. Ad revenue made up $46.8 billion, which highlights the significance of advertising to its overall financial triumph.
Key Financial Highlights:
Q4 2024 Revenue: $48.39 billion (+21% YoY)
Ad Revenue in Q4: $46.8 billion
Full-Year Revenue (2024): $164.50 billion (+22% YoY)
Q4 Ad Impressions:+6% YoY across Family of Apps
+11% YoY for the full year
Average Price per Ad:+14% in Q4
+10% for the full year
Advertising & AI: Driving Growth and Innovation
Meta’s ads business remains the cash cow with steady growth in ad impressions and an average ad price. In Q4, ad impressions grew year-over-year at 6%. Ad impressions even surged 11% for the whole year. Also, the significant rise in the cost per ad helped drive the success with a 14% increase quarter over quarter and a 10% rise for the whole year.
Meta’s artificial intelligence (AI) investment has enhanced the ad experience. The company emphasized several essential developments.
Generative AI Tools: Over 4 million advertisers are using at least one of Meta’s generative AI-powered ad creative tools, up from just 1 million six months ago.
Advantage+ Shopping Campaigns: This self-service ad solution reached a $20 billion annual run rate in Q4, up 70% year-over-year.
Andromeda: Meta’s machine learning system, Andromeda, continues to improve ad retrieval proficiency, allowing businesses to refine their ad spending more effectively
Policy Changes and Advertiser Impact
Meta also discussed recent policy changes, including no longer continuing its fact-checking program, which the company said hadn’t had an adverse effect on advertiser spending. In the company’s Q4 earnings call, CFO Susan Li told investors that demand from advertisers remains strong. She emphasized that while it is moving away from traditional fact-checking to the feature of Community Notes, Meta’s commitment to brand safety hasn’t been diluted.
Meta’s CEO, Mark Zuckerberg, defended the decision, calling Community Notes a “better system” for content moderation, which Li echoed. Despite the policy shift, Meta has seen no significant impact on its advertising revenue, though Li did not disclose specific data to support this claim.
Cost and Capital Expenditure Overview
Meta’s total quarterly expenses were $25.02 billion, up 5% year over year. Total expenses grew 8% for the year to $95.12 billion. The company also had a favorable impact of $1.55 billion in Q4 related to reduced accrued losses associated with certain legal proceedings.
The capital expenditures of the company for Q4 were $14.84 billion, and for the entire year, it was $39.23 billion. These represent Meta’s ongoing investments in infrastructure, technology, and the metaverse.
Looking Ahead: AI and the Metaverse
Zuckerberg reaffirmed that AI and the metaverse would be key areas of investment for Meta. He highlighted Threads, Meta’s social media platform, as an emerging player in online discussions. He predicted that Threads would grow into a billion-user platform over the next several years.
Zuckerberg also highlighted 2025 as a crucial year for the metaverse. Indeed, he says “significant progress” should be expected for Quest — Meta’s virtual reality hardware — and Horizon Worlds, the company’s metaverse environment. So, as its long-term bet, it should see more adoption of those technologies.
Summary of Meta’s Q4 2024 Performance:
MetricQ4 2024Year-over-Year Growth
Total Revenue $48.39 billion +21%
Ad Revenue $46.8 billion –
Ad Impressions (Family of Apps) +6% (Q4) +11% (full year)
Average Ad Price +14% (Q4) +10% (full year)
Total Costs & Expenses $25.02 billion +5%
Capital Expenditures $14.84 billion
Meta’s focus on AI-driven advertising tools and its investment in the metaverse position the company well for future growth. As it continues innovating, Meta is poised to solidify its position as a leader in the advertising and immersive technology sectors.
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