Meta reports record Q3 revenue of $40.6 billion amid AI spending surge

Meta Platforms, the parent company of Facebook and Instagram, has reported a record revenue of $40.58 billion for Q3 2024, a 19% year-over-year increase. Driven by robust advertising growth, Meta’s ad revenue reached $39.8 billion for the quarter, a marked rise from $33.6 billion in the same period last year. The quarterly results outpaced Wall Street forecasts, which had projected total revenue of $40.29 billion.

The company’s net income for Q3 came in at $15.69 billion, marking a 35% year-on-year increase and translating to $6.03 per share, well above expectations of $5.25 per share, according to LSEG. Meta attributes this strong performance to its advancements in artificial intelligence, with CEO Mark Zuckerberg noting that “AI progress across our apps and business” contributed significantly to the successful quarter.

Daily active users across Meta’s suite of apps averaged 3.29 billion in the September quarter, a 5% year-on-year growth and a slight increase from 3.27 billion in June. However, since Q1 2024, the company has ceased reporting monthly active users for its apps and no longer discloses daily or monthly user metrics for Facebook specifically.

Looking ahead, Meta has forecasted Q4 revenue between $45 billion and $48 billion, aligning with analyst expectations. For the full year of 2024, Meta has adjusted its capital expenditure guidance to a range of $38 billion-$40 billion, up from the prior range of $37 billion-$40 billion. The company anticipates significant growth in capital expenditure in 2025, with AI investments leading the charge as Silicon Valley’s major technology players compete heavily in the field.

Despite the strong results, Meta’s Reality Labs division — which encompasses augmented and virtual reality (AR/VR) products like the Quest headset and metaverse initiatives — continued to post losses. The unit reported sales of $270 million, up from $210 million a year ago, but also an operating loss of $4.43 billion, an increase from a $3.74 billion loss in the same period last year. The company reiterated its view that its substantial metaverse investments may take years to yield returns.

Also, Meta India posted a 24% growth in gross advertising revenue, reaching Rs 22,730 crore for the fiscal year ending on 31 March, compared to 18,308 crore in the previous fiscal year, as per the company's filings with the RoC, as reported by ET. 

Meta’s sustained focus on artificial intelligence and long-term technology investments appear to underpin its strategy for future growth, as it balances high-performing ad revenues with substantial expenditure in emerging areas.