Meta has posted its newest earnings outcomes, protecting This autumn 2024, and regardless of the continuing and constant predictions of the collapse of Zuckerberg’s Fb empire, the precise knowledge exhibits that Meta continues to go from energy to energy.
First off, on utilization, Meta added extra actives in This autumn, taking it to three.35 billion customers throughout its apps.
The regular rise of Threads could have helped on this respect, although Fb stays its hottest floor. However then once more, Instagram now has extra customers than Fb in Europe, although both manner, mixed, Meta continues to broaden its viewers, which is able to present extra alternative for entrepreneurs, and extra advert {dollars} for the corporate.
On that entrance, Meta not too long ago introduced the preliminary take a look at of Threads advertisements, which is able to assist it additional construct on this aspect:
Meta introduced in an enormous $48.39 billion in income for This autumn, taking it $164.5 billion for the complete yr. For comparability, Meta introduced in $134.9 billion in 2023.
The overwhelming majority of the corporate’s consumption nonetheless comes from advertisements (96%), with its different bets solely simply beginning to acquire any vital traction available in the market.
However additionally they contributed to its numbers this time round:
Actuality Labs, its VR and AR division, reached a brand new income report in This autumn, as extra individuals bought Ray Ban Meta glasses and VR models.
Certainly, Ray Ban Meta gross sales have exceeded expectations, and can proceed to develop into an even bigger contributor to Meta’s backside line as their performance expands (ultimately into AR as nicely), whereas the Quest app reached the highest of the App Retailer charts at Christmas, reflecting the variety of Quest models that Santa delivered.
It’s nonetheless shedding cash on these bets general (Meta tasks that it’s going to spend $65 billion on AI improvement alone this yr, whilst you can see the continuing losses for Actuality Labs within the above itemizing), however we’re seeing the preliminary seeds of promise for Meta’s imaginative and prescient, and the place that funding may ultimately lead for the corporate.
And the place it could lead on is market dominance, particularly in VR, the place it actually doesn’t have a rival as but.
And because the firm’s consumption continues to develop, with its general income up 22% year-over-year, now could be the time for Meta to make these key investments in its future.
Meta’s additionally getting smarter with its advertisements, and presenting extra of them in-stream.
And once more, that’s earlier than you think about Threads, which, at 300 million customers, and rising, presents one other large canvas for Meta’s promotions.
(Replace: In a separate publish, Zuckerberg additionally introduced that Threads is now as much as 320 million energetic customers.)
Which can additional enhance its income per person figures:
This chart ought to make all Meta traders blissful, and whereas some customers have complained in regards to the rising variety of advertisements in Meta’s apps, that clearly hasn’t impacted general utilization, with all of its key metrics trending up at this stage.
Although that would nonetheless change on account of Meta’s revised moderation technique, in shifting to a Group Notes method, and retiring third-party fact-checking. Some individuals are actually seeking to depart Meta’s apps in protest over what they see as Zuckerberg bowing to President Trump’s calls for on this entrance.
However on the similar time, Zuckerberg’s decision-making right here will seemingly be good for enterprise, with the corporate hoping to realize favor to assist maximize its enlargement into Europe, develop next-level AI fashions, and push forward with VR improvement.
It’s additionally hoping to keep away from the impacts of overseas tariffs on imports, with lots of its wearables elements made in China, and different areas. Trump’s vow to extend tariffs to hunt extra favorable offers for the U.S. may have a significant affect right here, significantly on Meta’s AR glasses, which it’s nonetheless working to scale back the price of, to be able to make them a extra interesting client product.
As such, if Meta can get an in with the Trump staff, that would have a spread of advantages, and experiences have prompt that Zuckerberg himself is seeking to purchase a home in Washington to strengthen these ties.
So whilst you could not prefer it, Zuckerberg’s strikes do make sense. The query then is whether or not the elevated dangers of misinformation on account of this shift outweigh the broader advantages for the enterprise.
And likewise, if Zuck and Co. actually care about that both manner.
By way of different impacts, Meta’s additionally nonetheless grappling with EU rules, which not too long ago noticed it fined one other $841 million for antitrust violations. It’s additionally nonetheless rationalizing its workers, with one other spherical of job cuts in October, although its general headcount truly elevated by 10% in 2024.
On the flip aspect, when it comes to potential good points, Meta stands to learn lots from the confusion round TikTok’s standing within the U.S., with extra manufacturers and creators seeking to shift away from the platform for extra stability.
Meta’s additionally growing a plan to deploy AI bot profiles in its apps, which sounds unusual, however may additionally find yourself boosting in-app income, by offering extra customers with the dopamine hit of additional engagement.
Total, it’s a terrific end result for Meta, underlining its key strengths, and its stable market positioning. It’s arguably main the way in which within the three key areas of tech improvement, in AI, AR, and VR connection, whereas it’s additionally nonetheless bringing in more cash regardless of its give attention to the subsequent stage.
And whereas not all of its choices have been widespread, the information doesn’t lie, and Meta appears to be like to be making the best strikes to propel the enterprise ahead.
The person impacts are one other query, and too usually these are solely raised with any power on reflection. However as a enterprise report, there are few corporations with higher prospects.
