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Meta Platforms:Quarterly Results/2023 Q4: Difference between revisions
Meta Platforms:Quarterly Results/2023 Q4 (view source)
Revision as of 10:39, 2 February 2024
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* '''The company will leverage its huge number of users to train its AI products. "On Facebook and Instagram, there are hundreds of billions of publicly shared images and tens of billions of public videos, which we estimate is greater than the Common Crawl dataset and people share large numbers of public text posts in comments across our services as well," Zuckerberg said. But even more important than the upfront training corpus is the ability to establish the right feedback loops with hundreds of millions of people interacting with AI services across our products."''' | * '''The company will leverage its huge number of users to train its AI products. "On Facebook and Instagram, there are hundreds of billions of publicly shared images and tens of billions of public videos, which we estimate is greater than the Common Crawl dataset and people share large numbers of public text posts in comments across our services as well," Zuckerberg said. But even more important than the upfront training corpus is the ability to establish the right feedback loops with hundreds of millions of people interacting with AI services across our products."''' | ||
* Zuckerberg said they are rolling out Meta AI, AI Studio and Ray-Ban Meta smart glasses more widely in the coming months but monetization normally starts once they reach hundreds of millions or billions of people. | * Zuckerberg said they are rolling out Meta AI, AI Studio and Ray-Ban Meta smart glasses more widely in the coming months but monetization normally starts once they reach hundreds of millions or billions of people. | ||
* In 2024, they will focus on launching Llama 3, expanding the usefulness of Meta AI Assistant and make progress on AI Studio. | |||
=== | === Advertising Business === | ||
* In Q4, the online commerce vertical "was the largest contributor to year-over-year growth, followed by CPG and gaming." | |||
* In 2023, demand by advertisers in China reaching users in other markets was a strong driver to y/y growth of online commerce and gaming verticals. | |||
* '''In 2023, China-based advertisers represented 10% of Meta's overall revenue and contributed 5% to the total worldwide revenue growth.''' | |||
* '''In Q4 2023, Europe led in terms of ad revenue growth (33%), followed by Rest of World (32%), Asia Pacific (23%) and North America (19%).''' | |||
* FX was a tailwind to ad revenue growth in all the international regions. | |||
* '''In Q4, ad impressions grew by 21% driven by Asia-Pacific and Rest of World while the average price per ad increased by 2% " driven by advertiser demand and currency tailwinds, which were partially offset by strong impression growth, particularly from lower-monetizing surfaces and regions."''' | |||
* Click to message ads seeing greater demand. | |||
* Shop ads crossed a $2 billion annual run-rate in Q4. | |||
=== Share repurchases === | |||
* Expect to maintain an active share repurchase program but will start giving out dividends. | |||
=== Regulatory Environment === | |||
* '''FTC consent rule is currently the major risk.''' "The FTC is seeking to substantially modify our existing consent order and impose additional restrictions on our ability to operate. We are contesting this matter, but if we are unsuccessful it would have an adverse impact on our business," CFO Susan Lee said. | |||
=== Meta Apps === | |||
* Reels are being reshared 3.5 billion times each day. | * Reels are being reshared 3.5 billion times each day. | ||
* Reels is now contributing to net revenue across Meta's apps. | * '''Reels is now contributing to net revenue across Meta's apps.''' | ||
* "The biggest opportunity 5 going forward is unifying our recommendations systems across Reels and other types of video. That will help people discover the best content across our systems no matter what format it’s in," Zuckerberg said. | |||
* '''WhatsApp is succeeding more broadly in the United States; hence a huge opportunity given that the U.S. is an important contributor of revenue.''' | |||
* '''Threads now has more than 130 million users.''' | |||
* Meta will no longer report Facebook-specific metrics and will instead only report y/y changes in ad impressions, average price per ad at the regional level and Family daily active people. | |||
* Family of Apps other revenue grew 82% in Q4 to $334 million, '''driven by the growth of business messaging revenue from the WhatsApp Business Platform.''' | |||
* Daily watch time across Reels and overall video rose by 25% y/y in Q4, driven by ongoing ranking improvements. | |||
* WhatsApp Channels now has 500 million active users since rolling out worlwide in September. | |||
* | * | ||