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Meta Platforms:Quarterly Results/2023 Q4: Difference between revisions
Meta Platforms:Quarterly Results/2023 Q4 (view source)
Revision as of 11:37, 2 February 2024
, 2 February 2024→Summary of the earnings call
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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 | * In 2024, they will focus on launching Llama 3, expanding the usefulness of Meta AI Assistant and making progress on AI Studio. | ||
=== Advertising Business === | === Advertising Business === | ||
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* Click to message ads seeing greater demand. | * Click to message ads seeing greater demand. | ||
* Shop ads crossed a $2 billion annual run-rate in Q4. | * Shop ads crossed a $2 billion annual run-rate in Q4. | ||
* Lee said they are getting strong feedback from advertisers on features such as Advantage+ Shopping, Advantage+ Catalog, Advantage+ Creative, Advantage+ Audiences, etc. They are also getting good feedback on tools that report on ad performance (Q&A). | |||
* Concerning Shop ads, they partnered with Amazon to make purchases of products online. But the test is still in the early days (Q&A) | |||
=== Q1 and Full-year 2024 Guidance === | |||
* '''CFO Susan Lee said their Q1 guidance is based on strong advertising trends that they are seeing as well as accruing benefits from their ad performance investments.''' "On your second question, which is about the Q1 year-over-year -- sorry, the Q1 revenue guide. This really just reflects a lot of the trends we saw in Q4, which is strong, broad-based advertising demand across verticals, particularly within online commerce and gaming. I'll also note that we get the benefit from having February 29th in this quarter. And again, just the improvements that we continue to accrue to the business from all of our investments in improving ad performance over time," she said. | |||
* Their increased capex guidance reflects their evolving understanding of how much AI infrastructure they may need. It is also an insurance on supply situation (Q&A). | |||
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=== Share repurchases === | === Share repurchases === | ||
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* Daily watch time across Reels and overall video rose by 25% y/y in Q4, driven by ongoing ranking improvements. | * 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. | * WhatsApp Channels now has 500 million active users since rolling out worlwide in September. | ||
=== Year of Efficiency === | |||
* The objective of their "year of efficiency" was to make them leaner and more balanced towards their engineering work and to improve their financial performance with the aim of providing stability as they invest in long-term goals. | |||
* "Year of Efficiency" wasn't a short-term thing. | |||
* They will hire again this year since they have a big recruiting backlog from last year. However,the new headcount to be hired will be minimal compared to what they have done historically. | |||
* The other reason why the want to be lean is to prepare for unpredictable and volatile period in the next 5 years or 10. Be it regulatory, geopolitical and technological. | |||
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* Their focus in 2024 is growing their mobile version of Horizon and VR. | * Their focus in 2024 is growing their mobile version of Horizon and VR. | ||
* Ray-Ban Meta smart glasses seeing high demand and engagement. Their engagement and retention are significantly higher than the first version. | * Ray-Ban Meta smart glasses seeing high demand and engagement. Their engagement and retention are significantly higher than the first version. | ||
* Mark thinks smart glasses with AI Assistant will be the killer app and then holograms and sense of presence will come later (Q&A). | |||
* | * | ||