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Meta Platforms:Quarterly Results/2024 Q1: Difference between revisions
Meta Platforms:Quarterly Results/2024 Q1 (view source)
Revision as of 10:34, 25 April 2024
, 25 April 2024→Earnings Call Summary
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* Zuckerberg said the 400+B parameter model that they are testing and will be used in its Llama is on track to become industry-leading on several benchmarks. | * Zuckerberg said the 400+B parameter model that they are testing and will be used in its Llama is on track to become industry-leading on several benchmarks. | ||
* '''Zuckerberg said they plan to invest significantly in AI in the coming years but that they will continue operating the rest of the business efficiently. "And this leads me to believe that we should invest significantly more over the coming years to build even more advanced models and the largest scale AI services in the world. As we're scaling capex and energy expenses for AI, we'll continue focusing on operating the rest of our company efficiently. But realistically, even with shifting many of our existing resources to focus on AI, we'll still grow our investment envelope meaningfully before we make much revenue from some of these new products."''' | * '''Zuckerberg said they plan to invest significantly in AI in the coming years but that they will continue operating the rest of the business efficiently. "And this leads me to believe that we should invest significantly more over the coming years to build even more advanced models and the largest scale AI services in the world. As we're scaling capex and energy expenses for AI, we'll continue focusing on operating the rest of our company efficiently. But realistically, even with shifting many of our existing resources to focus on AI, we'll still grow our investment envelope meaningfully before we make much revenue from some of these new products."''' | ||
* '''Zuckerberg said Meta AI is the main thing he's focused on this year and next year. "But I'd say that's the main thing that I'm focused on for this year and probably a lot of next year is growing that product and the other AI products and the engagement around them."''' (Q&A) | |||
* Zuckerberg said historically they have seen a lot of stock volatility during times of their product playbook and they expect the same as they scale up on AI. | * Zuckerberg said historically they have seen a lot of stock volatility during times of their product playbook and they expect the same as they scale up on AI. | ||
* Zuckerberg sees building AI as the largest undertaking they have ever done. " But building the leading AI will also be a larger undertaking than the other experiences we've added to our apps, and this is likely going to take several years." | * Zuckerberg sees building AI as the largest undertaking they have ever done. " But building the leading AI will also be a larger undertaking than the other experiences we've added to our apps, and this is likely going to take several years." | ||
* Some of the areas they plan to monetize AI include scaling business messaging, introducing ads or paid content into AI interactions, and asking people to pay for more compute. Also, AI is already improving engagement. | * Some of the areas they plan to monetize AI include scaling business messaging, introducing ads or paid content into AI interactions, and asking people to pay for more compute. Also, AI is already improving engagement. | ||
* They are hearing good feedback on business AIs (Q&A). | |||
* They have seen a large adoption of the GenAI image expansion AI feature with small businesses. This will remain a big focus for them in 2024. (Q&A) | |||
=== Advertising and recommendation systems === | |||
* 30% of the posts on Facebook Feed are delivered by their AI recommendation system (2x over the last couple of years), Zuckerberg said. | * 30% of the posts on Facebook Feed are delivered by their AI recommendation system (2x over the last couple of years), Zuckerberg said. | ||
* For the first time, more than 50% of the content on Instagram is AI-recommended. | * For the first time, more than 50% of the content on Instagram is AI-recommended. | ||
* '''Revenue flowing through Advantage+ Shopping and Advantage+ App Campaigns has more than doubled since last year.''' | *'''Revenue flowing through Advantage+ Shopping and Advantage+ App Campaigns has more than doubled since last year.''' | ||
* Meta Training and Inference Accelerator chip has enabled them to cut recommendations-related costs. | * Meta Training and Inference Accelerator chip has enabled them to cut recommendations-related costs. | ||
* The singular recommendation system led to an 8% to 10% increase in Facebook Reels watch time (Q&A). | |||
* This year, they plan to deploy the singular recommendation system to Facebook's video tab as well. (Q&A) | |||
* They are optimistic that the new singular recommendation system will lead to improved relevant video recommendations over time. (Q&A). | |||
* '''Meta Lattice (deployed last year), which consolidates smaller and more specialized models into larger models that can better learn characteristics that improve ad performance across Feeds and Reels and multiple types of ads and objectives at the same time led to improved ad performance over the course of 2023. They plan to enhance its performance in 2024 and add more objectives such as web and ROAS.''' (Q&A) | |||
* Reels remain a positive contributor to overall revenue (Q&A). | |||
=== Metaverse === | === Metaverse === | ||
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=== Regulatory === | === Regulatory === | ||
* '''They have a jury trial in June brought by the State of Texas regarding the use of | * '''They have a jury trial in June brought by the State of Texas regarding the use of facial recognition technology. They said this "could ultimately result in a material loss."''' | ||
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