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Meta Platforms:Quarterly Results/2024 Q1 (view source)

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== Earnings Call Summary ==
== Earnings Call Summary ==
 
Here is a summary of the earnings call<ref>https://s21.q4cdn.com/399680738/files/doc_financials/2024/q1/META-Q1-2024-Earnings-Call-Transcript.pdf</ref>.
=== Family of Apps ===
 
* They are seeing healthy growth in U.S. when it comes to Family of Apps. In particular, the number of WhatsApp daily actives and messages sent in the U.S. keeps gaining momentum.
* Reels now make up 50% of the time spent on Instagram.
* Threads now has more than 150 million monthly actives.
* Video now represents 60% of the time on both Facebook and Instagram.


=== AI ===
=== AI ===
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* Reels remain a positive contributor to overall revenue (Q&A).
* Reels remain a positive contributor to overall revenue (Q&A).
* Advantage+ Audience has led to a 28% decrease in cost per click compared to regular targeting.
* Advantage+ Audience has led to a 28% decrease in cost per click compared to regular targeting.
*


=== Metaverse ===
=== Family of Apps ===
* Metaverse continues to remain one of their long-term focus, but it seems they are now focusing more on AR glasses (Aron's thought).
 
* They are beginning to see AI initiatives increasingly overlap with their Reality Labs project.
* They are seeing healthy growth in U.S. when it comes to Family of Apps. In particular, the number of WhatsApp daily actives and messages sent in the U.S. keeps gaining momentum.
* One of the bigger areas they are investing on in Realitity Labs is glasses. "We think that that's going to be a really important platform for the future," Zuckerberg said.
* Reels now make up 50% of the time spent on Instagram.
* Threads now has more than 150 million monthly actives.
* Video now represents 60% of the time on both Facebook and Instagram.


=== Q1 Results and future outlook ===
=== Q1 Results and future outlook ===
* The online commerce vertical was the largest contributor to y/y growth in Family of Apps ad revenue (35.6 billion or +27% y/y), followed by gaming and entertainment and media.
* The online commerce vertical was the largest contributor to y/y growth in Family of Apps ad revenue (35.6 billion or +27% y/y), followed by gaming and entertainment and media.
* '''Ad revenue grew the strongest in the Rest of World (40%) and Europe (33%).  Asia-Pacific was up 25% and North America grew 22%.'''
*'''Ad revenue grew the strongest in the Rest of World (40%) and Europe (33%).  Asia-Pacific was up 25% and North America grew 22%.'''
* Impression growth (+20%) was mainly driven by Asia-Pacific and Rest of World.
* Impression growth (+20%) was mainly driven by Asia-Pacific and Rest of World.
* Pricing growth (+6%) was driven by advertiser demand, which was partially offset by strong impression growth, particularly from lower-monetizing regions and surfaces.
* Pricing growth (+6%) was driven by advertiser demand, which was partially offset by strong impression growth, particularly from lower-monetizing regions and surfaces.
* Family of Apps other revenue rose 85% y/y to $380 million, driven by business messaging revenue growth from WhatsApp Business Platform.
* Family of Apps other revenue rose 85% y/y to $380 million, driven by business messaging revenue growth from WhatsApp Business Platform.
* '''CFO Susan Li said growt in spend among Chinese advertisers remained strong in Q1, driven by online commerce and gaming. She didn't give outlook but said "they are lapping periods of increasingly strong demand over the course of 2024 given the recovery of China-based advertisers in 2023 from their prior pandemic-driven headwinds."''' (Q&A)
*'''CFO Susan Li said growt in spend among Chinese advertisers remained strong in Q1, driven by online commerce and gaming. She didn't give outlook but said "they are lapping periods of increasingly strong demand over the course of 2024 given the recovery of China-based advertisers in 2023 from their prior pandemic-driven headwinds."''' (Q&A)
* '''They didn't give guidance for the full year 2024 but said it will influence by a number of factors such as macro conditions which is hard to predict and that they will be lapping periods of increasingly strong demand.''' (Q&A)
*'''They didn't give guidance for the full year 2024 but said it will influence by a number of factors such as macro conditions which is hard to predict and that they will be lapping periods of increasingly strong demand.''' (Q&A)
* Li said they grew conversions in Q1 faster than they grew impressions (Q&A).
* Li said they grew conversions in Q1 faster than they grew impressions (Q&A).
* Li said they follow an ROI-driven approach when it comes to core AI work but on strategic bets (GenAI) they are still much earlier on the return curve (Q&A).
* Li said they follow an ROI-driven approach when it comes to core AI work but on strategic bets (GenAI) they are still much earlier on the return curve (Q&A).


=== Regulatory ===
=== Regulatory ===
*'''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."'''


* '''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."'''
=== Metaverse ===
* Metaverse continues to remain one of their long-term focus, but it seems they are now focusing more on AR glasses (Aron's thought).
* They are beginning to see AI initiatives increasingly overlap with their Reality Labs project.
* One of the bigger areas they are investing on in Realitity Labs is glasses. "We think that that's going to be a really important platform for the future," Zuckerberg said.


=== TikTok ===
=== TikTok ===
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