Meta Platforms saw its stock rise in after-hours trading on Wednesday, although it later retreated from earlier highs, despite delivering a strong fourth-quarter earnings report and optimistic projections for its artificial intelligence (AI) future. The tech giant posted quarterly revenue of $48.39 billion, surpassing Wall Street’s consensus estimate of $47.04 billion. Its revenue for the full year 2024 went up to $164.50 billion, representing a 22% year-over-year.
“We continue to make good progress on AI, glasses, and the future of social media,” said Mark Zuckerberg, Meta founder and CEO. “I’m excited to see these efforts scale further in 2025.”
Meta’s $48.39 billion in revenue, up 21% year-over-year, was driven by higher ad revenue and increased engagement on Facebook, Instagram, and WhatsApp. The company also highlighted its progress in AI, with its Meta AI chatbot now boasting over 700 million monthly active users — a figure CEO Mark Zuckerberg expects will grow to 1 billion this year. During a call with analysts, Zuckerberg spoke confidently about the company’s AI ambitions, asserting that a service of this scale typically leads to a “durable, long-term advantage.” Meta is also allocating $60 billion to $65 billion in capital expenditures for 2025, with the bulk of that investment aimed at its AI strategy.
Zuckerberg framed 2025 as a pivotal year for AI, predicting that a highly intelligent and personalized AI assistant would soon reach more than 1 billion people. “I expect Meta AI to be that leading AI assistant,” he told investors.
In a more unusual remark, Zuckerberg also expressed optimism regarding the U.S. political landscape, citing President Donald Trump’s administration and its positive stance toward American technology. “We now have a U.S. administration that is proud of our leading companies, prioritizes American technology winning, and that will defend our values and interests abroad,” he said, positioning the current political climate as an engine for progress and innovation.
Yet, questions remain about whether Meta’s ambitious AI investments will pay off. Jeremy Goldman, principal analyst at eMarketer, noted in a Wednesday report that a new AI model from the Chinese startup DeepSeek had raised concerns. The model reportedly used a fraction of the computing power and cost of Meta’s approach, sending shockwaves through the tech sector. Goldman suggested that the development “threw a wrench in the works,” potentially making Meta’s AI strategy appear “bloated, not visionary.”
Meta also plans to reduce its workforce by 5%, a move that could affect approximately 3,600 employees. The layoffs are aimed at removing “low performers” and creating room for new talent, according to an internal memo reviewed by Bloomberg.
Fourth Quarter and Full Year 2024 Operational and Other Financial Highlights
-Family daily active people (DAP) – DAP was 3.35 billion on average for December 2024, an increase of 5% year-over-year.
-Ad impressions – Ad impressions delivered across our Family of Apps increased by 6% and 11% year-over-year for the fourth quarter and full year 2024, respectively.
-Average price per ad – Average price per ad increased by 14% and 10% year-over-year for the fourth quarter and full year 2024, respectively.
-Revenue – Revenue was $48.39 billion and $164.50 billion, representing increases of 21% and 22% year-over-year for the fourth quarter and full year 2024, respectively. Revenue on a constant currency basis would have increased 21% and 23% year-over-year for the fourth quarter and full year 2024, respectively.
-Costs and expenses – Total costs and expenses were $25.02 billion and $95.12 billion, representing increases of 5% and 8% year-over-year for the fourth quarter and full year 2024, respectively. The fourth quarter costs and expenses included a favorable impact of $1.55 billion due to a decrease in the accrued losses for certain legal proceedings.
-Capital expenditures – Capital expenditures, including principal payments on finance leases, were $14.84 billion and $39.23 billion for the fourth quarter and full year 2024, respectively.
-Capital return program – Share repurchases of our Class A common stock were nil and $29.75 billion, and total dividend and dividend equivalent payments were $1.27 billion and $5.07 billion for the fourth quarter and full year 2024, respectively.
-Cash, cash equivalents, and marketable securities – Cash, cash equivalents, and marketable securities were $77.81 billion as of December 31, 2024. Free cash flow was $13.15 billion and $52.10 billion for the fourth quarter and full year 2024, respectively.
-Long-term debt – Long-term debt was $28.83 billion as of December 31, 2024.
-Headcount – Headcount was 74,067 as of December 31, 2024, an increase of 10% year-over-year.