Meta Q1 Earnings: Tech Giant’s Revenue Climbs 27%
Meta’s Q1 earnings show a spike in revenues and overall performance of the individual applications within the company. In an April 25 release, Meta disclosed its company performance for the first three months of the year.
The company recorded a $36.4 billion increase in revenues, a 27% year-over-year increase amid other positive indicators. This release follows positive projections by analysts on the likely outcome after a strong first quarter.
Operational and Financial Highlights
The tech giant’s quarterly performance came in strong with key points of growth expected this year. Meta’a Ad impression across its family of applications surged 20% this year as its family daily active people (DAP) 3.2 billion last month.
This figure marks a 7% year-over-year growth in the metric as the average price per ad increased by 6%. Total revenues delighted investors after Meta announced a 27% growth at $36.4 billion while revenues on a constant currency basis were at $36.35 billion.
Expenses recorded by Meta increased as overall costs hit $22.6 billion marking a 6% increase. Capital expenditure topped $6.7 billion. With these factors, the company’s cash and cash equivalents were at $58.1 billion while cash flow was $12.5 billion.
The capital return program saw share repurchases of $14.64 billion while dividend payments stood at $1.67 billion.
Meta Eyes Future Growth
Mark Zuckerberg the CEO of Meta highlighted the good start to the year stating growth recorded in the company’s applications.
“The new version of Meta AI with Llama 3 is another step towards building the world’s leading AI. We’re seeing healthy growth across our apps and we continue making steady progress building the metaverse as well.”
Similarly, Meta’s Chief Financial Officer expects Q2 revenues to be around $36.5- $39 billion while expenses and other fees are to increase. The company’s Reality Labs is projected to record losses because of multiple product developments and a wider scale of the ecosystem.
“Q1 was a good start to the year. We’re seeing strong momentum within our Family of Apps and are making important progress on our longer-term AI and Reality Labs initiatives that have the potential to transform the way people interact with our services over the coming years,” the report added.
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