NASDAQ$META

Meta Platforms Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Meta's Q2 2024 earnings showcased strong financial performance and strategic advancements.

Meta reported a strong quarter with a 22% increase in revenue year-over-year, reaching $39.07 billion. Net income increased by 73% to $13.465 billion, and diluted EPS also increased by 73% to $5.16. The company continues to invest in AI and Reality Labs while driving growth across its apps.

  • Revenue increased by 22% year-over-year to $39.07 billion.
  • Net income increased by 73% year-over-year to $13.465 billion.
  • Diluted EPS increased by 73% year-over-year to $5.16.
  • Family daily active people (DAP) reached 3.27 billion on average for June 2024, a 7% increase year-over-year.

Headline financials

Total Revenue

$39.1B

Previous: $32B+22.1%
EPS

$5.16

Previous: $2.98+73.2%
Operating Margin

38.0%

No prior period
Effective Tax Rate

11.0%

No prior period
Capital Expenditures

-$14.6B

Previous: -$13.1B-11.6%
Free Cash Flow

-$1.11B

Previous: -$5.27B+79.0%
Net Income

$13.5B

Previous: $7.79B+72.9%
Operating Income

$14.8B

Previous: $9.39B+58.1%
Gross Profit

$31.8B

Previous: $26.1B+21.9%
Cash & Equivalents

$32B

Previous: $28.8B+11.3%
Total Assets

$230B

Previous: $207B+11.4%
R&D Expense

$10.5B

No prior period
Stock-Based Comp

$4.62B

Previous: $4.06B+13.7%

Revenue & EPS history

Meta · Revenue · Quarterly

$39.1B

Q2 2024+22.1%vs Q2 2023
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Meta · $34.1B total across 2 segments · Q3 2023

  • Family of Apps
    $33.9B+23.7%
  • Reality Labs
    $210M-26.3%

Forward guidance

Meta expects Q3 2024 total revenue to be in the range of $38.5-41 billion. Full-year 2024 total expenses are expected to be in the range of $96-99 billion. Full-year 2024 capital expenditures are expected to be in the range of $37-40 billion. The full-year 2024 tax rate is expected to be in the mid-teens.

Tailwinds

  • Q3 2024 total revenue is expected to be in the range of $38.5-41 billion.
  • Full-year 2024 total expenses outlook unchanged from prior outlook.
  • Expects Meta AI to be the most used AI assistant in the world by the end of the year.
  • Good traction with Ray-Ban Meta AI glasses.
  • Driving good growth across apps.

Headwinds

  • Foreign currency is expected to be a 2% headwind to year-over-year total revenue growth.
  • Reality Labs operating losses are expected to increase meaningfully year-over-year.
  • Infrastructure costs will be a significant driver of expense growth next year.
  • Expects significant capital expenditures growth in 2025.
  • Monitoring an active regulatory landscape, including increasing legal and regulatory headwinds in the EU and the U.S.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+1.9%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.0%

Avg return

30 days after

58%

35 / 60 earnings

Positive

+31.5%

Q2 2013

Best reaction

-28.8%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%-9.6%-5.5%
Q4 2025+1.2%+3.4%-3.1%
Q3 2025-2.4%-16.5%-13.8%
Q2 2025+2.3%+9.8%+6.3%
Q1 2025+4.2%+7.0%+17.9%
Q4 2024+1.6%+4.1%-1.2%
Q3 2024-4.3%-5.5%-3.2%
Q2 2024+7.5%+2.7%+12.5%
Q1 2024-11.0%-12.8%-3.6%
Q4 2023+21.7%+16.6%+28.7%
Q3 2023-7.7%-3.2%+8.2%
Q2 2023+5.9%+8.2%-3.0%
Q1 2023+14.9%+17.2%+26.3%
Q4 2022+26.7%+24.9%+24.4%
Q3 2022-28.8%-32.3%-19.0%
Q2 2022+1.0%+0.5%+1.7%
Q1 2022+13.7%+16.7%+7.8%
Q4 2021-25.5%-29.5%-37.3%
Q3 2021-2.7%-0.3%+5.1%
Q2 2021-2.6%-4.3%+1.3%
Q1 2021+8.5%+6.3%+8.3%
Q4 2020-6.0%-7.1%-8.7%
Q3 2020-1.7%-0.9%+3.8%
Q2 2020+8.7%+7.1%+25.9%
Q1 2020+11.9%+12.2%+23.1%
Q4 2019-3.8%-6.2%-11.6%
Q3 2019+1.2%+2.9%+6.5%
Q2 2019-0.8%-3.2%-12.2%
Q1 2019+5.2%+6.0%-1.5%
Q4 2018+15.6%+17.4%+12.5%
Q3 2018+6.8%+5.8%-2.4%
Q2 2018-17.9%-20.3%-18.6%
Q1 2018+9.1%+7.7%+15.8%
Q4 2017+3.2%-3.1%-5.6%
Q3 2017-0.6%+0.1%-2.8%
Q2 2017+3.1%+2.4%+0.6%
Q1 2017-1.3%-1.1%+0.5%
Q4 2016+0.4%+1.3%+5.3%
Q3 2016-7.3%-5.7%-10.9%
Q2 2016+3.1%+2.5%+3.1%
Q1 2016+7.3%
Q4 2015+12.1%
Q3 2015+6.0%
Q2 2015-0.1%
Q1 2015-1.4%
Q4 2014+2.9%
Q3 2014-5.5%
Q2 2014+8.2%
Q1 2014-3.4%
Q4 2013+10.8%
Q3 2013+1.6%
Q2 2013+31.5%
Q1 2013+4.3%
Q4 2010-9.3%
Q4 2012+0.6%
Q3 2011+15.7%
Q3 2012+20.2%
Q2 2011-9.8%
Q4 2011-9.8%
Q2 2012-19.2%
Q1 2012

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