Read the key points from the financial filing.
Meta Platforms reported strong financial results for Q1 2024, with revenue growing 27% year-over-year to $36.5 billion and operating income increasing 91% to $13.8 billion. The company's Family of Apps segment, which includes Facebook, Instagram, Messenger, and WhatsApp, saw daily active people increase 7% year-over-year to 3.24 billion. Ad impressions rose 20% and average price per ad increased 6%, contributing to the segment's income of $17.7 billion.
However, Meta's Reality Labs segment, which focuses on the company's metaverse initiatives, posted a loss of $3.8 billion, reflecting continued heavy investment in this area. Despite the impact on overall profitability, Meta generated free cash flow of $12.5 billion in Q1 and returned capital to shareholders through $14.6 billion in stock repurchases and $1.3 billion in dividends.
Looking ahead, Meta provided Q2 revenue guidance of $36.5-39 billion and expects full-year 2024 expenses of $96-99 billion, with capital expenditures of $35-40 billion to fund its AI and metaverse efforts. The company anticipates that operating losses in Reality Labs will increase meaningfully in 2024.
The results demonstrate Meta's ability to maintain strong growth and profitability in its core Family of Apps business while investing heavily in future technologies. Key factors to monitor going forward include the company's ability to sustain this momentum in its established businesses while effectively advancing its AI and metaverse initiatives to realize long-term ambitions. The elevated expense and capital expenditure guidance for 2024 signal that these initiatives remain in a significant investment phase.
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