Meta Platforms Sees Revenue Growth in Q3 2024

Company Outperforms Wall Street Estimates with Strong Earnings

For the quarter that ended in September 2024, Meta Platforms (META) reported a revenue of $40.59 billion, marking an impressive increase of 18.9% compared to the same period last year. Earnings per share (EPS) reached $6.03, significantly higher than $4.39 from the previous year.

This revenue figure exceeded the Zacks Consensus Estimate of $40.21 billion, resulting in a positive surprise of +0.95%. Additionally, Meta delivered an EPS surprise of +16.18%, with the expected EPS estimated at $5.19.

As investors analyze yearly changes in revenue and earnings, they often consider additional metrics that provide a clearer view of a company’s financial condition. These key figures can significantly influence overall performance and guide investors in their decision-making processes.

Here’s how Meta Platforms fared in the recently concluded quarter, focusing on critical metrics that analysts closely track:

• Family Daily Active People (DAP): 3.29 billion, compared to the average estimate of 3.32 billion from five analysts.
• Headcount: 72,404, slightly above the average estimate of 71,026 from four analysts.
• Average Revenue Per Person (ARPP): $12.29, exceeding the average estimate of $12.06 from three analysts.
• Advertising Revenue – US & Canada: $17.39 billion, falling short of the average estimate of $17.72 billion from five analysts, but reflecting a year-over-year increase of +16.3%.
• Advertising Revenue – Europe: $9.36 billion, surpassing the average estimate of $9.16 billion from four analysts, marking a +21.2% increase year-over-year.
• Geographical Revenue by User – Asia-Pacific: $8.22 billion, just under the average estimate of $8.24 billion from four analysts, with a year-over-year growth of +18.7%.
• Advertising Revenue – Rest of the World: $5.09 billion, topping the estimated $4.95 billion from four analysts, showing a year-over-year rise of +23%.
• Geographical Revenue by User – US & Canada: $17.61 billion, close to the average estimate of $17.67 billion from four analysts, reflecting a +15.9% change year-over-year.
• Revenue – Reality Labs: $270 million, below the average estimate of $340.18 million from 11 analysts but representing a +28.6% increase year-over-year.
• Revenue – Family of Apps (FoA): $40.32 billion, exceeding the estimate of $39.79 billion from 11 analysts, a year-over-year increase of +18.8%.
• Revenue – Advertising: $39.89 billion, slightly above the $39.48 billion estimated by 10 analysts, also showing an +18.6% change compared to last year.
• Revenue – Other: $434 million, surpassing the average estimate of $386.81 million from nine analysts, reflecting a +48.1% increase year-over-year.

Shares of Meta Platforms have appreciated by +2.9% over the past month, while the Zacks S&P 500 composite saw a +1.8% increase. The stock currently holds a Zacks Rank #2 (Buy), suggesting it may outperform the broader market soon.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.