Meta Platforms, formerly known as Facebook, has reported its financial results for the year 2024, revealing a total revenue of $164.50 billion, marking a 22% increase compared to 2023. This growth was primarily driven by a surge in advertising revenue. Notably, revenue on a constant currency basis would have increased by 23% compared to the previous year.
The company's income from operations for 2024 was $69.38 billion, representing a significant 48% increase compared to 2023. This surge was attributed to the rise in advertising revenue, partly offset by an increase in costs and expenses, mainly due to operational expenses related to data centers and technical infrastructure, as well as employee compensation.
In terms of segment results, Meta Platforms operates through its Family of Apps (FoA) and Reality Labs (RL). The FoA, which encompasses Facebook, Instagram, Messenger, WhatsApp, and other services, reported a revenue of $162.35 billion for 2024, marking a 22% increase from 2023. On the other hand, RL, which includes virtual, augmented, and mixed reality related consumer hardware, software, and content, reported a revenue of $2.15 billion, reflecting a 13% increase from the previous year.
The company's net income for the year 2024 stood at $62.36 billion, with diluted earnings per share (EPS) of $23.86. Additionally, capital expenditures, including principal payments on finance leases, totaled $39.23 billion for the year. Share repurchases of Meta's Class A common stock amounted to $29.75 billion, while total dividend and dividend equivalent payments reached $5.07 billion.
As of December 31, 2024, Meta Platforms held cash, cash equivalents, and marketable securities totaling $77.81 billion, with long-term debt amounting to $28.83 billion. The effective tax rate for the year ended December 31, 2024, was reported at 12%, and the company's headcount stood at 74,067 as of December 31, 2024, reflecting a 10% increase year-over-year.
In terms of user metrics, the company reported that Family daily active people (DAP) averaged 3.35 billion for December 2024, representing a 5% increase year-over-year. Moreover, ad impressions delivered across the Family of Apps increased by 11% year-over-year in 2024, while the average price per ad increased by 10% during the same period.
However, Meta Platforms acknowledged that its advertising revenue has been and is expected to continue to be adversely affected by reduced marketer spending due to limitations on ad targeting and measurement tools arising from changes to the regulatory environment and third-party mobile operating systems and browsers. The company highlighted specific legislative and regulatory developments, such as the General Data Protection Regulation and the California Consumer Privacy Act, as well as changes implemented by mobile operating system and browser providers like Apple and Google, which have negatively impacted its advertising revenue.
To mitigate these challenges, Meta Platforms is continuously working on evolving its advertising systems to improve the performance of its ad products. This includes developing privacy-enhancing technologies, investing in artificial intelligence (AI) initiatives, engaging with industry partners to explore new standards for private and secure data processing for advertising purposes, and innovating its advertising tools to help marketers prepare campaigns and connect with consumers.
Despite the challenges and uncertainties, Meta Platforms remains committed to its investment philosophy, focusing on building operating efficiency while investing in significant opportunities. The company continues to make substantial investments in AI initiatives, data centers, technical infrastructure, and its metaverse and wearables efforts, with a particular focus on developing virtual, augmented, and mixed reality devices, software for social platforms, neural interfaces, and other foundational technologies.
Today the company's shares have moved 1.6% to a price of $687.4. For the full picture, make sure to review Meta Platforms's 10-K report.
