Meta Platforms Inc., the parent company of Facebook, reported impressive second-quarter earnings and sales that exceeded Wall Street's expectations, largely attributed to robust advertising revenue growth. For the quarter that ended on June 30, the company's earnings per share surged to $5.16, a significant increase from $2.98 in the previous year.
This figure surpassed the consensus estimate of $4.76 as polled by Capital IQ. In addition, Meta's revenue soared by 22% to reach $39.07 billion, comfortably exceeding market estimates of $38.31 billion. In after-hours trading, the company’s stock witnessed a notable rise of 3.3%. The advertising revenue notably climbed to $38.33 billion, a considerable jump from $31.5 billion, outpacing the $37.55 billion consensus among analysts at Visible Alpha.
The average price per advertisement alongside the total number of ad impressions both experienced a 10% annual increase during the quarter. Furthermore, Meta's Facebook platform saw a 7% year-on-year increase in daily active users, averaging 3.27 billion in June, further solidifying its user base amidst a highly competitive landscape.
Looking ahead, Meta forecasts consolidated revenue for the third quarter to be in the range of $38.5 billion to $41 billion, compared to the Capital IQ-consensus of $39.18 billion. In terms of future investments, the company is projecting 2024 capital expenditures between $37 billion and $40 billion, which is an adjustment upward from the previous lower end forecast of $35 billion.
Chief Financial Officer Susan Li emphasized the company’s commitment to fostering growth, stating, "While we continue to refine our plans for next year, we currently expect significant capital expenditures growth in 2025 as we invest to support our artificial intelligence research and product development efforts." Li also reiterated the company’s total expense outlook for 2024, maintaining it in the range of $96 billion to $99 billion.
Moreover, Li noted the necessity to remain vigilant regarding the regulatory environment, stating, "We continue to monitor an active regulatory landscape, including the increasing legal and regulatory headwinds in the European Union and the US that could significantly impact our business and our financial results." In the stock market, Meta’s current price is noted at $494.98, reflecting a change of +20.15, which corresponds to a percent change of +4.24..