Earnings Preview: Meta Platform
Key Highlights
* META beats Q4 earnings expectations
* Forecasted revenue growth slowdown for Q1
* Expenses projected to rise in 2025
Breaking Down the Numbers
* Q4 EPS: $8.02 (vs. estimated $6.75)
* Revenue: $48.4 billion (vs. estimated $46.9 billion)
* Full-year Net Income: $62.4 billion (up 59%)
* Q1 Revenue Outlook: $39.5-$41.8 billion (8%-15% growth YoY)
Growth Prospects and Challenges
* Meta declines to provide full-year revenue guidance
* Focus on ongoing investments for sustained growth
* Planned $60-$65 billion expenditure on AI infrastructure
Expense Trajectory
* Estimated 2025 expenses: $114-$119 billion (vs. $95.1 billion in 2024)
* Infrastructure costs projected as the primary expense driver
Management Commentary
* CEO Zuckerberg emphasizes progress in AI, virtual reality, and social media
* CFO Li attributes expense growth to infrastructure and talent acquisition
Settlement and Other News
* $25 million settlement with Donald Trump over platform suspension
* CEO Zuckerberg attends President Trump's inauguration