Meta Reports Q4 Beat, Forecasts Revenue Slowdown
Meta Platforms (META) released its fourth-quarter earnings report on Wednesday, surpassing expectations. However, the company predicted a deceleration in revenue growth for the current quarter and anticipated a faster increase in expenses in 2025.
Key Results:
* Earnings Per Share (EPS): $8.02 (vs. $6.75 consensus estimate)
* Revenue: $48.4 billion (vs. $46.9 billion consensus estimate)
* Annual Net Income: $62.4 billion (up 59% from 2023)
* Q1 Revenue Forecast: $39.5 billion - $41.8 billion (growth of 8%-15% YoY)
* 2025 Expense Range: $114 billion - $119 billion (vs. $95.1 billion in 2024)
Outlook:
Meta declined to provide a full-year revenue forecast but indicated that investments in its core business would support strong revenue growth in 2025. This comes shortly after CEO Mark Zuckerberg announced plans to invest heavily in AI infrastructure, with spending between $60 billion and $65 billion in 2024.
CFO Susan Li attributed the expected expense growth in 2025 primarily to infrastructure costs and employee compensation, particularly in technical areas such as AI, infrastructure, and regulation.
Other News:
* The company reached a $25 million settlement with President Donald Trump over a lawsuit related to his suspension from Meta platforms after the January 6th Capitol riot.
* Zuckerberg emphasized progress in AI, augmented reality glasses, and the future of social media, expressing optimism for further growth in 2025.