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Meta Platforms:Quarterly Results/2024 Q1: Difference between revisions
Meta Platforms:Quarterly Results/2024 Q1 (view source)
Revision as of 11:27, 25 April 2024
, 25 April 2024→Earnings Call Summary
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* They are hearing good feedback on business AIs (Q&A). | * They are hearing good feedback on business AIs (Q&A). | ||
* They have seen a large adoption of the GenAI image expansion AI feature with small businesses. This will remain a big focus for them in 2024. (Q&A) | * They have seen a large adoption of the GenAI image expansion AI feature with small businesses. This will remain a big focus for them in 2024. (Q&A) | ||
* Regarding their partnership with Google and Microsoft, Zuckerberg said that's only meant to give Meta AI real-time information and that they are not working on search ads or something related (Q&A). | |||
* Zuckerberg doesn't think business messaging will be a next quarter or the quarter after scaling it but not a five-year opportunity either (Q&A). | |||
* Zuckerberg said their ambition and optimism on Meta AI has grown. | |||
* Their plan for Meta AI is to evolve it from | |||
=== Advertising and recommendation systems === | === Advertising and recommendation systems === | ||
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* '''Meta Lattice (deployed last year), which consolidates smaller and more specialized models into larger models that can better learn characteristics that improve ad performance across Feeds and Reels and multiple types of ads and objectives at the same time led to improved ad performance over the course of 2023. They plan to enhance its performance in 2024 and add more objectives such as web and ROAS.''' (Q&A) | * '''Meta Lattice (deployed last year), which consolidates smaller and more specialized models into larger models that can better learn characteristics that improve ad performance across Feeds and Reels and multiple types of ads and objectives at the same time led to improved ad performance over the course of 2023. They plan to enhance its performance in 2024 and add more objectives such as web and ROAS.''' (Q&A) | ||
* Reels remain a positive contributor to overall revenue (Q&A). | * Reels remain a positive contributor to overall revenue (Q&A). | ||
* Advantage+ Audience has led to a 28% decrease in cost per click compared to regular targeting. | |||
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=== Metaverse === | === Metaverse === | ||
* Metaverse continues to remain one of their long-term focus, but it seems they are now focusing more on AR glasses (Aron's thought). | * Metaverse continues to remain one of their long-term focus, but it seems they are now focusing more on AR glasses (Aron's thought). | ||
* They are beginning to see AI initiatives increasingly overlap with their Reality Labs project. | * They are beginning to see AI initiatives increasingly overlap with their Reality Labs project. | ||
* One of the bigger areas they are investing on in Realitity Labs is glasses. "We think that that's going to be a really important platform for the future," Zuckerberg said. | |||
=== Q1 Results and future outlook === | === Q1 Results and future outlook === | ||
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* Pricing growth (+6%) was driven by advertiser demand, which was partially offset by strong impression growth, particularly from lower-monetizing regions and surfaces. | * Pricing growth (+6%) was driven by advertiser demand, which was partially offset by strong impression growth, particularly from lower-monetizing regions and surfaces. | ||
* Family of Apps other revenue rose 85% y/y to $380 million, driven by business messaging revenue growth from WhatsApp Business Platform. | * Family of Apps other revenue rose 85% y/y to $380 million, driven by business messaging revenue growth from WhatsApp Business Platform. | ||
* '''CFO Susan Li said growt in spend among Chinese advertisers remained strong in Q1, driven by online commerce and gaming. She didn't give outlook but said "they are lapping periods of increasingly strong demand over the course of 2024 given the recovery of China-based advertisers in 2023 from their prior pandemic-driven headwinds."''' (Q&A) | |||
* '''They didn't give guidance for the full year 2024 but said it will influence by a number of factors such as macro conditions which is hard to predict and that they will be lapping periods of increasingly strong demand.''' (Q&A) | |||
* Li said they grew conversions in Q1 faster than they grew impressions (Q&A). | |||
* Li said they follow an ROI-driven approach when it comes to core AI work but on strategic bets (GenAI) they are still much earlier on the return curve (Q&A). | |||
=== Regulatory === | === Regulatory === | ||
* '''They have a jury trial in June brought by the State of Texas regarding the use of facial recognition technology. They said this "could ultimately result in a material loss."''' | * '''They have a jury trial in June brought by the State of Texas regarding the use of facial recognition technology. They said this "could ultimately result in a material loss."''' | ||
=== TikTok === | |||
* Li said it's still early to assess the impact that TikTok ban will have on the business (Q&A). | |||
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