Meta Platforms:Quarterly Results/2024 Q4: Difference between revisions

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 See also: [https://docs.google.com/spreadsheets/d/1UNG7ddMmZnKZK-Q0ePI1yPcKyutXw05gb3xVpS3jDJ8/edit?gid=1439776601#gid=1439776601 Meta Platforms Valuation Model] | [[Meta Platforms:Quarterly Results/2024 Q3]] | [[Meta Platforms:Quarterly Results/2024 Q2]] | [[Meta Platforms:Quarterly Results/2024 Q1]]
+== Earnings call summary ==
+=== AI ===
+* CEO Mark Zuckerberg said he believes this is the year when highly intelligent and more personalized AI assistant reaches more than 1 billion people.
+* He still expects Meta AI to be the leading AI assistant in the world, said it's now used by more people in the world than any other AI assistant.
+* Zuckerberg pointed out that he believes Meta AI to be the most transformative product they have ever build.
+* Zuckerberg said Llama 4 is making great progress in training and will have agentic capabilities.
+* '''Zuckerberg said he believes 2025 to be the year when it will become possible to build an AI engineering agent that has coding and problem-solving abilities of a mid-level engineer, an historic milestone that over time can be a very large market.'''
+* He pointed out that they have some fun surprises that people will likely like.
+* CFO Susan Li said Meta AI now has more then 700 million monthly actives.
+=== Q4 results and 2025 outlook ===
+* Li said Q4 expenses benefitted from a 13% favorable impact legal accrual reductions and year over year reduction in restructuring costs.
+* Online commerce vertical was the largest contributor to year over year growth in ad revenue.
+* Ad revenue growth was strongest in Rest of World (27%), followed by Asia-Pacific (23%), Europe (22%) and North America (18%).
+* '''Ad impressions (which rose 6%) was mainly driven by Asia-Pacific.'''
+* '''Average price per ad (which increased 14%) was mainly driven by increased advertiser demand, in part driven by improved ad performance but offset by impression growth, particularly from lower monetizing regions.'''
+* Cost of revenue rose 15% driven mostly by higher infrastructure costs.
+* Li said global video time grew by double-digit percentage rate year over year in Instagram in Q4, and they are seeing particular strength in the US.
+* Video time on Facebook also grew by double-digit rates y/y in Q4.
+* Li said that they see continued opportunities to drive video growth in 2025 through ongoing optimizations.
+* Li said Reels are being reshared over 4.5 billion times a day.
+* Li pointed out that they see impression growth opportunities over the long term through unmonetized surfaces like Threads.
+* Li said Threads ads is unlikely to be a meaningful driver of overall impression and revenue growth in 2025.
+=== Reality Labs ===
+* Zuckerberg said 2025 will be a year when they will determine if Ray-Ban Meta AI glasses will have "many hundreds of millions and eventually billions of AI glasses and become the next computing platform" or if it's just going to be another longer grind.
+* He said the number of people using Quest and Horizon has been growing steadily and they will also know a lot more about Horizon's trajectory at the end of the year.
+=== Year of intensity ===
+* Zuckerberg reiterated his earlier comments that 2025 is going to be a big year for them since the trajectory of most of their long-term investments will become a lot clearer.
+=== Family of Apps ===
+* Zuckerberg said he expects Threads to have over one billion users over the next several years.
+* Zuckerberg said Threads now has 320 million monthly actives and is adding 1 million sign-ups per day.
+* Zuckerberg said WhatsApp now has more than 100 million monthly actives in the US.
+=== Ad ranking and recommendation system ===
+* Li said the Andromeda they launched in the second half of 2024, which boosts the ranking process has led to an 8% increase in the quality of ads that they show to people.
+* '''Li said the adoption of Advantage+ shopping campaigns continues to grow. "Adoption of Advantage+ shopping campaigns continues to scale, with revenue surpassing a $20 billion annual run-rate and growing 70% year-over-year in Q4," she said.'''
+* As a result of the strong performance and interest of Advantage+ Shopping, they are testing a new format that will ensure Advantage+ is turned on from the beginning.
+* Li said more than 4 million advertisers are now using one of their generative AI ad creative tools, up from one million six months ago.
+* Li said their Image Animation tool launched in October has received great adoption, with hundreds of thousands of advertisers using it monthly.
+=== Capital expenditure ===
+=== Trump's administration ===
+* Zuckerberg is optimistic about Trump's administration. "We now have a U.S. administration that is proud of our leading companies, prioritizes American technology winning, and that will defend our values and interests abroad. And I'm optimistic about the progress and innovation this is can unlock," he said.
 == Management expectations and analysts estimates ==