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== Earnings call summary ==
== Earnings call summary ==
Sources: [https://events.q4inc.com/attendee/442520146 Q4 2024 Webcast] | [https://seekingalpha.com/article/4753159-meta-platforms-inc-meta-q4-2024-earnings-call-transcript Q4 2024 Earnings Call Transcript]


=== AI ===
=== AI ===
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* He pointed out that they have some fun surprises that people will likely like.
* 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.
* CFO Susan Li said Meta AI now has more then 700 million monthly actives.
* '''Zuckerberg said (Q&A) that he doesn't think that 2025 will be an year when we will see extensive usage of an AI agent.''' '''"I don't think you're going to see this year like an AI engineer that is extremely widely deployed, changing all of development. I think this is going to be the year where that really starts to become possible and lays the groundwork for a much more dramatic change in '26 and beyond," he said.'''
* Zuckerberg said (Q&A) that he continues to be optimistic about Open Source and thinks that it's working. He said that the news on DeepSeek have strengthened their conviction.
* Zuckerberg said (Q&A) that they are still digesting a number of novel things that DeepSeek did and are hoping to implement a number of advances they made in their model.


=== Q4 results and 2025 outlook ===
=== Q4 results and 2025 outlook ===
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* Li said Threads ads is unlikely to be a meaningful driver of overall impression and revenue growth in 2025.
* Li said Threads ads is unlikely to be a meaningful driver of overall impression and revenue growth in 2025.


=== Reality Labs ===
=== Capital expenditure and total expenses ===
* Li said they are pursuing capital efficiency by extending the useful life of their servers and related equipment and that this will enable them to use their " non-AI and AI servers for a longer period of time before replacing them, which we estimate will be approximately 5.5 years." However, the capex and depreciation savings from this efficiency program have already been included in their guidance.
* They are also pursuing efficiency by deploying their custom MTIA silicon in areas where they can achieve a lower cost of compute.
* The focus continues to be adding technical support. Li said '''in Q4, nearly 90% of their year-over-year headcount growth was within the R&D function, the remaining went to infrastructure headcount.'''
* Li said their efficiency focus in the last two years has led to significant improvement in internal processes and developer tools. '''She said they now have an AI-powered coding assistant, which enables developers to write codes faster.'''
* '''Zuckerberg said it's too early to have a strong opinion on the trajectory of infrastructure and Capex following DeepSeek's news but he thinks that investing heavily on them is going to be a strategic advantage over time. He thinks that the cost of Ai might shift in future from pre-training the model to inference. He also noted that they will implement AI in their core products ( feeds and ad products) which are used by billions of people, and that will be costly.'''


* 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.
=== Advertising ===
* 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 ===
* '''Li said (Q&A) they continue to see healthy cost per action trends for advertisers.'''
* Li pointed out (Q&A) that they haven't seen any noticeable impact from their content policy changes on advertiser spend.
* '''Li said (Q&A) that they continue to see strong advertiser demand.'''


* 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.  
=== 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.


=== Family of Apps ===
=== Family of Apps ===
* Zuckerberg said he expects Threads to have over one billion users over the next several years.
* 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 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.
* Zuckerberg said WhatsApp now has more than 100 million monthly actives in the US.
* Zuckerberg said he thinks there are a lot of opportunities to make Facebook more culturally influential and that this will be one of his focus areas this year.
* Li said WhatsApp continues to see the strongest usage of Meta AI.


=== Ad ranking and recommendation system ===
=== Reality Labs ===


* 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.  
* 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.
* '''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.'''
* 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.
* 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 and total expenses ===
=== Year of intensity ===


* Li said they are pursuing capital efficiency by extending the useful life of their servers and related equipment and that this will enable them to use their " non-AI and AI servers for a longer period of time before replacing them, which we estimate will be approximately 5.5 years." However, the capex and depreciation savings from this efficiency program have already been included in their guidance.
* 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.  
* They are also pursuing efficiency by deploying their custom MTIA silicon in areas where they can achieve a lower cost of compute.
* The focus continues to be adding technical support. Li said '''in Q4, nearly 90% of their year-over-year headcount growth was within the R&D function, the remaining went to infrastructure headcount.'''
* Li said their efficiency focus in the last two years has led to significant improvement in internal processes and developer tools. '''She said they now have an AI-powered coding assistant, which enables developers to write codes faster.'''


=== Trump's administration ===
=== Trump's administration ===
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