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Meta Platforms:Quarterly Results/2025 Q1: Difference between revisions
→Q1 2025 Meta Earnings Call Summary
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=== Macro uncertainty === | === Macro uncertainty === | ||
* CEO Mark Zuckerberg said the business is performing very well and thinks that they are well positioned to navigate macro uncertainty. "Our business is also performing very well, and I think we're well-positioned to navigate the macroeconomic uncertainty," he said. | * '''CEO Mark Zuckerberg said the business is performing very well and thinks that they are well positioned to navigate macro uncertainty.''' "Our business is also performing very well, and I think we're well-positioned to navigate the macroeconomic uncertainty," he said. | ||
* '''CFO Susan Li said there is uncertainty but the $3 billion in their guidance range aims to factor it.''' "On the Q2 guide, there is uncertainty, obviously, on how the macro environment will evolve over time and how that could impact different segments of our business. Our Q2 revenue outlook aims to factor that in and partly -- that's partly why the $3 billion range reflects the potential for a wider range of outcomes," she said. | |||
* '''Li said they have started seeing reduced ad spend in the US from Asia-based advertisers in anticipation of de minimis rule going away in May 2nd.''' "We have seen some reduced spend in the US from Asia-based e-commerce exporters, which we believe is in anticipation of the de minimis exemption going away on May 2nd. A portion of that spend has been redirected to other markets, but overall spend for those advertisers is below the levels prior to April. But our Q2 outlook reflects the trends we're seeing so far in April, which have generally been healthy. So it's very early and hard to know how things will play out over the quarter, and certainly harder to know that for the rest of the year." | |||
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=== CapEx === | === CapEx === | ||
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* Li said majority of their CapEx this year will go to both generative AI and core business, with the majority going to the core business. | * Li said majority of their CapEx this year will go to both generative AI and core business, with the majority going to the core business. | ||
* Li said they continue to deploy CapEx in a way that grants them the maximum flexibility to react to technology and industry developments. | * Li said they continue to deploy CapEx in a way that grants them the maximum flexibility to react to technology and industry developments. | ||
* Li said even with the capacity they are bringing in 2025, they are having a hard time meeting the compute demands across the company. | |||
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=== Artificial Intelligence (AI) === | === Artificial Intelligence (AI) === | ||
==== Llama 4 and Meta AI ==== | |||
* '''Zuckerberg said that in building Llama 4, they focused on low latency and context window. Low latency will aid voice conversation while context window will help in their personalization efforts. High context window will incorporate all the background that a user has shared across Meta Apps.''' | |||
* Zuckerberg said the reason they want to build Llama out is because they want to control their own destiny by not depending on another company for something that is critical. They also want to be able to optimize it based on their user cases. | |||
* Zuckerberg said they cannot do distillation from other closed models. | |||
* Li said Meta continues to see the biggest usage in WhatsApp followed by Facebook. | |||
* Zuckerberg said the standalone Meta AI app will serve some people who want to use it outside an app like WhatsApp. It will also be particularly important in the US where they have a low number of WhatsApp users. | |||
==== AI opportunities ==== | ==== AI opportunities ==== | ||