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Meta Platforms:Quarterly Results/2025 Q2: Difference between revisions
→Q2 2025 Earnings Call Summary
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* '''Zuckerberg said the strong performance this quarter was mainly due to AI.''' "On advertising, the strong performance this quarter is largely thanks to AI unlocking greater efficiency and gains across our ads system." | * '''Zuckerberg said the strong performance this quarter was mainly due to AI.''' "On advertising, the strong performance this quarter is largely thanks to AI unlocking greater efficiency and gains across our ads system." | ||
* Zuckerberg said they expanded their "new AI-powered recommendation model for ads to new surfaces and improved its performance by using more signals and a longer context." This led to 5% increased in ad conversions in Instagram and 3% on Facebook. | * '''Zuckerberg said they expanded their "new AI-powered recommendation model for ads to new surfaces and improved its performance by using more signals and a longer context." This led to 5% increased in ad conversions in Instagram and 3% on Facebook.''' | ||
* Zuckerberg said they are seeing good progress with AI for ad creative, with a meaningful percent of ad revenue coming from campaigns using Generative AI tools. | * Zuckerberg said they are seeing good progress with AI for ad creative, with a meaningful percent of ad revenue coming from campaigns using Generative AI tools. | ||
* Zuckerberg said advancements in recommendation systems have increased time spent on Facebook by 5% and 6% on Instagram. | * Zuckerberg said advancements in recommendation systems have increased time spent on Facebook by 5% and 6% on Instagram. | ||
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* CFO Susan Li said they expect the introduction of ads in Status will be gradual this year and next year, with low levels of ads initially. | * CFO Susan Li said they expect the introduction of ads in Status will be gradual this year and next year, with low levels of ads initially. | ||
* Li said they expect WhatsApp ads to fetch lower ad price than Facebook and Instagram for the foreseeable future given that WhatsApp is skewed towards lower monetization regions and limited data for ad tracking. | * Li said they expect WhatsApp ads to fetch lower ad price than Facebook and Instagram for the foreseeable future given that WhatsApp is skewed towards lower monetization regions and limited data for ad tracking. | ||
* As such, they don't expect WhatsApp to be a meaningful contributor of revenue growth for the next few years. | * '''As such, they don't expect WhatsApp to be a meaningful contributor of revenue growth for the next few years.''' | ||
==== Business messaging ==== | ==== Business messaging ==== | ||
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* Li said infrastructure will be single largest contributor to 2026 expense growth (Q&A). | * Li said infrastructure will be single largest contributor to 2026 expense growth (Q&A). | ||
* Li said they expect CapEx to be in short-lived assets in 2025 and 2026 than it has been in prior years (Q&A). | * Li said they expect CapEx to be in short-lived assets in 2025 and 2026 than it has been in prior years (Q&A). | ||
* Zuckerberg | * '''Analyst Doug Anmuth with JPMorgan said Susan Li's comments suggest CapEx of $100 million. Li didn't deny it while Zuckerberg agreed that the investment they are making is massive (Q&A).''' | ||
* Li said they expect to finance a large part of the CapEx themselves but they are also looking to include external financing (Q&A). | * Li said they expect to finance a large part of the CapEx themselves but they are also looking to include external financing (Q&A). | ||
* Li said servers will be the biggest bulk of CapEx (Q&A). | * Li said servers will be the biggest bulk of CapEx (Q&A). | ||