Meta’s Q1 2025 performance report indicates a 16% increase in total revenue compared to the same period last year, reaching $42.314 billion. Net profit also surged by 35% to $16.644 billion.
The majority of Meta’s revenue stems from platform advertisements, amounting to $41.392 billion, marking a 16% increase. On the other hand, the Reality Labs or Metaverse business segment generated $412 million in revenue but incurred a loss of $4.21 billion.
The total number of users across all apps rose by 6% to 3.43 billion accounts. Ad impressions increased by 5%, with average ad prices rising by 10%.
CEO Mark Zuckerberg expresses confidence in the company’s ability to navigate the volatile global economic landscape. Meanwhile, CFO Susan Li notes a decline in advertising expenses from e-commerce companies in Asia selling products in America.
Meta plans to increase long-term investments (Capex) this year to $6.4-7.2 trillion from the previous projection of $6.0-6.5 trillion, primarily in AI data centers.
Threads now boasts more than 350 million monthly active users (MAUs). Despite expanding global ad displays on Threads, ad revenue remains a minor component for this fiscal year.
Meta AI has attracted over 1 billion users worldwide, with a premium monthly subscription service in the pipeline.
Source: Meta and CNBC
TLDR: Meta reports a substantial revenue increase in Q1 2025, driven by ad revenue growth and plans to ramp up long-term investments in AI infrastructure.
Leave a Comment