Technology
Meta Reports Second Quarter 2024 Results
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2 years agoon
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MENLO PARK, Calif., July 31, 2024 /PRNewswire/ — Meta Platforms, Inc. (Nasdaq: META) today reported financial results for the quarter ended June 30, 2024.
“We had a strong quarter, and Meta AI is on track to be the most used AI assistant in the world by the end of the year,” said Mark Zuckerberg, Meta founder and CEO. “We’ve released the first frontier-level open source AI model, we continue to see good traction with our Ray-Ban Meta AI glasses, and we’re driving good growth across our apps.”
Second Quarter 2024 Financial Highlights
Three Months Ended June 30,
% Change
In millions, except percentages and per share amounts
2024
2023
Revenue
$ 39,071
$ 31,999
22 %
Costs and expenses
24,224
22,607
7 %
Income from operations
$ 14,847
$ 9,392
58 %
Operating margin
38 %
29 %
Provision for income taxes
$ 1,641
$ 1,505
9 %
Effective tax rate
11 %
16 %
Net income
$ 13,465
$ 7,788
73 %
Diluted earnings per share (EPS)
$ 5.16
$ 2.98
73 %
Second Quarter 2024 Operational and Other Financial Highlights
Family daily active people (DAP) – DAP was 3.27 billion on average for June 2024, an increase of 7% year-over-year.Ad impressions – Ad impressions delivered across our Family of Apps increased by 10% year-over-year.Average price per ad – Average price per ad increased by 10% year-over-year.Revenue – Total revenue was $39.07 billion, an increase of 22% year-over-year. Revenue on a constant currency basis would have increased 23% year-over-year.Costs and expenses – Total costs and expenses were $24.22 billion, an increase of 7% year-over-year.Capital expenditures – Capital expenditures, including principal payments on finance leases, were $8.47 billion.Capital return program – Share repurchases were $6.32 billion of our Class A common stock and dividend payments were $1.27 billion.Cash, cash equivalents, and marketable securities – Cash, cash equivalents, and marketable securities were $58.08 billion as of June 30, 2024. Free cash flow was $10.90 billion.Headcount – Headcount was 70,799 as of June 30, 2024, a decrease of 1% year-over-year.
CFO Outlook Commentary
We expect third quarter 2024 total revenue to be in the range of $38.5-41 billion. Our guidance assumes foreign currency is a 2% headwind to year-over-year total revenue growth, based on current exchange rates.
We expect full-year 2024 total expenses to be in the range of $96-99 billion, unchanged from our prior outlook. For Reality Labs, we continue to expect 2024 operating losses to increase meaningfully year-over-year due to our ongoing product development efforts and investments to further scale our ecosystem.
While we do not intend to provide any quantitative guidance for 2025 until the fourth quarter call, we expect infrastructure costs will be a significant driver of expense growth next year as we recognize depreciation and operating costs associated with our expanded infrastructure footprint.
We anticipate our full-year 2024 capital expenditures will be in the range of $37-40 billion, updated from our prior range of $35-40 billion. While we continue to refine our plans for next year, we currently expect significant capital expenditures growth in 2025 as we invest to support our artificial intelligence research and product development efforts.
Absent any changes to our tax landscape, we expect our full-year 2024 tax rate to be in the mid-teens.
In addition, we continue to monitor an active regulatory landscape, including the increasing legal and regulatory headwinds in the EU and the U.S. that could significantly impact our business and our financial results.
Webcast and Conference Call Information
Meta will host a conference call to discuss the results at 2:00 p.m. PT / 5:00 p.m. ET today. The live webcast of Meta’s earnings conference call can be accessed at the Meta Investor Relations website at investor.fb.com, along with the earnings press release, financial tables, and slide presentation.
Following the call, a replay will be available at the same website. Transcripts of conference calls with publishing equity research analysts held today will also be posted to the investor.fb.com website.
Disclosure Information
Meta uses the investor.fb.com and about.fb.com/news/ websites as well as Mark Zuckerberg’s Facebook Page (facebook.com/zuck), Instagram account (instagram.com/zuck) and Threads profile (threads.net/zuck) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About Meta
Meta builds technologies that help people connect, find communities, and grow businesses. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram, and WhatsApp further empowered billions around the world. Now, Meta is moving beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology.
Contacts
Investors:
Kenneth Dorell
investor@meta.com / investor.fb.com
Press:
Ryan Moore
press@meta.com / about.fb.com/news/
Forward-Looking Statements
This press release contains forward-looking statements regarding our future business plans and expectations. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: the impact of macroeconomic conditions on our business and financial results, including as a result of geopolitical events; our ability to retain or increase users and engagement levels; our reliance on advertising revenue; our dependency on data signals and mobile operating systems, networks, and standards that we do not control; changes to the content or application of third-party policies that impact our advertising practices; risks associated with new products and changes to existing products as well as other new business initiatives, including our artificial intelligence initiatives and metaverse efforts; our emphasis on community growth and engagement and the user experience over short-term financial results; maintaining and enhancing our brand and reputation; our ongoing privacy, safety, security, and content review efforts; competition; risks associated with government actions that could restrict access to our products or impair our ability to sell advertising in certain countries; litigation and government inquiries; privacy, legislative, and regulatory concerns or developments; risks associated with acquisitions; security breaches; our ability to manage our scale and geographically-dispersed operations; and market conditions or other factors affecting the payment of dividends. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q filed with the SEC on April 25, 2024, which is available on our Investor Relations website at investor.fb.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. In addition, please note that the date of this press release is July 31, 2024, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.
For a discussion of limitations in the measurement of certain of our community metrics, see the section entitled “Limitations of Key Metrics and Other Data” in our most recent quarterly or annual report filed with the SEC.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: revenue excluding foreign exchange effect, advertising revenue excluding foreign exchange effect, and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.
We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.
Our non-GAAP financial measures are adjusted for the following items:
Foreign exchange effect on revenue. We translated revenue for the three and six months ended June 30, 2024 using the prior year’s monthly exchange rates for our settlement or billing currencies other than the U.S. dollar, which we believe is a useful metric that facilitates comparison to our historical performance.
Purchases of property and equipment; Principal payments on finance leases. We subtract both purchases of property and equipment, net of proceeds and principal payments on finance leases in our calculation of free cash flow because we believe that these two items collectively represent the amount of property and equipment we need to procure to support our business, regardless of whether we procure such property or equipment with a finance lease. We believe that this methodology can provide useful supplemental information to help investors better understand underlying trends in our business. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures.
For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the “Reconciliation of GAAP to Non-GAAP Results” table in this press release.
META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Revenue
$ 39,071
$ 31,999
$ 75,527
$ 60,645
Costs and expenses:
Cost of revenue
7,308
5,945
13,948
12,054
Research and development
10,537
9,344
20,515
18,725
Marketing and sales
2,721
3,154
5,285
6,198
General and administrative (1)
3,658
4,164
7,114
7,049
Total costs and expenses
24,224
22,607
46,862
44,026
Income from operations
14,847
9,392
28,665
16,619
Interest and other income (expense), net
259
(99)
624
(19)
Income before provision for income taxes
15,106
9,293
29,289
16,600
Provision for income taxes
1,641
1,505
3,455
3,102
Net income
$ 13,465
$ 7,788
$ 25,834
$ 13,498
Earnings per share:
Basic
$ 5.31
$ 3.03
$ 10.17
$ 5.24
Diluted
$ 5.16
$ 2.98
$ 9.86
$ 5.18
Weighted-average shares used to compute earnings per share:
Basic
2,534
2,568
2,540
2,577
Diluted
2,610
2,612
2,619
2,604
(1) The second quarter 2024 general and administrative expenses include a charge for the recent settlement with the State of Texas. The settlement amount is fully accrued as of June 30, 2024.
META PLATFORMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
June 30, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$ 32,045
$ 41,862
Marketable securities
26,035
23,541
Accounts receivable, net
14,505
16,169
Prepaid expenses and other current assets
3,846
3,793
Total current assets
76,431
85,365
Non-marketable equity securities
6,207
6,141
Property and equipment, net
102,959
96,587
Operating lease right-of-use assets
14,058
13,294
Goodwill
20,654
20,654
Other assets
9,929
7,582
Total assets
$ 230,238
$ 229,623
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$ 3,173
$ 4,849
Operating lease liabilities, current
1,917
1,623
Accrued expenses and other current liabilities
21,914
25,488
Total current liabilities
27,004
31,960
Operating lease liabilities, non-current
17,685
17,226
Long-term debt
18,389
18,385
Long-term income taxes
7,897
7,514
Other liabilities
2,500
1,370
Total liabilities
73,475
76,455
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital
78,270
73,253
Accumulated other comprehensive loss
(2,695)
(2,155)
Retained earnings
81,188
82,070
Total stockholders’ equity
156,763
153,168
Total liabilities and stockholders’ equity
$ 230,238
$ 229,623
META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Cash flows from operating activities
Net income
$ 13,465
$ 7,788
$ 25,834
$ 13,498
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
3,637
2,623
7,011
5,147
Share-based compensation
4,616
4,060
8,178
7,111
Deferred income taxes
(1,643)
(1,137)
(2,098)
(1,757)
Impairment charges for facilities consolidation, net
41
232
280
1,002
Other
(6)
212
(71)
204
Changes in assets and liabilities:
Accounts receivable
(1,171)
(1,424)
1,350
1,122
Prepaid expenses and other current assets
(84)
(54)
16
767
Other assets
54
37
(41)
67
Accounts payable
250
(51)
(862)
(1,155)
Accrued expenses and other current liabilities
(497)
5,174
(1,771)
5,268
Other liabilities
708
(151)
790
33
Net cash provided by operating activities
19,370
17,309
38,616
31,307
Cash flows from investing activities
Purchases of property and equipment, net
(8,173)
(6,134)
(14,573)
(12,957)
Purchases of marketable debt securities
(3,289)
(717)
(10,176)
(803)
Sales and maturities of marketable debt securities
3,233
1,816
7,858
2,351
Acquisitions of businesses and intangible assets
(57)
(83)
(129)
(527)
Other investing activities
(12)
(85)
(12)
(10)
Net cash used in investing activities
(8,298)
(5,203)
(17,032)
(11,946)
Cash flows from financing activities
Taxes paid related to net share settlement of equity awards
(3,208)
(1,692)
(6,370)
(2,701)
Repurchases of Class A common stock
(6,299)
(898)
(21,307)
(10,263)
Dividend payments
(1,266)
—
(2,539)
—
Proceeds from issuance of long-term debt, net
—
8,455
—
8,455
Principal payments on finance leases
(299)
(220)
(614)
(484)
Other financing activities
(106)
(353)
(115)
(231)
Net cash provided by (used in) financing activities
(11,178)
5,292
(30,945)
(5,224)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
(152)
(14)
(440)
71
Net increase (decrease) in cash, cash equivalents, and restricted cash
(258)
17,384
(9,801)
14,208
Cash, cash equivalents, and restricted cash at beginning of the period
33,284
12,420
42,827
15,596
Cash, cash equivalents, and restricted cash at end of the period
$ 33,026
$ 29,804
$ 33,026
$ 29,804
Reconciliation of cash, cash equivalents, and restricted cash to the
condensed consolidated balance sheets
Cash and cash equivalents
$ 32,045
$ 28,785
$ 32,045
$ 28,785
Restricted cash, included in prepaid expenses and other current assets
100
165
100
165
Restricted cash, included in other assets
881
854
881
854
Total cash, cash equivalents, and restricted cash
$ 33,026
$ 29,804
$ 33,026
$ 29,804
META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Supplemental cash flow data
Cash paid for income taxes, net
$ 5,929
$ 1,102
$ 6,559
$ 1,507
Cash paid for interest, net of amounts capitalized
$ 124
$ —
$ 245
$ 182
Non-cash investing and financing activities:
Property and equipment in accounts payable and accrued expenses and other
current liabilities
$ 3,229
$ 3,845
$ 3,229
$ 3,845
Acquisition of businesses and intangible assets in accrued expenses and
other current liabilities and other liabilities
$ 267
$ 217
$ 267
$ 217
Segment Results
We report our financial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes our virtual, augmented, and mixed reality related consumer hardware, software, and content.
The following table presents our segment information of revenue and income (loss) from operations:
Segment Information
(In millions)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Revenue:
Advertising
$ 38,329
$ 31,498
$ 73,965
$ 59,599
Other revenue
389
225
769
430
Family of Apps
38,718
31,723
74,734
60,029
Reality Labs
353
276
793
616
Total revenue
$ 39,071
$ 31,999
$ 75,527
$ 60,645
Income (loss) from operations:
Family of Apps
$ 19,335
$ 13,131
$ 36,999
$ 24,351
Reality Labs
(4,488)
(3,739)
(8,334)
(7,732)
Total income from operations
$ 14,847
$ 9,392
$ 28,665
$ 16,619
Reconciliation of GAAP to Non-GAAP Results
(In millions, except percentages)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
GAAP revenue
$ 39,071
$ 31,999
$ 75,527
$ 60,645
Foreign exchange effect on 2024 revenue using 2023 rates
371
265
Revenue excluding foreign exchange effect
$ 39,442
$ 75,792
GAAP revenue year-over-year change %
22 %
25 %
Revenue excluding foreign exchange effect year-over-year change %
23 %
25 %
GAAP advertising revenue
$ 38,329
$ 31,498
$ 73,965
$ 59,599
Foreign exchange effect on 2024 advertising revenue using 2023 rates
367
261
Advertising revenue excluding foreign exchange effect
$ 38,696
$ 74,226
GAAP advertising revenue year-over-year change %
22 %
24 %
Advertising revenue excluding foreign exchange effect year-over-year
change %
23 %
25 %
Net cash provided by operating activities
$ 19,370
$ 17,309
$ 38,616
$ 31,307
Purchases of property and equipment, net
(8,173)
(6,134)
(14,573)
(12,957)
Principal payments on finance leases
(299)
(220)
(614)
(484)
Free cash flow
$ 10,898
$ 10,955
$ 23,429
$ 17,866
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SOURCE Meta
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26.66%! Setting a New Record for Industrial-Scale TOPCon Cell Conversion Efficiency
JinkoSolar, in collaboration with the research team from the Ningbo Institute of Materials Technology and Engineering of the Chinese Academy of Sciences, successfully developed a dual-sided electrical synergy optimization strategy. This approach achieved a certified efficiency of up to 26.66% on M10-sized silicon wafers, setting a new efficiency record for industrial-scale TOPCon cells and significantly narrowing the gap between industrial-scale TOPCon cells and the theoretical efficiency of 29.4%.
Additionally, the research reduced carrier transport losses through a high-resistance boron emitter on the front side and an optimized fine-line grid design, while the back side employs an innovative double-layer tunneling silicon oxide/polysilicon structure on the rear side to effectively suppress performance degradation caused by silver paste puncture. Furthermore, by utilizing localized polysilicon thinning technology, the research achieved outstanding performance metrics, including an open-circuit voltage of 744.6 mV, a fill factor of 85.57%, and a bifaciality of 88.3%. This achievement provides a feasible and comprehensive solution for narrowing the efficiency gap between TOPCon cells and the theoretical limit, significantly enhancing the core competitiveness of TOPCon technology in the future photovoltaic market.
Reference link: Dual-side electrical refinement enables efficient industrial tunnel oxide passivating contact silicon solar cells:
https://www.nature.com/articles/s41560-026-01982-2
Certified Efficiency of 32.73%! Paving the Way for Scalable Compatibility of Perovskite/TOPCon Tandem Cells
JinkoSolar, in collaboration with the research team from Soochow University, has successfully developed a full-size bifacial TOPCon crystalline silicon solar cell with a certified photoconversion efficiency of 26.34%. This research abandons the traditional TOPCon cell design featuring a boron-diffused emitter on the front surface. Instead, it innovatively introduces patterned n-type TOPCon finger contacts on the front surface while retaining the full-area p-type TOPCon contact on the back. By localizing the polycrystalline silicon contact area, this structure significantly reduces parasitic absorption and recombination losses on the front surface, achieving a certified efficiency of 26.34% and significantly improving the open-circuit voltage.
Furthermore, to address the issues of poor contact performance and susceptibility to metal paste corrosion in P-type TOPCon, a “polysilicon/silicon dioxide/polysilicon” double-layer composite structure was designed. Combined with optimized rear-side polishing and a specially formulated silver paste, this structure not only achieves extremely low contact resistance and recombination current but, more importantly, the ultra-thin oxide layer in the middle effectively prevents silver crystal spikes from penetrating the silicon substrate, significantly enhancing the device’s reliability and high-temperature resistance. In the future, by improving the precision of laser patterning to further narrow the finger width and introducing localized contacts on the back side to reduce the polycrystalline silicon layer thickness, parasitic absorption can be reduced, and mass production efficiency is expected to approach 27%.
Using a high-efficiency bifacial TOPCon cell with a textured front surface as the bottom cell, the research team fabricated a monolithic perovskite/TOPCon tandem cell, achieving a certified efficiency of 32.73% and a high open-circuit voltage of 1.961 V. These results not only set a new performance record for this class of tandem cells but also demonstrated excellent long-term operational stability (maintaining 80% of the initial efficiency after 2,000 hours), proving the immense potential of this TOPCon technology route in tandem applications. They also provide a scalable and industrially compatible technical pathway for the development of higher-efficiency TOPCon and perovskite/TOPCon tandem photovoltaic modules.
Reference link: Bifacial tunnel oxide passivating contacts for silicon and perovskitesilicon tandem solar cells with improved efficiency:
https://www.nature.com/articles/s41560-026-02007-8
32.76%! Breaking Through the Efficiency Barrier for Industrial TOPCon Silicon-Based Perovskite Tandem Cells
To address the critical challenge of rapid perovskite crystallization and film quality degradation caused by the high thermal conductivity of industrial thin silicon substrates, JinkoSolar, in collaboration with the National University of Singapore and other research institutions, innovatively proposed a strategy to regulate the major organic cation (FA⁺) using a dual-mode-coupled ligand (MBT), successfully achieving effective control over crystallization kinetics. A perovskite/TOPCon tandem solar cell fabricated using this strategy was certified by the National Photovoltaic Industry Metrology and Testing Center (NPVM) with a conversion efficiency of 32.76%, approaching the current efficiency record for tandem photovoltaic cells. Additionally, the cell maintained 91% of its initial efficiency after 1,700 hours of continuous operation, demonstrating excellent long-term operational reliability.
This research is of significant importance as it achieves high efficiency (certified at 32.76%) in TOPCon silicon-back-contact cells, which hold the greatest potential for market dominance. Not only does it elevate the efficiency of perovskite/TOPCon tandem cells to new heights, but more importantly, it provides critical scientific insights and a practical pathway for integrating high-performance perovskite materials from the laboratory with market-dominant TOPCon silicon technology, marking a solid step toward the mainstream industrialization of perovskite/ crystalline silicon tandem technology toward mainstream industrialization. In the future, this strategy is expected to be combined with solution-based production processes — which offer the potential for large-scale fabrication and low costs — to drive the industrial application of these research findings.
Reference link: Additive-assisted perovskite crystallization on industrial TOPCon silicon for tandem solar cells with improved efficiency:
https://www.nature.com/articles/s41560-026-02010-z
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SOURCE JinkoSolar
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