Meta’s Q3: Revenue and Net Profit Both Exceed Expectations
Meta had an outstanding performance in the third quarter, with significant growth driven by AI applications, further consolidating its leadership in advertising and technology.
Meta Platforms (META) recently announced its third-quarter financial report, which performed well. The company's revenue reached $40.6 billion, a significant increase from $34.15 billion in the same period last year, and exceeded analysts' expectations of $40.27 billion. At the same time, net profit climbed to $15.7 billion, significantly higher than the estimated $13.58 billion, showing significant growth driven by artificial intelligence (AI) applications, further consolidating its leadership in advertising and technology.
Advertising business is still Meta's main source of revenue, achieving a 20% annual growth this quarter, reaching $39.9 billion, slightly higher than the market forecast of $39.56 billion.
CEO Mark Zuckberg pointed out that the main driving factor of this quarter's performance was the advancement of AI technology, including its application in Meta applications and business fields, the growth of Meta AI and Llama platforms, and the launch of AI-driven smart glasses, showing Meta's significant achievements in technological innovation.
Meta is vigorously increasing its investment in the field of AI to enhance its long-term competitiveness in future technological development. Meta raised the lower limit of its full-year 2024 capital expenditure forecast from $37 billion to a range of $38 billion to $40 billion, indicating its firm determination to develop AI technology and infrastructure, and expecting these investments to bring significant benefits in the future.
Among many technology companies in Silicon Valley, Meta's current investment expenditure ranks among the top, reflecting its emphasis on AI technology as a core competitiveness.
In the upcoming holiday sales season, Meta expects fourth-quarter revenue to be between $45 billion and $48 billion, in line with market analysts' forecasts, showing the company's high confidence in fourth-quarter performance.
The market's expectations for Meta's growth in AI technology applications and advertising business will have a positive impact on the overall technology sector.
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