Meta Continues to Thrive: Record Earnings Driven by Advertising and User Growth

Meta, the technology giant behind Facebook, Instagram, WhatsApp, and Threads, has reported staggering financial results for 2024, surpassing expectations with record-breaking revenue and profits. The company's success is largely attributed to the strength of its advertising business, which accounted for a whopping 98% of its total income.

Meta's revenue surged by an impressive 22% year-over-year, reaching a remarkable $164.5 billion in 2024. This remarkable growth was fueled by a surge in the number of users across its platforms. As of December 2024, Meta boasts an impressive 3.35 billion active users, a 5% increase compared to the previous year.

In addition to the impressive advertising revenue, Meta's core applications, which include Facebook, Instagram, and WhatsApp, generated an operating profit of $87.1 billion. However, the company's Reality Labs division, which is responsible for developing the metaverse, continues to face challenges, incurring substantial operating losses of $17.7 billion in 2024.

Despite the setbacks in the metaverse, Meta remains optimistic about the future. The company's founder and CEO, Mark Zuckerberg, expressed enthusiasm for the progress made in artificial intelligence (AI), virtual reality glasses, and the evolution of social media. Meta plans to continue investing heavily in these areas to drive future growth.

Financial Highlights:

  • Revenue: $164.5 billion (22% increase year-over-year)
  • Profit: $62.36 billion (59% increase year-over-year)
  • Advertising revenue: 98% of total revenue
  • Reality Labs operating loss: $17.7 billion
  • Free cash flow: $52.1 billion in 2024
  • Cash on hand: $77.8 billion

Looking Ahead:

Meta expects its total revenue for the first quarter of 2025 to range between $39.5 billion and $41.8 billion, representing an 8-15% growth year-over-year. The company anticipates stronger growth throughout 2025 due to strategic investments in its core business.

Meta acknowledges the evolving regulatory landscape and potential headwinds from legal and regulatory challenges in the European Union and the United States that could impact its operations and financial performance.