{"id":14512,"date":"2024-04-25T07:49:48","date_gmt":"2024-04-25T02:19:48","guid":{"rendered":"https:\/\/bigbreakingwire.in\/metas-revenue-outlook-miss-sends-stock-plummeting-19-in-after-hours-trading\/"},"modified":"2024-04-25T07:59:13","modified_gmt":"2024-04-25T02:29:13","slug":"metas-revenue-outlook-miss-sends-stock-plummeting-19-in-after-hours-trading","status":"publish","type":"post","link":"https:\/\/bigbreakingwire.in\/metas-revenue-outlook-miss-sends-stock-plummeting-19-in-after-hours-trading\/","title":{"rendered":"Meta’s Revenue Outlook Miss Sends Stock Plummeting 19% in After-Hours Trading"},"content":{"rendered":"
<\/div>\n

Meta, led by Mark Zuckerberg, experienced a sharp decline of up to 15% in after-hours trading following a Q2 revenue guidance miss.

The company anticipates Q2 revenue to be in the range of $36.5 billion to $39 billion, with the midpoint falling short of analysts’ average estimate of $38.3 billion at $37.75 billion.

Although Meta no longer discloses daily and monthly active users, it provided data on “family daily active people,” which reached 3.24 billion in the quarter, reflecting a 7% year-on-year growth.<\/p>\n\n\n\n

1.<\/strong> Earnings Performance:<\/strong>
\u00a0\u00a0 – Meta Platforms exceeded earnings per share (EPS) estimates at $4.71, surpassing the expected $4.30.
\u00a0\u00a0 – Revenue also outperformed expectations, reaching $36.46 billion against an estimate of $36.12 billion.
\u00a0\u00a0 – Operating margin stood at 38%, slightly above the estimated 37.2%.

2. Outlook:<\/strong>
\u00a0\u00a0 – However, the company’s Q2 revenue forecast of $36.5 billion to $39 billion fell short of the estimated $38.29 billion.
\u00a0\u00a0 – Additionally, Meta revised its full-year 2024 capital expenditure plan to $35 billion to $40 billion, up from the previous range of $30 billion to $37 billion.

3. Segment Revenue Breakdown:<\/strong>
\u00a0\u00a0 – Advertising revenue hit $35.64 billion, slightly surpassing the estimated $35.57 billion.
\u00a0\u00a0 – The Family of Apps revenue reached $36.02 billion, exceeding the expected $35.53 billion.
\u00a0\u00a0 – Reality Labs revenue fell short of estimates at $440 million, compared to an estimated $494.1 million.
\u00a0\u00a0 – Other revenue, however, exceeded expectations at $380 million, surpassing the estimated $300.1 million.

4. Financial Performance Metrics:<\/strong>
\u00a0\u00a0 – While the Family of Apps operating income missed estimates at $17.66 billion, Reality Labs’ operating loss of $3.85 billion was better than the estimated $4.51 billion.

5. User Engagement:<\/strong>
\u00a0\u00a0 – Average Family Service Users per Day totaled 3.24 billion, slightly exceeding the estimated 3.16 billion.

6. CEO Commentary:<\/strong>
\u00a0\u00a0 – Mark Zuckerberg highlighted Meta’s ongoing investment in Reality Labs, expecting operating losses to increase year-over-year due to product development efforts.
\u00a0\u00a0 – He emphasized the importance of accelerating infrastructure investments to support Meta’s AI roadmap.

7. Additional Insights:<\/strong>
\u00a0\u00a0 – Dividend payments during the quarter amounted to $1.27 billion.
\u00a0\u00a0 – Ad impressions across apps increased by 20% year-over-year.

8. Key Takeaways from Earnings Call:<\/strong>
\u00a0\u00a0 – Zuckerberg emphasized significant investments in AI, anticipating major expenses before new products generate revenue.
\u00a0\u00a0 – He acknowledged Meta’s historically volatile stock during similar phases of new product investment.
\u00a0\u00a0 – The company aims to monetize AI services once they achieve scale, with revenue from Advantage Plus campaigns doubling over the past year.
\u00a0\u00a0 – Meta is actively pursuing AI-driven business initiatives, including expanding business messaging and introducing new advertising options and access to larger AI models.
\u00a0\u00a0 – The CFO highlighted ongoing tests of AI chatbots for business messaging on WhatsApp and Messenger.
\u00a0\u00a0 – Building leading AI capabilities is viewed as a multi-year effort, with Zuckerberg expressing increased optimism about Meta’s AI potential since the last report.<\/p>\n\n\n\n

$META’s Year of Efficiency is Over as it Pivots to Support the AI Roadmap!<\/strong>

\u2014 FY’24 Capital Expenditures: $35B – $40B (Previously $30B – $37B)

\u2014 FY’24 Total Expenses: $96B – $99B (Increased from $94B – $99B)

In summary, while Meta’s Q1 earnings exceeded expectations in several areas, concerns arise from a disappointing Q2 revenue forecast and increased capital expenditure for AI infrastructure. Nevertheless, the company remains optimistic about its AI initiatives and their potential for future monetization.<\/p>\n","protected":false},"excerpt":{"rendered":"

Meta, led by Mark Zuckerberg, experienced a sharp decline of up to 15% in after-hours trading following a Q2 revenue guidance miss. The company anticipates…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[618,31,616,619,1,39],"tags":[3622,3623,3612,3625,3610,3620,3624,3629,3558,3618,3608,3621,1037,3631,1527,3609,3613,3616,3607,3619,3628,3630,2023,3626,3627,2024,3556,2718,3615,2572,3106,3236,3614,1240,3611,3617,2767],"class_list":["post-14512","post","type-post","status-publish","format-standard","hentry","category-brokerage-reports","category-business","category-stock-in-news","category-stocks-in-news","category-tech","category-world","tag-ad-impressions","tag-advantage-plus-campaigns","tag-advertising-revenue","tag-ai-chatbots","tag-ai-development","tag-ai-roadmap","tag-ai-driven-business-initiatives","tag-ambition","tag-capital-expenditures","tag-ceo-commentary","tag-dau","tag-dividend-payments","tag-earnings","tag-emerging-technologies","tag-eps","tag-expenses","tag-family-of-apps","tag-financial-performance-metrics","tag-highlights","tag-infrastructure-investments","tag-leading-ai-company","tag-long-term-development","tag-mark-zuckerberg","tag-messaging","tag-messenger","tag-meta-platforms","tag-operating-margin","tag-optimism","tag-other-revenue","tag-outlook","tag-q1-2024","tag-q2","tag-reality-labs","tag-revenue","tag-segment-revenue","tag-user-engagement","tag-whatsapp","entry","rows"],"jetpack_publicize_connections":[],"modified_by":null,"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pfgCxS-3M4","jetpack_sharing_enabled":true,"jetpack_likes_enabled":false,"_links":{"self":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts\/14512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/comments?post=14512"}],"version-history":[{"count":0,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts\/14512\/revisions"}],"wp:attachment":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/media?parent=14512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/categories?post=14512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/tags?post=14512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}