Meta Reality Labs Q1 2024 Earnings Report Shows 29.794% Year-over-Year Revenue Growth

(XR Navigator Information)Meta Platforms announced its 2024 quarterly report on April 25, 2024, after the U.S. stock market closed. Among other things.Reality Labs在Q1季度的营收为4.4亿美元，同比增加29.794%，但低于marketExpected $513 million.Reality Labs reported a loss of -$3.846 billion in Q1, narrowing by 3.657% year-over-year and better than the -$4.31 billion loss expected by the market.

Overall, Meta Group's first-quarter revenue of $36.46 billion topped analysts' expectations of $36.12 billion, a year-over-year increase of 27%, marking not only the fifth consecutive quarter of accelerating revenue growth, but also the fastest rate of expansion in the three years since 2021. In addition, profit rose 91% year-on-year to $13.82 billion, while net income rose 117% year-on-year to $12.37 billion.

However, despite higher-than-expected group revenue and earnings in the first quarter and accelerated growth in core advertising revenue, this company expects second-quarter revenue of $36.5 billion to $39 billion, the mid-point of the range weaker than the market's expectations of $38.24 billion or year-on-year growth of $20%, and investing in AI has caused it to sharply increase its capex forecasts for the year, with Meta shares plummeting after the bell 18%.

1. Revenue

Reality Labs reported revenue of $440 million in the Q1 quarter, up 29.794% year-over-year, but below market expectations of $513 million. Commenting on the quarter's year-over-year growth, Meta said, "This record revenue was driven byQuestdriven by headset sales."

2. Profit/loss

Reality Labs reported a loss of -$3.846 billion in Q1, narrowing by 3.657% year-over-year and better than the market's expectation of a -$4.31 billion loss. Since announcing its segmented earnings report, Reality Labs' cumulative losses have reached about $42 billion.

3. Financial statements

In its earnings statement, Meta said it made significant progress in the quarter on its long-term strategy for artificial intelligence and the metaverse, which is expected to change the way people interact with Meta's services for years to come.

The company again reiterated that, similar to previous quarters, it expects Reality Labs' operating loss to increase significantly year-over-year due to "ongoing product development efforts and our investments in further expanding our ecosystem," and that it expects this year's capital expenditures, as a result of accelerated infrastructure investments to support the AI roadmap, to be be revised significantly higher to $35 billion to $40 billion (previous guidance was $30 billion to $37 billion). Additionally, Meta expects capex to continue to increase in 2025.