CHART: Meta Posts Strong Q2 Results in 2024, Defies Market Expectations

Emmanuel Oyedeji -
  • Meta's Q2 revenue surges 22% to $39.07 billion, beating estimates.
  • Net income jumps 73% to $13.47 billion, with EPS of $5.16.
  • Daily active users reach 3.27 billion, a 7% year-over-year increase.

Meta Platforms, the parent company of Facebook and Instagram, delivered a resounding performance in the second quarter of 2024, defying market expectations and sending its stock soaring.

The company's revenue clocked in at $39.07 billion, surging 22% year-over-year, and surpassing analyst forecasts of $38.31 billion. This marked the fourth straight quarter of growth. Meanwhile, net income jumped 73% to $13.47 billion from $7.79 billion in the prior year, translating to earnings per share of $5.16, outperforming the expected $4.73.

Meta's user base also continued to expand, with daily active people (DAP) across its family of apps (Facebook, Instagram, WhatsApp and Messenger) reaching 3.27 billion in June, an increase of 7% year-over-year.

A key driver of Meta’s profitability was its advertising business. Ad revenue surged 22% year-over-year to $32 billion. This robust performance stands in stark contrast to Alphabet, whose Google ad sales increased by a more modest 11% during the same period.

Furthermore, Meta's strategic focus on cost reduction yielded impressive results. Operating income climbed a notable 58% to $14.9 billion, with its operating margin expanding to 38% from 29%. This financial discipline allowed Meta to reinvest heavily in cutting-edge technologies, including artificial intelligence and the metaverse.