Meta Platforms(US:META)2025-01-30 01:00Financial Performance - Total revenue for 2024 was $164.50 billion, an increase of 22% compared to 2023, driven by an increase in advertising revenue[292]. - Income from operations for 2024 was $69.38 billion, an increase of $22.63 billion, or 48%, compared to 2023[293]. - Net income was $62.36 billion, with diluted earnings per share (EPS) of $23.86 for the year ended December 31, 2024[296]. - Revenue increased by 18% in United States & Canada, 26% in Europe, 22% in Asia-Pacific, and 31% in Rest of World compared to 2023[312]. - Total revenue for 2024 was $164,501 million, a 22% increase from $134,902 million in 2023[350]. - Net income for 2024 was $62,360 million, representing a 59% increase from $39,098 million in 2023[350]. - Operating cash flow increased to $91,328 million in 2024, compared to $71,113 million in 2023, reflecting a 28% growth[449]. - Total assets grew to $276,054 million in 2024, a 20% increase from $229,623 million in 2023[437]. - Total stockholders' equity increased to $182,637 million in 2024, compared to $153,168 million in 2023, marking a 19% rise[437]. - Total liabilities increased to $93,417 million in 2024, up from $76,455 million in 2023, reflecting a 22% increase[437]. Advertising Revenue - Advertising revenue increased by $28,680 million, or 22%, in 2024, driven by an 11% increase in ad impressions delivered and a 10% increase in average price per ad[353]. - Family of Apps revenue rose by $29,350 million, or 22%, compared to 2023, primarily due to advertising revenue growth[352]. - The company’s advertising revenue is influenced by the number of ads shown, which may vary based on product monetization strategies[342]. - The company anticipates future advertising revenue growth will be driven by a combination of price increases and ad impressions delivered[353]. - The company generates substantially all revenue from advertising, with revenue recognition based on the delivery of ad impressions and user actions[455][464]. User Engagement - Family daily active people (DAP) was 3.35 billion on average for December 2024, an increase of 5% year-over-year[301]. - Worldwide Daily Active People (DAP) increased by 5% to 3.35 billion in December 2024 from 3.19 billion in December 2023[319]. - The Average Revenue Per Person (ARPP) for 2024 was $49.63, representing a 15% increase from 2023[322]. Expenses - Research and development expenses increased by $5,390 million, or 14%, in 2024, totaling $43,873 million, mainly due to higher employee compensation and infrastructure costs[360]. - General and administrative expenses decreased by $1,668 million, or 15%, in 2024, totaling $9,740 million, largely due to a favorable impact from legal-related costs[364]. - Cost of revenue increased by $4,202 million, or 16%, in 2024, totaling $30,161 million, primarily due to higher operational expenses[358]. - Advertising expenses totaled $2.06 billion in 2024, slightly increasing from $2.02 billion in 2023, but down from $2.65 billion in 2022[480]. Cash Flow and Capital Expenditures - Cash, cash equivalents, and marketable securities were $77.81 billion as of December 31, 2024[300]. - Cash, cash equivalents, and marketable securities increased by $12.41 billion to $77.81 billion as of December 31, 2024, driven by $91.33 billion generated from operations[378]. - Free cash flow (FCF) for 2024 was $52.103 billion, compared to $43.010 billion in 2023, indicating strong operational performance[388]. - Cash used in investing activities totaled $47.150 billion in 2024, primarily for $37.26 billion in property and equipment purchases[381]. - The company anticipates capital expenditures of approximately $60 billion to $65 billion in 2025 to support core business and generative AI efforts[382]. Debt and Liabilities - Long-term debt was $28.83 billion as of December 31, 2024[300]. - As of December 31, 2024, the company had long-term debt of $29.0 billion, with future interest payment obligations of $1.39 billion short-term and $28.10 billion long-term[392]. - The company reported foreign currency exchange net losses of $690 million in 2024, reflecting exposure to currency fluctuations[402]. - Unrecognized tax benefits as of December 31, 2024, totaled $9.99 billion, primarily related to research tax credits and transfer pricing uncertainties[376]. Legal and Regulatory Matters - The company is involved in legal proceedings and regulatory inquiries that may lead to significant changes in estimates and judgments regarding potential losses[331]. - The company has received notices from the IRS regarding transfer pricing agreements, which could result in additional federal tax liabilities if the IRS prevails[423]. - The company is involved in various legal proceedings and claims, with potential losses that are reasonably possible but cannot be estimated at this time[420]. Internal Controls and Reporting - The company maintains effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria[428]. - The company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the position will be sustained upon examination[479].