Financial Performance - Total revenue for Q1 2025 was $42.31 billion, a 16% increase compared to Q1 2024, driven by a rise in advertising revenue [107]. - Income from operations for Q1 2025 was $17.56 billion, reflecting a 27% increase year-over-year, attributed to higher advertising revenue despite increased costs [108]. - Net income for Q1 2025 was $16.64 billion, with diluted earnings per share (EPS) of $6.43 [114]. - Total revenue for the three months ended March 31, 2025, was $42.314 billion, a 16% increase from $36.455 billion in the same period in 2024 [157]. - Advertising revenue increased by $5.76 billion, or 16%, to $41.392 billion in the first quarter of 2025 compared to the same period in 2024 [162]. - Net income for the first quarter of 2025 was $16.644 billion, compared to $12.369 billion in the same period in 2024 [157]. User Engagement - Family daily active people (DAP) averaged 3.43 billion in March 2025, marking a 6% year-over-year increase [114]. - Worldwide Daily Active People (DAP) increased by 6% to 3.43 billion in March 2025 from 3.24 billion in March 2024 [133]. - Ad impressions delivered across the Family of Apps increased by 5% year-over-year, while the average price per ad rose by 10% [114]. - Average Revenue Per Person (ARPP) for the first quarter of 2025 was $12.36, a 10% increase from the first quarter of 2024 [139]. Expenses and Costs - Research and development expenses rose by $2.17 billion, or 22%, to $12.15 billion in the first quarter of 2025 compared to the same period in 2024 [168]. - Cost of revenue increased by $932 million, or 14%, to $7.572 billion in the first quarter of 2025 [166]. - General and administrative expenses decreased by $1.18 billion, or 34%, to $2.28 billion in Q1 2025 compared to Q1 2024, primarily due to lower legal-related costs [172]. Segment Performance - Family of Apps income from operations increased by $4.10 billion, or 23%, to $21.77 billion in Q1 2025 compared to Q1 2024, driven by higher advertising revenue [175]. - The Reality Labs segment incurred an operating loss of approximately $4.21 billion in Q1 2025, with expectations of increased losses for the full year [123]. - Reality Labs reported a loss from operations of $4.21 billion in Q1 2025, an increase of $364 million, or 9%, compared to Q1 2024, primarily due to increased costs and expenses [176]. - Reality Labs revenue decreased by $28 million, or 6%, to $412 million in the first quarter of 2025 compared to the same period in 2024 [164]. Capital and Cash Flow - Capital expenditures for Q1 2025 totaled $13.69 billion, with share repurchases amounting to $13.40 billion [114]. - Cash, cash equivalents, and marketable securities totaled $70.23 billion as of March 31, 2025, a decrease of $7.58 billion from December 31, 2024, mainly due to capital returns and capital expenditures [186]. - Net cash provided by operating activities increased to $24.03 billion in Q1 2025 from $19.25 billion in Q1 2024, attributed to higher revenue and cash collection [187]. - Capital expenditures are anticipated to be approximately $64 billion to $72 billion in 2025 to support core business and generative AI efforts [190]. - The company repurchased 19 million shares of Class A common stock for $13.40 billion during Q1 2025, with $37.95 billion remaining authorized for repurchases [195]. Tax and Debt - The effective tax rate for Q1 2025 was 9% [114]. - The effective tax rate decreased to 9% in Q1 2025 from 13% in Q1 2024, primarily due to excess tax benefits from share-based compensation [179]. - Long-term debt as of March 31, 2025, amounted to $29.0 billion, with future interest payment obligations of $1.38 billion short-term and $27.63 billion long-term [194]. - Total interest and other income, net, rose by $462 million, or 127%, to $827 million in Q1 2025 compared to Q1 2024, driven by higher interest income and foreign currency exchange gains [178]. Workforce - Headcount increased by 11% year-over-year, reaching 76,834 as of March 31, 2025 [114].
Meta Platforms(META) - 2025 Q1 - Quarterly Report