Meta Platforms(US:META) Changjiang Securities·2025-05-01 10:52Investment Rating - The investment rating for the industry is "Positive" and is maintained [6]. Core Insights - Meta reported Q1 FY25 revenue of $42.314 billion, a year-over-year increase of 16%, exceeding consensus expectations of $41.375 billion and the company's previous guidance of $39.5-41.8 billion for Q4 FY24. The net profit for Q1 FY25 was $16.644 billion, up 35% year-over-year, also surpassing the consensus estimate of $13.663 billion. The company's advertising business remains strong, with AI enhancing its competitive advantage [3][4]. - Meta continues to increase its investment in AI, raising its full-year FY25 CAPEX guidance to $64-72 billion, up from the previous guidance of $60-65 billion. This increase is primarily due to investments in data centers to support AI and rising expected costs for infrastructure hardware [3][4]. - The AI-driven growth in Meta's advertising business is validated, with Q1 FY25 advertising revenue reaching $41.39 billion, a 10% increase year-over-year, exceeding market expectations of 7%. The average revenue per user (ARPPU) increased by 10% year-over-year to $12.36 [3][4]. Summary by Sections Financial Performance - Q1 FY25 revenue was $42.314 billion, YoY +16%, exceeding expectations [3][4]. - Q1 FY25 net profit was $16.644 billion, YoY +35%, also above consensus [3][4]. Advertising Business - Advertising revenue for Q1 FY25 was $41.39 billion, with a YoY increase of 10% [3][4]. - The average revenue per user (ARPPU) was $12.36, reflecting a 10% YoY growth [3][4]. AI Investments - Full-year FY25 CAPEX guidance increased to $64-72 billion, indicating strong commitment to AI [3][4]. - Meta AI, driven by the Llama model, has nearly 1 billion users, with the launch of a standalone app [3][4].