Meta’s third-quarter profit surges 35%, reflecting strong ad revenue and its AI push
LA TimesMark Zuckerberg wears a pair of Orion AR glasses during the Meta Connect conference on Sept. 25, 2024, in Menlo Park, Calif. Meta Platforms Inc. posted stronger-than-expected third-quarter results on Wednesday, fueled by its advertising revenue growth and its push to incorporate artificial intelligence. Meta said it’s “family daily active people” — the number of users who signed into at least one of its apps in a day — was 3.29 billion, on average, for September. “The miss in its user metric, daily active people, is concerning, as Meta will need to squeeze more revenue out of its existing users as growth slows,” said Emarketer analyst Jasmine Enberg. She added, though, that the company is in a good position to do so “as its AI-powered tools are boosting engagement by helping show users more of what they like and making its ads, particularly on Reels, more effective.” For the three months that ended Sept. 30, the Menlo Park, Calif.-based company earned $15.69 billion, or $6.03 per share, up 35% from $11.58 billion, or $4.39 per share, in the same period last year. Cohen added that although AI is “clearly driving growth” at Meta, “investors appear to be disappointed over the company’s forward guidance and rising costs needed to develop AI features.” Meta said it expects that 2024 operating losses at its Reality Labs division — which includes its virtual- and augmented-reality glasses — will “increase meaningfully” due to product development costs and other investments.