Thu, May 1, 10:12 AM (15 days ago)
### Meta Platforms, Inc. (META) Q1 2025 Financial Summary **Revenue and Profit Margins:** - **Total Revenue:** $42.31 billion, a 16% increase year-over-year (YoY). - **Advertising Revenue:** $41.39 billion, a 16% increase YoY. - **Other Revenue:** $510 million, a 34% increase YoY. - **Net Income:** $16.64 billion, a significant increase from $12.37 billion in Q1 2024. - **Earnings per Share (EPS):** $6.43 diluted, up from $4.71 in Q1 2024. **Cash Flow:** - **Net Cash Provided by Operating Activities:** $24.03 billion. - **Net Cash Used in Investing Activities:** $20.01 billion. - **Net Cash Used in Financing Activities:** $19.49 billion. **Quarterly Performance Discussion:** - **Family of Apps (FoA):** Revenue increased by 16% YoY, driven by advertising revenue. - **Reality Labs (RL):** Revenue decreased by 6% YoY, primarily due to a net decrease in Meta Quest sales. - **Ad Impressions and Pricing:** Ad impressions increased by 5% YoY, and the average price per ad increased by 10% YoY. **Trends and Uncertainties:** - **User Growth and Engagement:** Family daily active people (DAP) increased by 6% YoY to 3.43 billion. - **Advertising Trends:** Online commerce vertical was the largest contributor to advertising revenue growth. - **Future Operations Impact:** Continued investment in AI and Reality Labs, which may impact profitability in the short term. **Legal and Regulatory Uncertainties:** - **Privacy and Data Protection:** Ongoing regulatory scrutiny and potential fines related to data privacy and protection. - **Antitrust and Competition:** Legal challenges and potential divestitures related to antitrust concerns. - **Youth-Related Actions:** Litigation and regulatory actions related to the impact of social media on younger users. **Financial Health and Performance Metrics:** - **Operating Margin:** 41% for FoA, 41% overall. - **Capital Expenditures:** $13.69 billion for Q1 2025, with plans to invest $64 billion to $72 billion in 2025. - **Share Repurchases:** $13.40 billion in Q1 2025, with $37.95 billion remaining authorized for repurchases. **Conclusion:** Meta Platforms, Inc. (META) reported strong financial results for Q1 2025, with significant revenue growth and increased profitability. However, the company faces ongoing regulatory and legal uncertainties that could impact future operations and financial performance. Continued investment in AI and Reality Labs may also affect short-term profitability.