top of page

Meta Platforms, Inc.


Wall street consensus:


​Recent Conference Call

### Summary of Meta Platforms, Inc. FQ3 2023 Earnings Call

**Insightful Quote from CFO, Susan J. S. Li:**
"We anticipate that our full year 2024 total expenses will be in the range of $94 billion to $99 billion... our biggest investment area in 2024, both in engineering and compute resources."

**Key Quarterly Business Trends:**
1. **Expansion of AI Initiatives**: Meta's continuous exploration and innovation in AI technology have been central, with the company starting the rollout of Meta AI - an assistant accessible across messaging experiences and smart glasses. This move signifies Meta's commitment to embedding AI across their product suite, pointing towards a transformative future in how users interact with its services.

2. **Growth and Monetization of Reels**: Reels has now evolved from an early project to a core aspect of Instagram and Facebook, showing over a 40% increase in time spent on Instagram since its launch. This growth, coupled with reaching a monetization milestone where Reels is now net neutral to overall company ad revenue, highlights the product's successful integration and economic viability within Meta's ecosystem.

3. **Investments in Virtual and Augmented Reality**: With the launch of Quest 3 and the next generation of Ray-Ban Meta smart glasses, Meta continues to push forward in the VR and AR space. These products not only demonstrate Meta's technological advancements but also its belief in the metaverse as a key part of the future digital experience.

**Critical Analyst Questions:**

1. **AI Impact and Strategy**: Analysts inquired about the strategic opportunity Meta sees in its open-source AI model adoption, given its potential impacts on the company's product offerings and industry standards. Susan J. S. Li elaborated on the multiple facets of Meta's AI initiatives aimed at enhancing user engagement, improving content generation, and streamlining ad deliveries, emphasizing the transformative potential of these technologies.

2. **2024 Revenue Growth Concerns**: Questions around the sustainability of revenue growth, especially considering the role of Chinese advertisers and political advertising in the U.S., were raised. Susan Li addressed these by discussing the diversified growth across regions and verticals, acknowledging the influence of macroeconomic factors but steering the conversation towards the company's broader strategic initiatives and performance improvements.

3. **Reality Labs Operating Expenses**: There was curiosity about how expenditures within Reality Labs, especially those contributing to AR/VR developments, might benefit the broader Meta ecosystem, including the Family of Apps. Susan Li detailed how advances in avatars and immersive hardware can enrich user experiences across Meta's platform, reinforcing the integrated long-term vision Meta holds for Reality Labs within its larger ecosystem.

**Outlook and Guidance:**
Meta projects a cautious but strategically ambitious outlook for 2024, with expenses ranging between $94 billion to $99 billion driven primarily by investments in AI, infrastructure, and Reality Labs. The emphasis on AI as the biggest investment area underscores Meta's vision of embedding

Key Questions to follow

bottom of page