Meta generates revenue through advertising on its platforms: Facebook, Instagram, Messengers, and more recently Threads. WhatsApp has historically been less monetised to protect user experience and focus on growth.
The company has also expanded into virtual and augmented reality as part of its ‘metaverse’ vision. Additionally, it seeks to utilize AI to enhance user engagement, improve advertising effectiveness, and generate new revenue streams. Essentially, Meta is using AI to make its platforms more captivating and addictive for users.
Financial indicatorQ2 2023 (US$ million)Q2 2024 (US$ million)Percentage changeRevenue31,99939,071+22.1%Family of Apps31,72338,718+22.1%Reality Labs276353+27.9%Operating income9,39214,847+58.1%Net income7,78813,465+72.9%Source: Meta
Revenue increased 22.1% year-on-year to US$39.1 billion in Q2 2024 because of strong ad revenue growth across different markets and industries, especially from smaller advertisers. Assuming a similar growth trend and a 2% headwind from foreign currency, revenue in the coming quarter is expected to range between US$38.5 billion and US$41.0 billion.
In Q2 2024, Meta derived almost all its revenue from advertising. The online commerce sector was the primary driver of ad revenue growth, followed by the gaming and entertainment and media industries during the quarter. The overall revenue is expected to continue its positive trajectory in 2025 because of the core AI investments Meta made over the years.
Meta is leveraging AI to enhance its advertising platform and drive revenue growth. By optimising ad placement, personalising ads, and improving content recommendations, the company has achieved significant gains in ad performance and efficiency. Tools like Advantage+ Shopping and Meta Lattice are key components of this strategy.
The launch of Meta AI in several countries in Q2 2024, powered by the Large Language Model Llama, underscores the company’s dedication to AI innovation. This platform has gained popularity by allowing users to create custom AI assistants, further expanding Meta’s AI ecosystem. Meta AI is set to roll out
