Meta posted a strong quarterly financial report, exceeding expectations and boosting its stock price. CEO Mark Zuckerberg highlighted the impressive progress of the Chinese AI startup DeepSeek and expressed optimism for 2025, noting that the new U.S. administration may improve relations with the tech industry. He emphasized that a government supportive of American technology could drive further innovation and expansion.
The company’s earnings per share reached $8.02, well above analysts’ forecasts of $6.77. Revenue for the quarter was $48.39 billion, surpassing the expected $47.04 billion, marking a 21% year-on-year increase. Net profit surged 49% to $20.8 billion from $14 billion a year earlier. Despite these strong results, Meta’s projected revenue for Q1 2025, estimated at $39.5 to $41.8 billion, was slightly below analysts’ forecasts of $41.73 billion.
Zuckerberg stated that Meta expects a shift in regulatory relations in 2025, which could positively impact its operations. “We now have a U.S. administration that takes pride in our leading companies, prioritizes the success of American technology, and will defend our values and interests internationally. I am optimistic about the progress and innovation this can unlock,” he said.
AI Investments and Expanding User Base
Meta’s AI initiatives continue to gain momentum. The number of monthly active users of the Meta AI chatbot has exceeded 700 million, up from 600 million in December. Zuckerberg believes this figure will surpass 1 billion within the year. He also reaffirmed Meta’s commitment to open-source AI, setting it apart from competitors like OpenAI and Google. The company continues to release its Llama models openly, reinforcing its dedication to transparency and accessibility in AI development.
Meta has already completed training a mini-version of Llama 4 and has made “great progress” in developing its larger counterpart. Additionally, the company confirmed its previously announced plan to invest between $60 billion and $65 billion in AI infrastructure in 2025. Zuckerberg views these investments as a long-term strategic advantage, positioning Meta as a leader in AI-driven innovation.
The company is also expanding its workforce in key areas, including AI, infrastructure, monetization, and regulatory compliance. By the end of December, Meta’s total employee count had surpassed 74,000, reflecting a 10% increase compared to the previous year. This hiring expansion highlights Meta’s commitment to scaling its AI and digital ecosystem.
Financial Performance and Future Outlook
Meta’s platforms continue to see strong user engagement. The number of daily active users across Meta’s services reached 3.35 billion in Q4, up from 3.29 billion in the previous quarter. Wall Street analysts had predicted 3.32 billion, meaning Meta outperformed expectations.
The company’s expenses grew 5% year-on-year to $25.02 billion in the last quarter. Reality Labs, Meta’s division dedicated to virtual and augmented reality, reported an operating loss of $5 billion on $1.1 billion in revenue. Despite these losses, Meta remains committed to developing next-generation immersive technologies, seeing them as an integral part of its long-term vision.
Looking ahead, Meta expects total expenses for 2025 to range between $114 billion and $119 billion, adds NIXSolutions. A significant portion of these costs will go toward infrastructure, ensuring that the company can continue expanding its AI capabilities and improving its platforms. Additionally, Meta plans to strengthen its monetization strategies and regulatory compliance efforts, further securing its position in an evolving digital landscape.
With its strong financial performance, growing AI investments, and an expanding user base, Meta is well-positioned for continued success. We’ll keep you updated on Meta’s progress as the company navigates its next phase of innovation and development.