Close Menu
    Facebook LinkedIn YouTube Instagram X (Twitter)
    Blue Tech Wave Media
    Facebook LinkedIn YouTube Instagram X (Twitter)
    • Home
    • Leadership Alliance
    • Exclusives
    • Internet Governance
      • Regulation
      • Governance Bodies
      • Emerging Tech
    • IT Infrastructure
      • Networking
      • Cloud
      • Data Centres
    • Company Stories
      • Profiles
      • Startups
      • Tech Titans
      • Partner Content
    • Others
      • Fintech
        • Blockchain
        • Payments
        • Regulation
      • Tech Trends
        • AI
        • AR/VR
        • IoT
      • Video / Podcast
    Blue Tech Wave Media
    Home » Meta Q2 revenue surpasses expectations, boosted by AI ads
    Meta-Q2 revenue-08-01
    Meta-Q2 revenue-08-01
    AI

    Meta Q2 revenue surpasses expectations, boosted by AI ads

    By Vicky WuAugust 1, 2024No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email
    • Meta reported a Q2 revenue increase of 22% to $39.1 billion, surpassing analysts’ expectations of $38.3 billion.
    • The company attributed its success to AI enhancements in ad targeting and delivery, suggesting robust digital advertising on its platforms can cover the costs of its AI investments.

    OUR TAKE
    Meta’s robust Q2 results and optimistic forecast demonstrate the success of its AI investments, reassuring investors about its growth trajectory amidst rising costs. Strong global ad demand and effective AI integration into ad systems highlight Meta’s ability to sustain profitability and user engagement.
    –Vicky Wu, BTW reporter

    What happened

    Meta exceeded market expectations for second-quarter revenue and offered an optimistic sales forecast for the third quarter, indicating that robust digital-ad spending on its social media platforms can offset the costs of its AI investments. Shares of the company rose by 6.8% in after-hours trading following the announcement.

    Meta, the parent company of Facebook and Instagram, projected third-quarter revenue between $38.5 billion and $41 billion, with the midpoint exceeding analysts’ estimates of $39.1billion, according to LSEG data. For the April to June period, the company reported a revenue increase of 22% to $39.1 billion, surpassing analysts’ expectations of $38.3 billion.

    Meta CFO Susan Li stated on a call with analysts that the company continued to experience strong global advertising demand. She attributed this success to a multiyear project aimed at using artificial intelligence to improve targeting, ranking, and delivery systems for digital ads on its platforms. Both Li and Chief Executive Mark Zuckerberg noted that these AI tools would drive growth over the next two years, while newer generative AI features, such as chat assistants, would take longer to monetise.

    Also read: Meta launches AI studio for custom chatbots

    Also read: Meta’s SAM 2 revolutionises real-time video object segmentation

    Why it’s important

    Meta’s strong financial performance and optimistic forecast signal that the company’s investment in AI is paying off. The robust digital-ad spending on its social media platforms suggests that advertisers are finding value in Meta’s offerings, even as the company continues to invest in developing new AI capabilities. This is particularly significant given the challenges faced by other tech giants in realising returns from their AI investments.

    The positive results should reassure investors about Meta’s ability to sustain its growth trajectory despite increasing costs associated with AI and metaverse developments. Meta’s healthy margins and the rise in operating margin, from 29% to 38%, despite a 7% rise in costs for the second quarter, indicate that the company is effectively managing its investments.

    Additionally, the increase in family daily active people (DAP), a metric tracking unique daily users of any Meta app, by 7% year-over-year to an average of $3.27 billion for June, demonstrates Meta’s ongoing user engagement and relevance in the digital space.

    AI tools digital ads META
    Vicky Wu

    Vicky is an intern reporter at Blue Tech Wave specialising in AI and Blockchain. She graduated from Dalian University of Foreign Languages. Send tips to v.wu@btw.media.

    Related Posts

    T-Mobile drops DEI programmes as FCC scrutiny intensifies

    July 14, 2025

    Britain and France back Eutelsat with $1.65B to rival Starlink

    July 14, 2025

    Hong Kong boosts rural 5G with $25M rollout

    July 14, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    CATEGORIES
    Archives
    • July 2025
    • June 2025
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • August 2024
    • July 2024
    • June 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • October 2023
    • September 2023
    • August 2023
    • July 2023

    Blue Tech Wave (BTW.Media) is a future-facing tech media brand delivering sharp insights, trendspotting, and bold storytelling across digital, social, and video. We translate complexity into clarity—so you’re always ahead of the curve.

    BTW
    • About BTW
    • Contact Us
    • Join Our Team
    TERMS
    • Privacy Policy
    • Cookie Policy
    • Terms of Use
    Facebook X (Twitter) Instagram YouTube LinkedIn

    Type above and press Enter to search. Press Esc to cancel.