Meta reports 21% YoY revenue growth in Q4, ad revenue reaches $46.8 Billion

Meta reported $46.8 billion in ad revenue for the fourth quarter of 2024, contributing to total revenue of $48.39 billion, marking a 21% year-over-year increase. 

For the full year, total revenue stood at $164.50 billion, up 22% from the previous year. 

Advertising remained Meta’s primary revenue driver, with ad impressions across its Family of Apps increasing by 6% year-over-year in Q4 and 11% for the full year. 

The average price per ad rose by 14% for the quarter and 10% for the year. 

Meta stated that its decision to discontinue its fact-checking program has not impacted advertiser spending. During the company’s Q4 2024 earnings call, CFO Susan Li assured investors that advertiser demand remains strong and reiterated Meta’s commitment to brand safety, despite the policy change.

CEO Mark Zuckerberg defended the move, calling the newly introduced Community Notes feature a “better” system and acknowledging that X. Li originally implemented the concept added that Meta has not observed any significant effect on advertiser spending due to its content policy changes, though she did not provide specific data. She also highlighted Meta’s AI-powered tools as key drivers in helping businesses optimize their ad spend.

Total costs and expenses for Q4 were $25.02 billion, up 5% year-over-year, while full-year costs and expenses rose 8% to $95.12 billion. The company noted a favorable impact of $1.55 billion in Q4 due to a reduction in accrued losses for certain legal proceedings. 

Capital expenditures, including principal payments on finance leases, totaled $14.84 billion for the quarter and $39.23 billion for the full year.

Meta continues to expand its AI-driven advertising tools, including its machine learning system Andromeda, which enhances ad retrieval efficiency. 

More than 4 million advertisers now use at least one of Meta’s generative AI ad creative tools, up from 1 million six months ago. Advantage+ Shopping Campaigns, the company’s automated ad solution, surpassed a $20 billion annual run rate in Q4, reflecting 70% year-over-year growth.

Looking ahead, Meta CEO Mark Zuckerberg emphasised continued investments in AI and the metaverse, predicting that Threads will evolve into a major discussion platform with a billion users over the next several years. He also highlighted 2025 as a “pivotal year” for the metaverse, with increased adoption of Quest and Horizon Worlds.