SAN FRANCISCO (AFP) – Social media giant Meta reported surging profits and revenue for 2024, announcing ambitious plans to expand its artificial intelligence (AI) infrastructure in the year ahead.
The bullish projection about the company’s AI future sent shares in the company spiking by as much as five per cent in after hours trading, though this later steadied to two per cent.
Chief Executive Officer Mark Zuckerberg said he believed that Meta’s AI powers would make it a world leader on the technology, even if he warned that delivering on the hefty investments needed would “take time”.
The parent company of Facebook, Instagram, and WhatsApp saw its net income soar 59 per cent to USD62.36 billion for the full year, while fourth-quarter profits jumped 49 per cent to USD20.84 billion.
Revenue reached USD164.5 billion, up 22 per cent from 2023, boosted by stronger advertising performance as ad prices rose 10 per cent and impressions increased 11 per cent across its platforms.
The solid performance comes amid significant shifts in Meta’s content policies intended to endear the company to United States (US) President Donald Trump.
The company recently announced the end of its US fact-checking programme aimed at combating misinformation, a move that followed criticism from conservative voices who viewed such efforts as censorship.
Zuckerberg said that 2025 was going to be a “big year for redefining our relationship with governments”.
“We now have a US administration that is proud of our leading companies, prioritizes American technology winning, and that will defend our values and interests abroad,” Zuckerberg told analysts.
Meta has also scaled back diversity initiatives and relaxed content moderation rules on its platforms, particularly regarding certain forms of speech – changes that could potentially concern major advertisers who are wary of having their ads appear alongside divisive content.
On the analyst call, Meta’s chief financial officer said the changes had not had an impact on ad revenue.
The company’s user base continued to grow, reaching 3.35 billion daily active users across its platforms in December 2024, a five-per-cent increase year-over-year.
Looking ahead, Meta plans massive infrastructure investments, with expected capital expenditures of USD60-65 billion for 2025, primarily supporting AI initiatives. Total expenses are projected to reach USD114-119 billion.
“In AI, I expect this is going to be the year when a highly intelligent and personalised AI assistant reaches more than one billion people, and I expect Meta AI to be that leading assistant,” Zuckerberg said. But he warned the investments would “be expensive for us to serve all of these people, because we are serving a lot of people”.
Meta’s Reality Labs unit, which encompasses its virtual reality endeavours, posted a lower-than-expected operating loss of USD4.97 billion while generating USD1.1 billion in sales during the fourth quarter.
The company expanded its workforce by 10 per cent to 74,067 employees in 2024, with plans for further growth in technical roles focused on AI development and infrastructure. Meta last month said it will dismiss 3,600 employees (five per cent of its workforce) identified as low performers, with the intention to bring in new talent to strengthen the company.
While Meta’s stock has performed strongly, the company faces both regulatory challenges and emerging competition.
The rise of Chinese startup DeepSeek’s more economical AI model has reportedly prompted Meta to establish war rooms to study and potentially adapt the innovations for its own Llama AI models.
The company projects first-quarter 2025 revenue between USD39.5-41.8 billion, representing growth of eight to 15 per cent year-over-year.
