New Delhi: Facebook India Online Services, Meta’s advertising unit, has reported a significant 43% surge in profit to Rs 505 crore for the fiscal year ending March 31, 2024. This growth is fueled by the company’s increasing ad revenue and operational efficiency.
The company’s turnover also witnessed a healthy 9.33% increase, reaching Rs 3,034.82 crore in FY24 compared to Rs 2,775.78 crore in the previous year.
Global Trends Driving Growth
Globally, Meta’s Q3 2024 financial results were equally impressive, with total revenue climbing to $40.6 billion, a 19% year-over-year increase. The primary driver behind this growth is the advertising sector, which contributed $39.9 billion to the total revenue. This surge can be attributed to both a rise in ad impressions and an increase in the average price per ad.
Strong Financial Performance and Future Outlook
Meta’s strong financial performance is reflected in its earnings per share (EPS), which came in at $6.03, exceeding Wall Street’s expectations. This indicates efficient cost management and operational improvements. Additionally, the company’s operating margins improved to 43% from 40% in the previous year.
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Meta’s user engagement metrics also continue to grow, with daily active people across its family of apps reaching 3.29 billion, a 5% increase year-over-year. This expanding user base provides a larger platform for advertisers, further boosting ad revenue.
While Meta is optimistic about its future, the company is also investing heavily in infrastructure, particularly in AI and metaverse technologies. This increased spending may put pressure on future margins, especially considering the continued losses from its Reality Labs division.
Despite these challenges, Meta’s Q4 2024 revenue guidance of $45 billion to $48 billion aligns with analyst expectations, indicating a positive outlook for the company.