Meta Platforms Inc (NASDAQ:META) reported better-than-expected third-quarter earnings and revenue on Thursday, driven by strong growth in ad impressions and pricing. Jefferies analyst Brian Thill said the company delivered a revenue beat despite "high expectations."
The company's shares slipped 2.2% in after-hours trading as investors digested results and guidance against rich AI-driven expectations.
The social media giant posted adjusted earnings per share of $6.03, surpassing analyst estimates of $5.21. Revenue for the quarter came in at $40.59 billion, up 19% YoY and above the consensus estimate of $40.18 billion.
Ad impressions across Meta's family of apps increased by 7% YoY, while the average price per ad rose 11%.
"We had a good quarter driven by AI progress across our apps and business," said Mark Zuckerberg, Meta founder and CEO. "We also have strong momentum with Meta AI, Llama adoption, and AI-powered glasses."
For the fourth quarter, Meta expects revenue to be in the range of $45-48 billion, compared to the analyst consensus of $46.09 billion. The midpoint of this guidance range is slightly above current estimates, suggesting continued growth momentum.
The company's family daily active people (DAP) metric reached 3.29 billion on average for September 2024, representing a 5% increase YoY. Meta also reported strong free cash flow of $15.52 billion for the quarter.