Meta reports revenue jump as Zuckerberg sees stock volatility over AI product releases
Meta, previously known as Facebook, announced a significant increase in quarterly revenue, reaching $36.46 billion, reflecting a 27% rise compared to the previous year. CEO Mark Zuckerberg attributed this success to the company's AI product releases and emphasized the goal of expanding their reach to more customers while also aiming to monetize these offerings.
Revenue Growth and Expenses
During the first quarter, total costs and expenses amounted to $22.64 billion, representing a 6% increase year-over-year. Zuckerberg highlighted the positive reception of the new Meta AI chatbot, utilizing the advanced Llama 3 model, which has already been tested by millions of users. Plans are underway to introduce the chatbot to additional regions in the near future.
Stock Volatility and Future Investments
Despite the revenue surge, Zuckerberg cautioned about potential fluctuations in the company's stock prices, indicating that profitability might take some time to materialize. He acknowledged the historical stock volatility during phases of product development and scaling, citing examples such as Reels and Stories. Zuckerberg foresees a multi-year investment cycle before achieving full scalability with Meta AI and other business AIs.
Operational Updates and Future Outlook
Meta also shared updates on its wearables, including Ray-Ban smart glasses and Quest headsets, which have been well-received in the market. However, Reality Labs reported an operating loss of $3.8 billion alongside a revenue of $440 million in the first quarter.
The company's headcount stood at 69,329 as of March 31, with a 10% decrease compared to the previous year. Zuckerberg emphasized the careful management of Meta's headcount in the future to ensure strategic alignment with the company's goals.
As Meta continues to navigate the evolving landscape of technology and AI, Zuckerberg remains optimistic about the company's trajectory, with a keen focus on innovation, scalability, and long-term sustainability.
