Meta, the parent company of Facebook and Instagram, shared a better-than-expected earnings report for the second quarter but warned about significant spending in 2025 as it looks to expand its infrastructure footprint.
Meta’s $5.16 in earnings per share comfortably cleared the $4.73 per share expected by analysts, while its revenue of $39.07 billion also came above the estimates of $38.31 billion. Its second-quarter revenue was 22% up from the same period last year, extending its streak to four quarters in which the company had 20% growth or more.
On the back of a successful Q2, Meta also shared guidance for third-quarter, saying it now forecasts revenue of $38.5 billion to $41 billion, while the analysts expected a projection of $39.1 billion.
The company said that it won’t issue “any quantitative guidance” for the next year but expects to spend heavily on product development and artificial intelligence research.
“While we do not intend to provide any quantitative guidance for 2025 until the fourth quarter call, we expect infrastructure costs will be a significant driver of expense growth next year as we recognize depreciation and operating costs associated with our expanded infrastructure footprint,” CFO Susan Li said in a statement.
Meta’s stock saw a significant jump of almost 7% after the company shared its Q2 earnings, trading at $508.00 per share. Its shares were previously 12% down from their year-highs in early July.