- Q1 revenue $42.3bn vs $41.4bn expected
- Q1 EPS $6.43 vs $5.28 expected
- Daily active users up 6%
- Full year capex guide raised to $64-72bn
Matt Britzman, senior equity analyst, Hargreaves Lansdown:
“Meta shares are racing higher in after-hours trading after a strong set of results – and, more importantly, a confident outlook. This was never really about the quarter just gone for Meta; all eyes were on guidance for the second quarter and capex for the full year – and neither disappointed. The midpoint of the revenue guide is bang in line with consensus but Meta usually hits the top end, and the big surprise was another bump to capex as Meta goes full throttle on investments in AI.
There was a distinct lack of commentary on tariffs, so we’ll have to wait for the call to hear more. Meta is more insulated than other names in the ad space, like Snapchat, which tumbled after ditching guidance. But with about 10% of ads tied to Chinese sellers, Meta’s still got some serious skin in the game. Full-year expectations may need to be revised slightly from the 10% revenue growth currently priced in, but Meta has some levers to pull in other areas if it needs to limit the impact on profits.
The number that may go under the radar was the 6% jump in daily active users. There had been some concerns that we might see a slowdown in new users this year, but this was a very strong start – and a signal to investors that Meta’s family of apps has a grip on users that’s hard to displace.
