Zuckerberg highlights AI breakthroughs and user growth; regulatory challenges in EU pose risks ahead.
Mumbai: Meta Platforms, Inc. has reported robust financial results for the first quarter of 2025, reflecting strong momentum in revenue growth and profitability. Founder and CEO Mark Zuckerberg expressed confidence in the company’s trajectory, emphasizing rapid advancements in artificial intelligence (AI) and a steadily expanding global user base.
“We’ve had a strong start to an important year; our community continues to grow, and our business is performing very well,” said Zuckerberg. “We’re making good progress on AI glasses and Meta AI, which now has almost 1 billion monthly actives,” he added.
For Q1 2025, Meta’s revenue surged 16% year-over-year to $42.31 billion, beating Wall Street estimates. Net income jumped 35% to $16.64 billion, driven by efficiency gains and high-margin returns in the company’s core advertising segment. Diluted earnings per share rose 37% to $6.43 compared to the same period last year.
The company’s performance was bolstered by a 6% increase in daily active users across its family of apps—Facebook, Instagram, Messenger, and WhatsApp—reaching 3.43 billion. Advertising remained the backbone of Meta’s business, generating $40.97 billion in revenue. Ad impressions rose 5%, while the average price per ad climbed 10%, indicating stronger engagement and improved monetization.
Operating expenses increased by 9% to $24.76 billion, outpaced by revenue growth—a sign of operational discipline. Capital expenditures rose sharply to $13.69 billion, reflecting heavy investments in AI capabilities and data centers. Free cash flow came in at $10.33 billion. Meta’s workforce expanded 11% year-over-year to 76,834, primarily in AI and regulatory compliance roles.
Despite the strong quarter, Meta is grappling with growing regulatory scrutiny. The European Commission recently ruled the company’s ad-free subscription model as non-compliant with the Digital Markets Act. This decision may compel Meta to overhaul how it presents data usage choices in the EU, potentially dampening advertising performance and user satisfaction.
In its risk disclosures, Meta flagged “legal and regulatory headwinds” in both the US and EU, signaling an expectation of heightened oversight that could affect its ad-based business model and platform operations.
Looking ahead, Meta projects Q2 revenues between $42.5 billion and $45.5 billion. The company has slightly lowered its full-year expense forecast to between $113 billion and $118 billion. At the same time, it has raised its capital expenditure outlook to $64 billion–$72 billion, up from its previous estimate of $60 billion–$65 billion, reinforcing its strategic focus on AI and infrastructure growth.