Meta CEO Mark Zuckerberg revealed during the company's Q1 2024 earnings call that its social network Threads has reached a milestone of over 150 million monthly active users, up from 130 million in February.
Threads User Base Increases
The update on Threads' user base came as part of Meta's quarterly earnings report for the first quarter of 2024, in which Mark Zuckerberg expressed satisfaction with the app's growth trajectory, stating that it is progressing as expected.
Threads, Meta's Twitter rival, has grown steadily over the past few months, adding approximately 20 million new users since February.
While the initial download surge during its launch phase tapered off, Threads has since maintained a more consistent growth rate, suggesting a stable and gradually expanding user base.
Zuckerberg hinted at the possibility of Threads becoming Meta's next billion-user app, indicating optimism about its long-term potential despite its initial challenges in sustaining engagement levels.
Meta's Q1 2024 Financial Performance
Meta's broader financial performance in Q1 2024 also demonstrated positive trends, with notable highlights including a 7% year-over-year increase in family daily active people (DAP) across Meta's apps, reaching 3.24 billion on average for March 2024.
Ad impressions delivered across Meta's Family of Apps increased by 20% year-over-year, contributing to revenue growth, which amounted to $36.46 billion for the quarter.
On a constant currency basis, revenue also saw a significant uptick, reaching $36.35 billion, reflecting a 27% year-over-year increase.
While total costs and expenses rose by 6% year-over-year to $22.64 billion, Meta's capital return program remained active, with share repurchases totaling $14.64 billion and dividend payments amounting to $1.27 billion.
In terms of cash position, Meta reported $58.12 billion in cash, cash equivalents, and marketable securities as of March 31, 2024, with free cash flow amounting to $12.53 billion.
Looking ahead, Meta guided for the second quarter of 2024, projecting total revenue in the $36.5-39 billion range. The company also revised its outlook for 2024 total expenses to be $96-99 billion, citing higher infrastructure and legal costs.
For Reality Labs, Meta expects operating losses to increase significantly year-over-year due to ongoing product development efforts and investments to scale its ecosystem.
The company anticipates capital expenditures for the entire year to be $35-40 billion, reflecting an increase from previous estimates as Meta accelerates infrastructure investments to support its AI roadmap.
While Meta expressed confidence in its strong momentum within its Family of Apps and ongoing AI and Reality Labs initiatives, it acknowledged the regulatory challenges posed by the evolving legal and regulatory landscape in the EU and the U.S., which could potentially impact its business and financial results.
"It's been a good start to the year," Zuckerberg said.
"The new version of Meta AI with Llama 3 is another step towards building the world's leading AI. We're seeing healthy growth across our apps and we continue making steady progress building the metaverse as well."
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