Meta announces revenue growth and develops new AI technologies | Meta AI image generator | Meta Business | WhatsApp Messenger | Turtles AI

Highlights:

• Meta revenue grows by 19%: reaching $40.6 billion in Q3 2024 thanks to advancements in AI and advertising.
• Reality Labs increases revenue but also losses: VR, AR, and MR sector generated $270 million but with $4.4 billion in losses.
• Quest 3S launch and Ray-Ban Smart Glasses demand: a new more affordable version of the headset and strong interest in AI-enabled Ray-Ban.
• Llama 4 in development, slated for 2025: the new AI model will offer advanced reasoning abilities and improved modalities.

Meta has released its financial results for the third quarter of 2024, highlighting a substantial revenue increase to $40.6 billion, marking a 19% growth compared to the same period last year. A significant portion of this growth was attributed to AI developments and implementation across its applications and connected services, positively impacting the company’s ecosystem, from advertising campaigns to AI assistant integration.

Meta CEO Mark Zuckerberg emphasized the tangible benefits AI advancements are providing. With over 500 million active users accessing Meta AI through platforms such as Facebook, Instagram, and WhatsApp, the company uses the Llama model, integrated into the Ray-Ban Meta Smart Glasses, to enable multimodal features like real-time translation and visual queries. The Ray-Ban Meta series exemplifies how AI can enhance human-machine interaction, fostering a smoother user experience.

Additionally, Zuckerberg hinted at the launch of the Llama 4 model for 2025, stating that the system will offer improved modalities and stronger reasoning capabilities, with greater speed and versatility than previous versions. Meta expects Llama 4 to add new possibilities for users and businesses, further strengthening Meta’s position in AI.

While ad revenue continues to constitute the majority of revenue, another growth area for Meta is Reality Labs, the division responsible for virtual, augmented, and mixed reality initiatives, including the Quest headset series. Though this sector showed revenue growth, reaching $270 million in the third quarter, it also recorded significant losses, which rose to $4.4 billion from $3.7 billion in the same quarter of 2023. Despite the deficit, the Quest 3 has seen growing market interest, with Zuckerberg highlighting strong demand for the recently launched Ray-Ban Meta Smart Glasses.

Meta also recently introduced the Quest 3S, a more affordable headset that, although launched after the quarter ended, has already attracted user interest for the holiday season. This new device is expected to further boost Q4 revenue.

Meta’s performance underscores an increasing focus on AI as a strategic development factor, aiming to offer advanced and customizable tools for users and businesses. However, the Reality Labs segment remains challenging, with substantial investments and high losses, though growth margins, particularly in accessible devices like the Quest 3S, may offset these costs in the long run. Meta thus seems set to continue balancing AI and hardware, consolidating its role in both markets.