Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) stock jumped more than 5% afterhours as its second quarter financial performance topped analyst estimates for the top and bottom lines.
Earnings per share (EPS) was up 73% from the year-ago quarter at $5.16, above estimates of $4.70.
Revenue grew 22% year-over-year to $39 billion, compared to the consensus $38.3 billion.
The Facebook and Instagram parent saw daily active users across its portfolio of 3.27 billion, up 7% from the second quarter of 2023.
Headcount as of June 30, 2024, was 70,799, down 1% from the same date last year.
"We had a strong quarter, and Meta AI is on track to be the most used AI assistant in the world by the end of the year," Meta CEO Mark Zuckerberg said in a statement accompanying the company’s results.
"We've released the first frontier-level open source AI model, we continue to see good traction with our Ray-Ban Meta AI glasses, and we're driving good growth across our apps."
For Q3, the company expects revenue in the range of $38.5 billion to $41 billion, or $39.75 billion at the midpoint, ahead of the $39.1 billion expected by the Street.
Meta also warned that its full-year capital expenses may be greater than previously expected.
It expects capex in the range of $37 billion to $40 billion, from its earlier guidance of $35 billion to $40 billion, as it continues to invest in AI research and product development.
Its full-year total expense forecast remained unchanged at $96 billion to $99 billion.
It continues to expect its operating loss for its Metaverse unit Reality Labs to increase year-over-year.
Shares of Meta traded up 5.3% at $500 post earnings.