Meta reports a 73% surge in second-quarter profits, driven primarily by its core advertising business. 

The company’s Q2 2024 financial results reveal that despite heavy investments in metaverse technologies, Meta’s traditional social media platforms remain the primary revenue generator.

The tech giant posts $39.1 billion in Q2 revenue, surpassing analyst expectations of $38.3 billion. 

Net income reaches $13.5 billion, translating to earnings per share of $5.16, significantly exceeding the forecasted $4.72 per share.

Meta’s Reality Labs division, responsible for its metaverse initiatives, recorded a $4.5 billion quarterly loss, its largest since its inception in 2021. 

However, this substantial loss is offset by the company’s advertising business, which accounts for 99% of total sales across its social media apps: Facebook, Instagram, and WhatsApp.

The company projects third-quarter revenue between $38.5 billion and $41 billion, with the midpoint of $39.8 billion surpassing the consensus forecast of $39.1 billion. 

Full-year expenses are expected to range from $96 to $99 billion, aligning with previous guidance.

According to Forbes, Meta’s stock responded positively to the earnings report, rising more than 5% in after-hours trading despite a 10% decline over the past three weeks amid a broader tech sector downturn.

CEO Mark Zuckerberg’s declaration of 2023 as the “year of efficiency” appears to have paid off. 

The company has implemented cost-cutting measures, including laying off 20,000 employees, resulting in 40% or higher year-over-year profit growth in five consecutive quarters.

Meta announced its first-ever quarterly dividend of $0.50 per share as a sign of its maturing business model.

Since the beginning of 2022, Meta’s stock has rebounded in early 2024, rising nearly 300% despite recent market volatility.