Meta Platforms Inc (META) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Challenges

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

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Q & A Highlights

Q : Can you discuss the advancements in LLMs, particularly with Llama and Behemoth, and how they impact Meta AI's development? A : Mark Zuckerberg, CEO, explained that Meta is focused on developing LLMs like Llama 4 to optimize for their infrastructure and use cases. The models are designed for low latency and personalized experiences, crucial for voice interactions. Meta is also working on distilling large models like Behemoth to create efficient, lower-latency models for production use.

Q : How is Meta AI being used across different platforms, and what are the main use cases? A : Susan Li, CFO, highlighted that Meta AI is primarily used for information gathering and social interactions. WhatsApp sees the highest engagement, followed by Facebook. The AI is integrated into various apps, allowing users to ask questions about recommended content and engage in personalized interactions.

Q : What is the rationale behind launching a stand-alone Meta AI app, and how does it fit into the competitive landscape? A : Mark Zuckerberg, CEO, stated that the stand-alone app provides faster access and a more comprehensive feature set than integrated apps like WhatsApp. It's particularly important in the US, where WhatsApp is not the primary messaging app. The stand-alone app aims to establish Meta AI as the leading personal AI in the US.

Q : How is Meta addressing potential supply issues in e-commerce, and what is the outlook for CapEx investments? A : Susan Li, CFO, noted that Meta's Q2 revenue outlook considers potential macroeconomic uncertainties, including reduced spend from Asia-based e-commerce exporters. The increased CapEx outlook reflects investments in data centers and infrastructure to support AI initiatives, with flexibility to adapt to market developments.

Q : What are the competitive advantages of Meta AI in a market with multiple chatbots, and how will the EU's DMA decision impact Meta's operations? A : Mark Zuckerberg, CEO, emphasized personalization and multimodal capabilities as key differentiators for Meta AI. Susan Li, CFO, mentioned that it's too early to determine the exact impact of the EU's DMA decision, but noted that the affected region accounted for 16% of Meta's 2024 revenue.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .