Zuckerberg also kicked off the call talking about the company’s AI work, calling this “the major theme” at Meta right now.

He listed 5 ways AI usage is playing out at Meta: “Improved advertising, more engaging experiences, business messaging, meta AI, and AI devices.”

While he noted these are “long-term investments that are downstream from us,” he added that he thinks further down the road the company “will be wildly happy with the investments that we are making.”

Both of these sentiments should sound familiar, as he’s given similar remarks when pressed on the company’s AI initiatives and spending in previous earnings calls.

In his opening remarks, CEO Mark Zuckerberg said Meta is “well-positioned to navigate the macroeconomic uncertainty” — but didn’t explicitly name President Trump or cite his tariffs.

CFO Susan Li prefaced the company’s guidance estimates by acknowledging the “dynamic macro environment” and noting the range “reflects the potential for a wider set of outcomes.”

“We continue to feel good about the fundamental drivers of revenue growth, and believe the past work we’ve done to streamline our operations and cost profile puts us in a strong position to navigate a variety of outcomes,” she said.

However, some listeners (including at BI!) noted glitches as Zuckerberg started to speak.

Investing.com senior analyst Thomas Monteiro says the company’s AI integration plan “not only keeps growing at an impressive rate but also does so without burning through piles of cash, unlike most of the competition.”

“Meta is quietly gaining ground as one of the greatest winners of the AI revolution — with still lots of tailwinds and room for expansion,” he said.

While tariff uncertainty means eyes are on Meta’s APAC ad revenue from retailers like Temu and Shein advertising to US consumers, the company is well-positioned to “free up margins from other parts of the operation without damaging its longer-term growth plans” if those figures skew lower, Monteiro adds.

As EMARKETER senior analyst Minda Smiley points out, Meta’s strong earnings and healthy ad business show its massive content moderation overhaul in January, which included ending its fact-checking program and switching to a community notes-based model, didn’t scare off advertisers.

The next test will be staying strong in the uncertain macroeconomic environment stemming from tariffs, though Meta’s sheer size and reach should help safeguard them.

“Advertisers will allocate more ad dollars to proven, sophisticated networks like Facebook and Instagram — all while pulling back spend on smaller social platforms — while they navigate uncertainty,” Smiley notes.

When big tech companies like Meta do mass layoffs — as the company has done over the last couple of years — it gets plenty of attention.

So you might be surprised to learn that in addition to firing thousands of people, Meta has also been hiring.

You can see that story buried in the company’s earnings reports. After the first quarter of 2023, Meta had 77,114 fulltime employees. Then the company pushed out huge swaths of its employees, and by the end of that year it was down to 67,317.

Meta continues to cut and trim throughout the company — it just rolled out cuts to its Reality Labs division, as we note below.

But at the same time, it has also been hiring! Meta now says it has 76,834 employees. That’s an 11% increase over the previous year, and it means Mark Zuckerberg’s workforce has almost exactly as many people as it did two years ago.

Meta’s Reality Labs division, which builds the Quest VR headsets, Ray-Ban smart glasses, and the Horizon Worlds platform, posted a $4.2 billion loss. That is a wider loss than last year but has narrowed from the previous quarter. Despite substantial losses, the division continues to be a focus for Meta’s long-term strategy, with nearly 500 roles still open to support its ambitions.

Meta’s Ray-Ban smart glasses have gained popularity, indicating a potential bright spot for the division. A new version with a built-in display is expected later this year.

The company has increased its capex forecast from $60-$65 billion to $64-$72 billion for 2025, citing additional investments in data centers and infrastructure hardware to support AI initiatives. Most of this spending will still be directed toward Meta’s core business, despite the increased focus on AI development.

Meta’s revenue reached $42.31 billion, up 16% year-over-year, surpassing analyst estimates. The company’s earnings per share also outperformed, with $6.43 against an expected $5.25. Operating income increased by 27%, and ad impressions rose by 5%, with the average ad price increasing by 10%.

Following the positive earnings report, Meta’s stock rose over 4% in after-hours trading, reflecting investor confidence in the company’s growth prospects and strategic direction.

CEO Mark Zuckerberg has been actively promoting Meta’s AI initiatives through interviews, livestreams, and podcasts leading up to the earnings release. He discussed the company’s AI work, including its new Meta AI app and investments in AI hardware and software, positioning AI as a major theme for Meta in 2025.

Meta hosted its first AI developer event, LlamaCon, where it unveiled a new API and announced a standalone Meta AI app aimed at challenging OpenAI’s ChatGPT. The event underscored Meta’s dedication to becoming a key player in the AI ecosystem, with industry leaders from Microsoft and Databricks in attendance.

Industry analysts see this as a move to reassure investors about Meta’s long-term AI investments amidst regulatory scrutiny and market pressures.

Meta’s new social media app, Threads, has quickly gained traction with 320 million monthly active users, adding about a million daily sign-ups. The company is now testing monetization strategies, including rolling out ads globally. While executives do not expect significant revenue from Threads in 2025, the platform has the potential to reach a billion users and become a leading discussion space, marking a long-term growth strategy.

Analysts are closely monitoring Meta’s substantial investments in generative AI and its Reality Labs division, which has incurred significant losses. CEO Mark Zuckerberg affirms his commitment to AI, with plans to expand investments, despite ongoing concerns about return on investment.

Meta’s recent AI developer conference, LlamaCon, and the launch of a new Meta AI app, are seen as pivotal moments in demonstrating the company’s AI progress to investors.

Wells Fargo analysts suggest that Meta’s dominant position in social media and advertising should help it withstand macroeconomic challenges. The bank highlights how Meta’s Reels platform may benefit from TikTok’s potential ban, leading to increased ad spend on Meta’s platforms.

While Zuckerberg maintains a strategic relationship with political figures, there is ongoing scrutiny and potential risks related to political blowback. Zuckerberg’s involvement with political figures and the company’s donations and partnerships are being watched closely as part of broader regulatory and political considerations.

JPMorgan analysts see AI as a significant growth opportunity for Meta, emphasizing its strong execution and potential to increase revenue through AI-driven advertising improvements, WhatsApp Ads, and new platforms like Threads. Despite macroeconomic worries, they remain bullish on Meta’s long-term prospects.

Analysts expect Meta’s revenue to be around $41.38 billion in the first quarter, with a strong performance in advertising and user engagement. The company has also increased its capital expenditures outlook to support its AI and infrastructure investments.

Experts highlight Meta’s robust advertising revenue, strategic AI investments, and long-term growth potential. Industry analysts from Goldman Sachs and JPMorgan point out that Meta is positioning itself as a leader in the AI space, with significant opportunities ahead despite existing macroeconomic challenges.

Meta’s recent earnings report showcased a healthy increase in revenue and profits, driven by strong ad performance and user engagement. The company’s strategic focus on AI and new social media initiatives like Threads suggest a promising long-term outlook, even as macroeconomic uncertainties persist.