Meta Platforms Inc

Previous wording

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we present revenue on a constant currency basis, which is a non-GAAP financial measure. Revenue on a constant currency basis is presented in the section entitled "—Revenue—Foreign Exchange Impact on Revenue." To calculate revenue on a constant currency basis, we translated revenue for the three months ended March 31, 2024 using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar.

Current wording

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we present revenue on a constant currency basis, which is a non-GAAP financial measure. Revenue on a constant currency basis is presented in the section entitled "—Revenue—Foreign Exchange Impact on Revenue." To calculate revenue on a constant currency basis, we translated revenue for the three and six months ended June 30, 2024 using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar.

Previous wording

Our financial results and key Family metrics for the first quarter of 2024 are set forth below. Total revenue for the first quarter of 2024 was $36.46 billion, an increase of 27% compared to the first quarter of 2023, due to an increase in advertising revenue. Ad impressions delivered across our Family of Apps in the first quarter of 2024 increased 20% year-over-year, and our average price per ad in the first quarter of 2024 increased 6% year-over-year.

Current wording

Our financial results and key Family metrics for the second quarter of 2024 are set forth below. Total revenue for the second quarter of 2024 was $39.07 billion, an increase of 22% compared to the second quarter of 2023, due to an increase in advertising revenue. Revenue on a constant currency basis would have increased 23% compared to the second quarter of 2023. Ad impressions delivered across our Family of Apps in the second quarter of 2024 increased 10% year-over-year, and our average price per ad in the second quarter of 2024 increased 10% year-over-year.

Previous wording

•Net income was $12.37 billion, with diluted earnings per share (EPS) of $4.71 for the three months ended March 31, 2024.

Current wording

•Net income was $13.47 billion, with diluted earnings per share (EPS) of $5.16 for the three months ended June 30, 2024.

Previous wording

•Capital expenditures, including principal payments on finance leases, were $6.72 billion for the three months ended March 31, 2024.

Current wording

•Capital expenditures, including principal payments on finance leases, were $8.47 billion for the three months ended June 30, 2024.

Previous wording

•Share repurchases were $14.64 billion of our Class A common stock and dividends payments were $1.27 billion for the three months ended March 31, 2024.

Current wording

•Share repurchases were $6.32 billion of our Class A common stock and dividend payments were $1.27 billion for the three months ended June 30, 2024.

Previous wording

•Cash, cash equivalents, and marketable securities were $58.12 billion as of March 31, 2024.

Current wording

•Cash, cash equivalents, and marketable securities were $58.08 billion as of June 30, 2024.

Previous wording

•Headcount was 69,329 as of March 31, 2024, a decrease of 10% year-over-year.

Current wording

•Headcount was 70,799 as of June 30, 2024, a decrease of 1% year-over-year.

Previous wording

•Family daily active people (DAP) was 3.24 billion on average for March 2024, an increase of 7% year-over-year.

Current wording

•Family daily active people (DAP) was 3.27 billion on average for June 2024, an increase of 7% year-over-year.

Previous wording

•Ad impressions delivered across our Family of Apps in the first quarter of 2024 increased by 20% year-over-year.

Current wording

•Ad impressions delivered across our Family of Apps in the second quarter of 2024 increased by 10% year-over-year.

Previous wording

•Average price per ad in the first quarter of 2024 increased by 6% year-over-year.

Current wording

•Average price per ad in the second quarter of 2024 increased by 10% year-over-year.

Previous wording

Other global and regional business, macroeconomic, and geopolitical conditions also have had, and we believe will continue to have, an impact on our user growth and engagement and advertising revenue. In particular, we believe advertising budgets have been pressured from time to time by factors such as inflation, rising interest rates, and related market uncertainty, which has led to reduced marketer spending. While we saw improvement in business and macroeconomic conditions in recent periods, continued business, macroeconomic, and geopolitical uncertainty remains, which could impact our financial results in future periods. In addition, competitive products and services have reduced some users' engagement with our products and services. We are investing in Reels and in AI initiatives across our products, including our AI-powered discovery engine to recommend relevant content, which we have already seen results in improved user engagement and monetization of our products. While Reels is growing in usage, it monetizes at a lower rate than our Feed and Stories products and we expect it will continue to monetize at a lower rate for the foreseeable future. We also have seen fluctuations and declines in the size of our active user base in one or more regions from time to time. For example, in connection with the war in Ukraine, access to Facebook and Instagram was restricted in Russia and the services were then prohibited by the Russian government, which continued to adversely affect user growth and engagement in the first quarter of 2024. These trends adversely affected advertising revenue in the first quarter of 2024, and we expect will continue to affect our advertising revenue in the foreseeable future.

Current wording

Other global and regional business, macroeconomic, and geopolitical conditions also have had, and we believe will continue to have, an impact on our user growth and engagement and advertising revenue. In particular, we believe advertising budgets have been pressured from time to time by factors such as inflation, rising interest rates, and related market uncertainty, which has led to reduced marketer spending. While we saw improvement in business and macroeconomic conditions in recent periods, continued business, macroeconomic, and geopolitical uncertainty remains, which could impact our financial results in future periods. In addition, competitive products and services have reduced some users' engagement with our products and services. We are investing in Reels and in AI initiatives across our products, including our AI-powered discovery engine to recommend relevant content, which we have already seen results in improved user engagement and monetization of our products. While Reels is growing in usage, it monetizes at a lower rate than our Feed and Stories products and we expect it will continue to monetize at a lower rate for the foreseeable future. We also have seen fluctuations and declines in the size of our active user base in one or more regions from time to time. For example, in connection with the war in Ukraine, access to Facebook and Instagram was restricted in Russia and the services were then prohibited by the Russian government, which continued to adversely affect user growth and engagement in the second quarter of 2024. These trends adversely affected advertising revenue in the second quarter of 2024, and we expect will continue to affect our advertising revenue in the foreseeable future.

Previous wording

We expect to continue to build on the discipline and habits that we developed in 2022 when we initiated several efforts to increase our operating efficiency, while still remaining focused on investing in significant opportunities. In the three months ended March 31, 2024, 81% of our total costs and expenses were recognized in FoA and 19% were recognized in RL. Our FoA investments include expenses relating to headcount, data centers, and technical infrastructure as part of our efforts to develop our apps and our advertising services. These efforts include significant investments in AI initiatives, including to recommend relevant content across our products, enhance our advertising tools, develop new products, and develop new features for existing products using generative AI.

Current wording

We expect to continue to build on the discipline and habits that we developed in 2022 when we initiated several efforts to increase our operating efficiency, while still remaining focused on investing in significant opportunities. In the six months ended June 30, 2024, 81% of our total costs and expenses were recognized in FoA and 19% were recognized in RL. Our FoA investments include expenses relating to headcount, data centers, and technical infrastructure as part of our efforts to develop our apps and our advertising services. These efforts include significant investments in AI initiatives, including to recommend relevant content across our products, enhance our advertising tools, develop new products, and develop new features for existing products using generative AI. In particular, we expect our AI initiatives will require increased investment in infrastructure and headcount.

Previous wording

We are also making significant investments in our metaverse efforts, including developing virtual, augmented, and mixed reality devices, software for social platforms, neural interfaces, and other foundational technologies for the metaverse. Our RL investments include expenses relating to technology development across these efforts. Many of our RL investments are directed toward long-term, cutting-edge research and development for products for the metaverse that may only be fully realized in the next decade. During the three months ended March 31, 2024, our RL segment reduced our overall operating profit by approximately $3.85 billion, and we expect our RL operating losses to increase meaningfully in 2024. We expect this will be a complex, evolving, and long-term initiative, and our ability to support our metaverse efforts is dependent on generating sufficient profits from other areas of our business. We are investing now because we believe this is the next chapter of the internet and will unlock monetization opportunities for businesses, developers, and creators, including around advertising, hardware, and digital goods.

Current wording

We are also making significant investments in our metaverse efforts, including developing virtual, augmented, and mixed reality devices, software for social platforms, neural interfaces, and other foundational technologies for the metaverse. Our RL investments include expenses relating to technology development across these efforts. Many of our RL investments are directed toward long-term, cutting-edge research and development for products for the metaverse that may only be fully realized in the next decade. During the six months ended June 30, 2024, our RL segment reduced our overall operating profit by approximately $8.33 billion, and we continue to expect our RL operating losses to increase meaningfully in 2024. We expect this will be a complex, evolving, and long-term initiative, and our ability to support our metaverse efforts is dependent on generating sufficient profits from other areas of our business. We are investing now because we believe this is the next chapter of the internet and will unlock monetization opportunities for businesses, developers, and creators, including around advertising, hardware, and digital goods.

Previous wording

We calculate our revenue by user geography based on our estimate of the geography in which ad impressions are delivered, virtual and digital goods are purchased, or consumer hardware products are shipped. The geography of our users affects our revenue and financial results. Our revenue in regions such as United States & Canada and Europe is relatively higher primarily due to the size and maturity of those online and mobile advertising markets, and ad impression growth is mostly in geographies that monetize at lower rates, such as Asia-Pacific and Rest of World. In the first quarter of 2024, revenue increased by 21% in United States & Canada, 34% in Europe, 26% in Asia-Pacific, and 42% in Rest of World, in each case relative to the same period in 2023.

Current wording

We calculate our revenue by user geography based on our estimate of the geography in which ad impressions are delivered, virtual and digital goods are purchased, or consumer hardware products are shipped. The geography of our users affects our revenue and financial results. Our revenue in regions such as United States & Canada and Europe is relatively higher primarily due to the size and maturity of those online and mobile advertising markets, and ad impression growth is primarily in geographies that monetize at lower rates, such as Asia-Pacific and Rest of World. In the second quarter of 2024, revenue increased by 17% in United States & Canada, 27% in Europe, 21% in Asia-Pacific, and 35% in Rest of World, in each case relative to the same period in 2023.

Previous wording

Worldwide DAP increased 7% to 3.24 billion on average during March 2024 from 3.02 billion during March 2023.

Current wording

Worldwide DAP increased 7% to 3.27 billion on average during June 2024 from 3.07 billion during June 2023.

Previous wording

During the first quarter of 2024, worldwide ARPP was $11.20, an increase of 18% from the first quarter of 2023.

Current wording

During the second quarter of 2024, worldwide ARPP was $11.89, an increase of 14% from the second quarter of 2023.

Previous wording

Research and development. Research and development expenses consist mostly of payroll and related expenses which include share-based compensation, RL technology development costs, facilities-related costs for employees on our engineering and technical teams who are responsible for developing new products as well as improving existing products, as well as infrastructure cost and restructuring charges.

Current wording

Research and development. Research and development expenses consist mostly of payroll and related expenses which include share-based compensation; RL technology development costs; facilities-related costs for employees on our engineering and technical teams who are responsible for developing new technologies and products as well as improving existing products; infrastructure costs; and restructuring charges.

Previous wording

(1) Percentages have been rounded for presentation purposes and may differ from unrounded results.

Current wording

(1)Percentages have been rounded for presentation purposes and may differ from unrounded results.

Previous wording

FoA revenue in the three months ended March 31, 2024 increased $7.71 billion, or 27%, compared to the same period in 2023. The increase was almost entirely driven by advertising revenue.

Current wording

FoA revenue in the three and six months ended June 30, 2024 increased $7.00 billion, or 22%, and $14.70 billion, or 24%, respectively, compared to the same periods in 2023. The increases were almost entirely driven by advertising revenue.

Previous wording

Advertising revenue in the three months ended March 31, 2024 increased $7.53 billion, or 27%, compared to the same period in 2023 due to increases in ad impressions delivered and average price per ad. During the three months ended March 31, 2024, ad impressions delivered increased by 20% as compared with an increase of 26% in the same period in 2023 as ad impressions grew in all regions, especially in Asia-Pacific and Rest of World. The increase in ad impressions delivered was primarily driven by an increase in users and their engagement on our products. During the three months ended March 31, 2024, the average price per ad increased by 6%, as compared with a decrease of 17% in the same period in 2023. The increase in average price per ad was driven by an increase in advertising demand which we believe is primarily due to ongoing improvements to our ad performance from our ad targeting and measurement tools. This increase was partially offset by a higher number of ad impressions delivered, especially in geographies and in products, such as Reels, that monetize at lower rates. Other factors are discussed in the section entitled "—Executive Overview of First Quarter Results." In addition, year-over-year advertising revenue growth in the three months ended March 31, 2024 was mainly driven by marketer spending in online commerce, gaming, as well as entertainment and media. We anticipate that future advertising revenue will be driven by a combination of price and ad impressions delivered.

Current wording

Advertising revenue in the three and six months ended June 30, 2024 increased $6.83 billion, or 22%, and $14.37 billion, or 24%, respectively, compared to the same periods in 2023 due to increases in ad impressions delivered and average price per ad. During the three and six months ended June 30, 2024, ad impressions delivered increased by 10% and 15%, respectively, year-over-year, as compared with increases of 34% and 30%, respectively, in the same periods in 2023 as ad impressions grew in all regions, especially in Asia-Pacific and Rest of World. The increases in ad impressions delivered were mostly driven by an increase in users and their engagement on our products. During the three and six months ended June 30, 2024, the average price per ad increased by 10% and 8%, respectively, year-over-year, as compared with decreases of 16% and 17%, respectively, in the same periods in 2023. The increases in average price per ad were driven by an increase in advertising demand which we believe is primarily due to ongoing improvements to our ad performance from our ad targeting and measurement tools. These increases were partially offset by a higher number of ad impressions delivered, especially in geographies and in products, such as Reels, that monetize at lower rates. Other factors are discussed in the section entitled "—Executive Overview of Second Quarter Results." In addition, year-over-year advertising revenue growth during the three and six months ended June 30, 2024 were mainly driven by increases in marketer spending in online commerce, gaming, as well as entertainment and media. We anticipate that future advertising revenue will be driven by a combination of price and ad impressions delivered.

Previous wording

FoA other revenue in the three months ended March 31, 2024 increased $175 million, or 85%, compared to the same period in 2023. The increase was primarily driven by WhatsApp Business Platform revenue.

Current wording

FoA other revenue in the three and six months ended June 30, 2024 increased $164 million, or 73%, and $339 million, or 79%, respectively, compared to the same periods in 2023. The increases were primarily driven by WhatsApp Business Platform revenue.

Previous wording

RL revenue in the three months ended March 31, 2024 increased $101 million, or 30%, compared to the same period in 2023. The increase in RL revenue was driven by a net increase in the volume of Meta Quest sales.

Current wording

RL revenue in the three and six months ended June 30, 2024 increased $77 million, or 28%, and $177 million, or 29%, respectively, compared to the same periods in 2023. The increases in RL revenue were driven by a net increase in the volume of Meta Quest sales.

Previous wording

Changes in foreign exchange rates had a favorable impact on our revenue in the three months ended March 31, 2024 compared to the same period in 2023. If we had translated revenue for the three months ended March 31, 2024 using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar, our total revenue and advertising revenue would have been $36.35 billion and $35.53 billion, respectively. Using these constant rates, total revenue and advertising revenue would have been $106 million and $105 million lower than actual total revenue and advertising revenue, respectively, for the three months ended March 31, 2024.

Current wording

Changes in foreign exchange rates had an unfavorable impact on our revenue in the three and six months ended June 30, 2024 compared to the same periods in 2023. To calculate revenue on a constant currency basis, we translated revenue using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar. Using these constant rates, for the three months ended June 30, 2024, our total revenue and advertising revenue would have been $39.44 billion and $38.70 billion, which were $371 million and $367 million higher than actual total revenue and advertising revenue, respectively. Using these constant rates, for the six months ended June 30, 2024, our total revenue and advertising revenue would have been $75.79 billion and $74.23 billion, which were $265 million and $261 million higher than actual total revenue and advertising revenue, respectively.

Previous wording

Cost of revenue in the three months ended March 31, 2024 increased $532 million, or 9%, compared to the same period in 2023. The increase was mostly from an increase in operational expenses related to our data centers and technical infrastructure which was partially offset by a decrease in RL inventory-related valuation adjustments.

Current wording

Cost of revenue in the three and six months ended June 30, 2024 increased $1.36 billion, or 23%, and $1.89 billion, or 16%, respectively, compared to the same periods in 2023. The increases were primarily due to increases in operational expenses related to our data centers and technical infrastructure, mostly from higher depreciation expense. In the three months ended June 30, 2024, the increase was also driven by higher RL inventory costs.

Previous wording

Research and development expenses in the three months ended March 31, 2024 increased $597 million, or 6%, compared to the same period in 2023. The increase was mostly from higher payroll and related expenses and infrastructure costs, offset by a decrease in restructuring charges.

Current wording

Research and development expenses in the three and six months ended June 30, 2024 increased $1.19 billion, or 13%, or $1.79 billion, or 10%, respectively, compared to the same periods in 2023. The increases were mostly due to higher payroll and related expenses and infrastructure costs for research and development, partially offset by lower restructuring charges.

Previous wording

Marketing and sales expenses in the three months ended March 31, 2024 decreased $480 million, or 16%, compared to the same period in 2023. The decrease was mainly due to decreases in restructuring charges, product and community operations expenses, and marketing and promotional expenses.

Current wording

Marketing and sales expenses in the three and six months ended June 30, 2024 decreased $433 million, or 14%, and $913 million, or 15%, respectively, compared to the same periods in 2023. The decreases were mainly due to decreases in restructuring charges and payroll and related expenses. In the six months ended June 30, 2024, the decrease was also driven by a decrease in product and community operations expenses.

Previous wording

General and administrative expenses in the three months ended March 31, 2024 increased $570 million, or 20%, compared to the same period in 2023. The increase was driven by higher legal-related costs, partially offset by a decrease in restructuring charges.

Current wording

General and administrative expenses in the six months ended June 30, 2024 increased $65 million, or 1%, compared to the same period in 2023. The increase was driven by increases in other taxes and legal-related costs, partially offset by lower restructuring charges.

Previous wording

FoA income from operations in the three months ended March 31, 2024 increased $6.44 billion, or 57%, compared to the same period in 2023. The increase in FoA income from operations was driven by higher advertising revenue which was partially offset by an increase in costs and expenses. The increase in the costs and expenses was due to increases in legal-related costs and operational expenses related to our data centers and technical infrastructure, offset by a decrease in restructuring charges.

Current wording

FoA income from operations in the three and six months ended June 30, 2024 increased $6.20 billion, or 47%, and $12.65 billion, or 52%, respectively, compared to the same periods in 2023. The increases in FoA income from operations were driven by higher advertising revenue which was partially offset by increases in costs and expenses. The increases in costs and expenses were mainly due to increases in operational expenses related to our data centers and technical infrastructure, mostly from higher depreciation expense as well as payroll and related costs. These increases were partially offset by lower restructuring charges.

Previous wording

RL loss from operations in the three months ended March 31, 2024 decreased $146 million, or 4%, compared to the same period in 2023. The decrease in RL loss from operations was driven by an increase in RL revenue and a slight decrease in RL costs and expenses. The decrease in the costs and expenses was driven by lower RL inventory-related valuation adjustments and restructuring charges, offset by an increase in payroll and related costs.

Current wording

RL loss from operations in the three and six months ended June 30, 2024 increased $749 million, or 20%, and $602 million, or 8%, respectively, compared to the same periods in 2023, driven by increases in RL costs and expenses. RL costs and expenses increased primarily due to higher payroll and related costs. In the three months ended June 30, 2024, the increase was also driven by an increase in RL inventory costs.

Previous wording

See Note 3 — Restructuring and Note 12 — Commitments and Contingencies in the notes to the condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q for additional information regarding restructuring charges and legal-related costs, respectively.

Current wording

See Note 3 — Restructuring, Note 7 — Property and Equipment, and Note 12 — Commitments and Contingencies in the notes to the condensed consolidated financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q for additional information regarding restructuring charges, depreciation expense, and legal-related costs, respectively.

Previous wording

Interest and other income, net

Current wording

Interest and other income (expense), net

Previous wording

Interest and other income, net in the three months ended March 31, 2024 increased $285 million, or 356%, compared to the same period in 2023. The increase in interest income was due to a combination of higher balances and higher interest rates, compared to the same period in 2023.

Current wording

Interest and other income (expense), net in the three and six months ended June 30, 2024 increased $358 million and $643 million, respectively, compared to the same periods in 2023. The increases in interest income were due to a combination of higher balances and higher interest rates, compared to the same periods in 2023.

Previous wording

Our provision for income taxes in the three months ended March 31, 2024 increased $216 million, or 14%, compared to the same period in 2023, due to an increase in income before provision for income taxes.

Current wording

Our provision for income taxes in the three and six months ended June 30, 2024 increased $136 million, or 9%, and $353 million, or 11%, respectively, compared to the same periods in 2023, due to increases in income before provision for income taxes.

Previous wording

Our effective tax rate decreased in the three months ended March 31, 2024 compared to the same period in 2023, primarily due to excess tax benefits recognized from share-based compensation.

Current wording

Our effective tax rate decreased in the three and six months ended June 30, 2024 compared to the same periods in 2023, primarily due to excess tax benefits recognized from share-based compensation.

Previous wording

Our principal sources of liquidity are our cash, cash equivalents, marketable securities, and cash generated from operations. Cash, cash equivalents, and marketable securities are comprised of cash on deposit with banks, time deposits, money market funds, U.S. government and agency securities, and investment grade corporate debt securities. As part of our cash management strategy, we concentrate cash deposits with large financial institutions and our investment holdings are in diversified highly rated securities. Cash, cash equivalents, and marketable securities were $58.12 billion as of March 31, 2024, a decrease of $7.28 billion from December 31, 2023. The decrease was primarily due to $15.01 billion for repurchases of our Class A common stock, $6.72 billion for capital expenditures, including principal payments on finance leases, and $3.16 billion of taxes paid related to net share settlement of employee restricted stock unit (RSU) awards. These decreases were partially offset by $19.25 billion of cash generated from operations.

Current wording

Our principal sources of liquidity are our cash, cash equivalents, marketable securities, and cash generated from operations. Cash, cash equivalents, and marketable securities are comprised of cash on deposit with banks, time deposits, money market funds, U.S. government and agency securities, and investment grade corporate debt securities. As part of our cash management strategy, we concentrate cash deposits with large financial institutions and our investment holdings are in diversified highly rated securities. Cash, cash equivalents, and marketable securities were $58.08 billion as of June 30, 2024, a decrease of $7.32 billion from December 31, 2023. The decrease was mostly due to our capital returns of $23.85 billion for repurchases of our Class A common stock and dividend payments, $15.19 billion for capital expenditures, including principal payments on finance leases, and $6.37 billion of taxes paid related to net share settlement of employee restricted stock unit (RSU) awards. These decreases were offset by $38.62 billion of cash generated from operations.

Previous wording

Cash provided by operating activities during the three months ended March 31, 2024 mostly consisted of $12.37 billion net income adjusted for certain non-cash items, such as $3.56 billion of share-based compensation expense, and $3.37 billion of depreciation and amortization expense. The increase in cash flows from operating activities during the three months ended March 31, 2024, compared to the same period in 2023, was due to an increase in cash collection from our customers driven by the increase in revenue, partially offset by higher operating spending.

Current wording

Cash provided by operating activities during the six months ended June 30, 2024 mostly consisted of $25.83 billion net income adjusted for certain non-cash items, such as $8.18 billion of share-based compensation expense, and $7.01 billion of depreciation and amortization expense. The increase in cash flows from operating activities during the six months ended June 30, 2024, compared to the same period in 2023, was due to an increase in cash collection from our customers driven by the increase in revenue, partially offset by higher cash paid for income taxes and other operational spending.

Previous wording

Cash used in investing activities during the three months ended March 31, 2024 mostly consisted of $6.40 billion of net purchases of property and equipment as we continued to invest in servers, data centers, and network infrastructure, and $2.26 billion of net purchases of marketable debt securities. The increase in cash used in investing activities during the three months ended March 31, 2024, compared to the same period in 2023, was mainly due to an increase in purchases of marketable debt securities.

Current wording

Cash used in investing activities during the six months ended June 30, 2024 mostly consisted of $14.57 billion of net purchases of property and equipment as we continued to invest in servers, data centers, and network infrastructure and $2.32 billion of net purchases of marketable debt securities. The increase in cash used in investing activities during the six months ended June 30, 2024, compared to the same period in 2023, was driven by increases in purchases of marketable debt securities and property and equipment.

Previous wording

We anticipate making capital expenditures of approximately $35 billion to $40 billion in 2024.

Current wording

We anticipate making capital expenditures of approximately $37 billion to $40 billion in 2024. We currently expect our capital expenditures to grow significantly in 2025 as we invest to support our AI research and product development efforts.

Previous wording

Cash used in financing activities during the three months ended March 31, 2024 mostly consisted of $15.01 billion for repurchases of our Class A common stock, $3.16 billion of taxes paid related to net share settlement of RSUs, and $1.27 billion of cash dividends paid for our common stock. The increase in cash used in financing activities during the three months ended March 31, 2024, compared to the same period in 2023, was mostly due to an increase in cash paid for repurchases of our Class A common stock, an increase in taxes paid related to net share settlement of employee RSU awards, and the dividends payments that began in March 2024.

Current wording

Cash used in financing activities during the six months ended June 30, 2024 mostly consisted of $21.31 billion for repurchases of our Class A common stock, $6.37 billion of taxes paid related to net share settlement of RSUs, and $2.54 billion of cash dividends paid for our common stock. The increase in cash used in financing activities during the six months ended June 30, 2024, compared to the same period in 2023, was driven by increases in repurchases of our Class A common stock, taxes paid related to net share settlement of RSUs, and quarterly dividend payments that began in March 2024. In addition, the increase was also driven by net proceeds from debt offerings which took place in May 2023.

Previous wording

We currently anticipate that our available funds and cash flow from operations and financing activities will be sufficient to meet our operational cash needs and fund our share repurchases and dividends payments for at least the next 12 months and thereafter for the foreseeable future. We continuously evaluate our liquidity and capital resources, including our access to external capital, to ensure we can finance our future capital requirements.

Current wording

We currently anticipate that our available funds and cash flow from operations and financing activities will be sufficient to meet our operational cash needs and fund our investments in infrastructure and AI initiatives, share repurchases and dividend payments for at least the next 12 months and thereafter for the foreseeable future. We continuously evaluate our liquidity and capital resources, including our access to external capital, to ensure we can finance our future capital requirements.