The Silicon Valley company, which owns Facebook, Instagram and WhatsApp, said it does not plan to slow down its investments anytime soon.
For the last few years, Meta has faced criticism from investors for spending on future-facing projects like artificial intelligence, chatbots and the metaverse.
Now Meta wants everyone to know that at least some of those investments are starting to pay off.
On Wednesday, the Silicon Valley company reported double-digit revenue and profit growth for the third quarter, driven largely by advancements in its systems for advertisement targeting and suggesting relevant posts and videos to users. The improvements came from its continued investments in artificial intelligence, the company said.
Revenue was $40.6 billion, up 19 percent from a year earlier and above Wall Street estimates of $40.2 billion, according to data compiled by FactSet, a market analysis firm. Profit was $15.7 billion, up 35 percent from $11.6 billion a year earlier.
But Meta also said it would continue a huge spending spree that has spooked Wall Street. The company said it spent $23.2 billion on costs and expenses and $9.2 billion in capital expenditures in the third quarter, including on computing infrastructure for A.I., building the immersive world of the metaverse and other expenses. It also raised its annual spending forecast to $38 billion to $40 billion, up from the $37 billion to $40 billion it had projected in July.
The company said it anticipates a “significant acceleration in infrastructure expense growth” in 2025, as it continues to invest in building new data centers and other A.I.-related costs.
Shares of Meta fell more than 2 percent in after-hours trading, after closing at $591.80.
The third quarter figures underscored how Meta’s digital advertising business continues to buttress its extravagant spending. Executives have said its huge investments in A.I. and the metaverse will improve all of its services. The company has raised its spending forecast several times this year.