Meta Reports 80 Million New Users and 16% Ad Revenue Growth in Q1
Meta saw 80M new users in Q1 2025, with a 16% revenue boost. Ad impressions and AI investments position the company for continued growth in the tech sector.
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Meta Platforms Inc. reported first-quarter results for 2025 showing user growth across its apps and revenue gains in its advertising unit, reinforcing funds for technology projects ahead.
Meta added 80 million users in its Family of Apps in Q1, raising its average monthly active users to 3.43 billion in March. The expansion reflects broader adoption of Facebook, Instagram, Messenger, WhatsApp and Threads, which reached 320 million users independently during the quarter.
The user base now covers about 40 per cent of the global population, excluding users under 13 and regions where apps are unavailable. That reach underpins Meta’s advertising platform, which generated $42.31 billion in revenue in the quarter, a 16 per cent increase from the same period in 2024.
Reality Labs, the division behind Ray-Ban smart glasses and other wearable devices, posted a revenue decline compared with Q1 last year. Meta said AI features added to Ray-Ban glasses will support future growth but noted the unit is not yet profitable.
Operating expenses for Q1 rose to $24.76 billion, up 9 per cent year over year. Capital expenditures, driven by AI data center construction and network development, reached $13.69 billion as Meta pursues infrastructure to support artificial intelligence services and virtual reality projects.
Meta said advertising impressions climbed 5 per cent from a year earlier while the average price per ad rose 10 per cent, helping offset higher costs. The company plans further investments in AI research, AR glasses and metaverse applications funded by ad sales.
Meta executives cited the company’s decade of AI work as a factor in responding to the industry shift after public release of generative AI tools. The strategy aims to integrate AI into core services while maintaining progress on long-term virtual reality and augmented reality goals.
Investors and analysts said Meta’s mix of user growth, ad revenue gains and technology spending positions the company to adapt to market changes and compete in artificial intelligence and immersive technology sectors.
