Meta beats Q1 2025 revenue estimates as ad prices and impressions rise
The company says its focus is on expanding its AI ad tools

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Meta reported a strong advertising performance in the first quarter of 2025. Ad impressions across Facebook, Instagram, and the company’s broader Family of Apps increased by 5% year-over-year. Even more notable for advertisers, the average price per ad rose 10%. That means Meta not only served more ads but was also able to charge more for them.
In Q1, the company brought in $42.31 billion in revenue, up 16% from the same time last year and well above Wall Street’s forecast of $41.36 billion. Mark Zuckerberg, Meta’s CEO, called it a “strong start to an important year” during the company’s earnings call.Â
Meta’s profit surged 35% to hit $16.6 billion. Most of that came from advertising, which remains Meta’s core business. Marketers continued to spend on Meta’s platforms despite global economic uncertainty and early signs of caution in the ad market.Â
New ad formats and platforms push the business forward
Meta is leveraging its platforms to boost its advertising business. The company has started testing ads in Facebook notifications. This could be another way of getting more value out of existing user engagement. Though early, it shows that Meta is looking for more places to display ads, especially as competition from players like Google, OpenAI, and DeepSeek AI heats up.
Daily active users in March 2025 stood at 3.43 billion, up 6% year-over-year. Meta’s X-like app, Threads now boasts 350 million monthly active users, according to Zuckerberg. This is up from 320 million MAU it reported previously. This is another platform to watch. Ads have rolled out to Threads already, but Meta is not expecting it to significantly impact its revenue this year.Â
Meta is also laying serious groundwork for business messaging on WhatsApp and Messenger. Zuckerberg called this one of the next “major growth pillars” for the company, with plans to scale its ad business beyond just feeds and stories.
AI leads Meta’s advertising businessÂ
AI is front and center in Meta’s strategy. During the earnings call, Zuckerberg said Meta AI—its ChatGPT competitor—is now being used by nearly a billion people each month.
AI is now “generating better creative options” and helping businesses drive “measurable results at scale,” he said. That means apart from content recommendation, Meta is using AI to improve targeting, personalize creativity, and optimize campaign delivery.
Meta is positioning AI as an "advertising agent." This is something marketers should pay attention to. It could be a shift where generative tools could become the front door to ad creation and strategy. The company recently rolled out a standalone Meta AI app to compete with the likes of ChatGPT. This new app also reflects where Meta believes the next wave of ad opportunities will emerge.
Revenue guidance stays strong despite economic uncertainties
While Meta’s numbers looked strong, executives warned that economic uncertainties may impact its future revenue. CFO Susan Li said the company has noticed some drop-off in ad spend from Asian e-commerce clients. This is likely tied to rising trade tensions. U.S. tariffs on China, pushed by President Trump, are beginning to show ripple effects in the digital ad market. However, Li said, “revenue trends have generally been healthy.”
Meta also faces antitrust issues. The Federal Trade Commission is suing to break up the company’s ownership of Instagram and WhatsApp, claiming the acquisitions were anti-competitive. That trial is now underway in Washington. While it’s too early to predict an outcome, advertisers should be aware of the potential long-term impact if Meta is forced to divest major platforms.
The company expects Q2 2025 revenue to land between $42.5 billion and $45.5 billion. That would mark up to 16.5% year-over-year growth. Its updated full-year expense guidance is now at $113–$118 billion— slightly lower than before.
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