Meta Platforms

Ring 1 Core AI revenue estimate for Q2 2024. Total revenue: $39,071M (FoA: $38,718M, RL: $353M). Ad impressions +10% YoY, avg price per ad +10% YoY. The shift from impression growth to price growth suggests AI-driven ad efficiency improvements are translating to higher CPMs. Advantage+ adoption continued growing -- Meta disclosed over 1.5M advertisers using Advantage+ products. Generative AI ad creative tools expanded (background generation, image expansion). AI recommendation engine improvements continued driving Reels engagement and monetization. The +10% price-per-ad increase partly reflects improved AI targeting. Conservative estimate: ~6% of total revenue ($2.34B) from Ring 1 AI. The price-per-ad increase suggests AI quality improvements, but separating this from macro ad market recovery is difficult. Being conservative.