Ad Growth Fueled by Impressions and Pricing Gains
Total revenue grew 28% year-over-year to $60.80 billion, driven by a 14% increase in ad impressions and a 12% increase in average price per ad, with the online commerce vertical as the largest contributor.
Cost Surge Driven by R&D and Legal Charges
Total costs and expenses surged 55% to $42.03 billion, with R&D up 67% on higher infrastructure, AI token costs, and severance, and G&A more than doubling to $5.61 billion due to $2.40 billion in legal-related charges.
Heavy AI Infrastructure Investment
Capital expenditures, including finance lease principal payments, reached $31.08 billion in the quarter, reflecting a significant acceleration in data center and technical infrastructure investment to support AI initiatives.