MENLO PARK, Calif., Feb. 2, 2022 /PRNewswire/ — Meta Platforms, Inc. (Nasdaq: FB) today reported financial results for the quarter and full year ended December 31, 2021.




“We had a solid quarter as people turned to our products to stay connected and businesses continued to use our services to grow,” said Mark Zuckerberg, Meta founder and CEO. “I’m encouraged by the progress we made this past year in a number of important growth areas like Reels, commerce, and virtual reality, and we’ll continue investing in these and other key priorities in 2022 as we work towards building the metaverse.”


Fourth Quarter and Full Year 2021 Financial Highlights

















Three Months Ended December 31,





Year-over-
Year %



Change





Year Ended December 31,





Year-over-
Year %



Change





In millions, except percentages and

 



2021



 



2020





 



2021



 



2020





per share amounts












Total revenue


$           33,671




$           28,072




20%




$        117,929




$          85,965




37%


Total costs and expenses


21,086




15,297




38%




71,176




53,294




34%


Income from operations


$           12,585




$           12,775




(1)%




$          46,753




$          32,671




43%



Operating margin



37%





46%









40%





38%






Provision for income taxes


$             2,417




$             1,836




32%




$            7,914




$            4,034




96%



Effective tax rate



19%





14%









17%





12%






Net income


$           10,285




$           11,219




(8)%




$          39,370




$          29,146




35%


Diluted earnings per share (EPS)


$               3.67




$               3.88




(5)%




$            13.77




$            10.09




36%


Fourth Quarter and Full Year 2021 Operational and Other Financial Highlights


  • Family daily active people (DAP) – DAP was 2.82 billion on average for December 2021, an increase of 8% year-over-year.

  • Family monthly active people (MAP) – MAP was 3.59 billion as of December 31, 2021, an increase of 9% year-over-year.

  • Facebook daily active users (DAUs) – DAUs were 1.93 billion on average for December 2021, an increase of 5% year-over-year.

  • Facebook monthly active users (MAUs) – MAUs were 2.91 billion as of December 31, 2021, an increase of 4% year-over-year.

  • Ad impressions and price per ad – In the fourth quarter of 2021, ad impressions delivered across our Family of Apps increased by 13% year-over-year and the average price per ad increased by 6% year-over-year. For the full year 2021, ad impressions increased by 10% year-over-year and the average price per ad increased by 24% year-over-year.

  • Capital expenditures – Capital expenditures, including principal payments on finance leases, were $5.54 billion and $19.24 billion for the fourth quarter and full year 2021, respectively.

  • Share repurchases – We repurchased $19.18 billion and $44.81 billion of our Class A common stock in the fourth quarter and full year 2021, respectively. As of December 31, 2021, we had $38.79 billion available and authorized for repurchases.

  • Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $48.0 billion as of December 31, 2021.

  • Headcount – Headcount was 71,970 as of December 31, 2021, an increase of 23% year-over-year.


New Financial Reporting Segment Structure and Operating Results

Beginning in the fourth quarter of 2021, we report our financial results based on two reportable segments:


  • Family of Apps (FoA), which includes Facebook, Instagram, Messenger, WhatsApp and other services.

  • Reality Labs (RL), which includes augmented and virtual reality related consumer hardware, software and content.





















Segment Information



(In millions)



(Unaudited)







Three Months Ended





Year Ended December 31,





December 31,
2021





September 30,
2021





June 30,
2021





March 31,
2021





December 31,
2020





2021





2020





2019


Revenue:
































Advertising


$       32,639




$       28,276




$     28,580




$     25,439




$       27,187




$  114,934




$  84,169




$  69,655


Other revenue


155




176




192




198




168




721




657




541


Family of Apps


32,794




28,452




28,772




25,637




27,355




115,655




84,826




70,196


Reality Labs


877




558




305




534




717




2,274




1,139




501


Total revenue


$       33,671




$       29,010




$     29,077




$     26,171




$       28,072




$  117,929




$  85,965




$  70,697


































Income (loss) from operations:
































Family of Apps


$       15,889




$       13,054




$     14,799




$     13,205




$       14,874




$  56,946




$  39,294




$  28,489


Reality Labs


(3,304)




(2,631)




(2,432)




(1,827)




(2,099)




(10,193)




(6,623)




(4,503)


Total income from operations


$       12,585




$       10,423




$     12,367




$     11,378




$       12,775




$  46,753




$  32,671




$  23,986


CFO Outlook Commentary

We expect first quarter 2022 total revenue to be in the range of $27-29 billion, which represents 3-11% year-over-year growth. We expect our year-over-year growth in the first quarter to be impacted by headwinds to both impression and price growth.

  • On the impressions side, we expect continued headwinds from both increased competition for people’s time and a shift of engagement within our apps towards video surfaces like Reels, which monetize at lower rates than Feed and Stories. 
  • On the pricing side, we expect growth to be negatively impacted by a few factors:
    • First, we will lap a period in which Apple’s iOS changes were not in effect and we anticipate modestly increasing ad targeting and measurement headwinds from platform and regulatory changes.
    • Second, we will lap a period of strong demand in the prior year and we’re hearing from advertisers that macroeconomic challenges like cost inflation and supply chain disruptions are impacting advertiser budgets.
    • Finally, based on current exchange rates, we expect foreign currency to be a headwind to year-over-year growth.

In addition, as previously noted, we also continue to monitor developments regarding the viability of transatlantic data transfers and their potential impact on our European operations.

We expect 2022 total expenses to be in the range of $90-95 billion, updated from our prior outlook of $91-97 billion. Our anticipated expense growth is driven by investments in technical and product talent and infrastructure-related costs.

We expect 2022 capital expenditures, including principal payments on finance leases, to be in the range of $29-34 billion, unchanged from our prior estimate. Our planned capital expenditures are primarily driven by investments in data centers, servers, network infrastructure, and office facilities. As we discussed previously, this range reflects a significant increase in our artificial intelligence and machine learning investments, which will support a number of areas across our Family of Apps. While our Reality Labs products and services may require more infrastructure capacity in the future, they do not require substantial capacity today and, as a result, are not a significant driver of 2022 capital expenditures.

Absent any changes to U.S. tax law, we expect our full-year 2022 tax rate to be similar to the full-year 2021 rate.


Ticker Symbol Change to META

Meta’s Class A common stock is expected to begin trading on NASDAQ under the ticker symbol ‘META’ in the first half of 2022. This will replace the current ticker symbol ‘FB,’ which has been used since the company’s initial public offering in 2012, and more details on exact timing will be forthcoming. No action is required by our stockholders with respect to the ticker symbol change and it does not affect the rights of our stockholders. Our Class A common stock will continue to be listed on NASDAQ and the CUSIP number will remain unchanged.


Webcast and Conference Call Information

Meta will host a conference call to discuss the results at 2 p.m. PT / 5 p.m. ET today. The live webcast of Meta’s earnings conference call can be accessed at investor.fb.com, along with the earnings press release, financial tables, and slide presentation. Meta uses the investor.fb.com and about.fb.com/news/ websites as well as Mark Zuckerberg’s Facebook Page (facebook.com/zuck) and Instagram account (instagram.com/zuck) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Following the call, a replay will be available at the same website. A telephonic replay will be available for one week following the conference call at +1 (402) 977-9140 or +1 (800) 633-8284, conference ID 22013689.

Transcripts of conference calls with publishing equity research analysts held today will also be posted to the investor.fb.com website.


About Meta

Meta builds technologies that help people connect, find communities, and grow businesses. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram and WhatsApp further empowered billions around the world. Now, Meta is moving beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology.


Contacts

Investors:
Deborah Crawford
[email protected] / investor.fb.com

Press:
Ryan Moore
[email protected] / about.fb.com/news/


Forward-Looking Statements

This press release contains forward-looking statements regarding our future business plans and expectations. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: the impact of the COVID-19 pandemic on our business and financial results; our ability to retain or increase users and engagement levels; our reliance on advertising revenue; our dependency on data signals and mobile operating systems, networks, and standards that we do not control; risks associated with new products and changes to existing products as well as other new business initiatives, including our metaverse efforts; our emphasis on community growth and engagement and the user experience over short-term financial results; maintaining and enhancing our brand and reputation; our ongoing privacy, safety, security, and content review efforts; competition; risks associated with government actions that could restrict access to our products or impair our ability to sell advertising in certain countries; litigation and government inquiries; privacy and regulatory concerns; risks associated with acquisitions; security breaches; and our ability to manage growth and geographically-dispersed operations. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q filed with the SEC on October 26, 2021, which is available on our Investor Relations website at investor.fb.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2021. In addition, please note that the date of this press release is February 2, 2022, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.


Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: revenue excluding foreign exchange effect, advertising revenue excluding foreign exchange effect and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.

We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.

We exclude the following items from our non-GAAP financial measures:


Foreign exchange effect on revenue. We translated revenue for the three months and full year ended December 31, 2021 using the prior year’s monthly exchange rates for our settlement or billing currencies other than the U.S. dollar, which we believe is a useful metric that facilitates comparison to our historical performance.


Purchases of property and equipment; Principal payments on finance leases. We subtract both purchases of property and equipment and principal payments on finance leases in our calculation of free cash flow because we believe that these two items collectively represent the amount of property and equipment we need to procure to support our business, regardless of whether we procure such property or equipment with a finance lease. We believe that this methodology can provide useful supplemental information to help investors better understand underlying trends in our business. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures.

For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the “Reconciliation of GAAP to Non-GAAP Results” table in this press release.







































META PLATFORMS, INC.





CONDENSED CONSOLIDATED STATEMENTS OF INCOME



(In millions, except for per share amounts)



(Unaudited)







Three Months Ended December 31,





Twelve Months Ended December 31,





2021





2020





2021





2020



Revenue


$          33,671




$          28,072




$         117,929




$           85,965



Costs and expenses:
















Cost of revenue


6,348




5,210




22,649




16,692


Research and development


7,046




5,208




24,655




18,447


Marketing and sales


4,387




3,280




14,043




11,591


General and administrative


3,305




1,599




9,829




6,564



Total costs and expenses


21,086




15,297




71,176




53,294



Income from operations


12,585




12,775




46,753




32,671


Interest and other income, net


117




280




531




509


Income before provision for income taxes


12,702




13,055




47,284




33,180


Provision for income taxes


2,417




1,836




7,914




4,034



Net income


$          10,285




$          11,219




$           39,370




$           29,146



Earnings per share attributable to Class A and Class B

















common stockholders:
















Basic


$               3.72




$               3.94




$              13.99




$              10.22


Diluted


$               3.67




$               3.88




$              13.77




$              10.09



Weighted-average shares used to compute earnings per

















share attributable to Class A and Class B common

















stockholders:
















Basic


2,765




2,850




2,815




2,851


Diluted


2,799




2,890




2,859




2,888



Share-based compensation expense included in costs and

















expenses:
















Cost of revenue


$                149




$                120




$                 577




$                 447


Research and development


1,882




1,361




7,106




4,918


Marketing and sales


206




175




837




691


General and administrative


169




128




644




480



Total share-based compensation expense


$             2,406




$             1,784




$              9,164




$              6,536

 











































META PLATFORMS, INC.





CONDENSED CONSOLIDATED BALANCE SHEETS



(In millions)



(Unaudited)







December 31,
2021





December 31,
2020



Assets








Current assets:








Cash and cash equivalents


$                  16,601




$                  17,576


Marketable securities


31,397




44,378


Accounts receivable, net


14,039




11,335


Prepaid expenses and other current assets


4,629




2,381


Total current assets


66,666




75,670


Equity investments


6,775




6,234


Property and equipment, net


57,809




45,633


Operating lease right-of-use assets


12,155




9,348


Intangible assets, net


634




623


Goodwill


19,197




19,050


Other assets


2,751




2,758



Total assets


$                165,987




$                159,316











Liabilities and stockholders’ equity








Current liabilities:








Accounts payable


$                    4,083




$                    1,331


Partners payable


1,052




1,093


Operating lease liabilities, current


1,127




1,023


Accrued expenses and other current liabilities


14,312




11,152


Deferred revenue and deposits


561




382


Total current liabilities


21,135




14,981


Operating lease liabilities, non-current


12,746




9,631


Other liabilities


7,227




6,414


Total liabilities


41,108




31,026


Commitments and contingencies








Stockholders’ equity:








Common stock and additional paid-in capital


55,811




50,018


Accumulated other comprehensive income (loss)


(693)




927


Retained earnings


69,761




77,345


Total stockholders’ equity


124,879




128,290



Total liabilities and stockholders’ equity


$                165,987




$                159,316

 

























































META PLATFORMS, INC.





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



(In millions)



(Unaudited)







Three Months Ended
December 31,





Twelve Months Ended
December 31,





2021





2020





2021





2020



Cash flows from operating activities
















Net income


$      10,285




$      11,219




$     39,370




$     29,146


Adjustments to reconcile net income to net cash provided by
















operating activities:
















Depreciation and amortization


2,014




1,863




7,967




6,862


Share-based compensation


2,406




1,784




9,164




6,536


Deferred income taxes


748




(377)




609




(1,192)


Other


34




62




(127)




118


Changes in assets and liabilities:
















Accounts receivable


(2,038)




(3,059)




(3,110)




(1,512)


Prepaid expenses and other current assets


817




225




(1,750)




135


Other assets


(165)




(25)




(349)




(34)


Accounts payable


876




(56)




1,436




(17)


Partners payable


151




278




(12)




178


Accrued expenses and other current liabilities


2,462




2,218




3,357




(1,054)


Deferred revenue and deposits


100




(3)




187




108


Other liabilities


414




(89)




941




(527)



Net cash provided by operating activities


18,104




14,040




57,683




38,747



Cash flows from investing activities
















Purchases of property and equipment


(5,370)




(4,613)




(18,567)




(15,115)


Purchases of marketable securities


(6,093)




(5,737)




(30,407)




(33,930)


Sales of marketable securities


16,340




2,008




31,671




11,787


Maturities of marketable securities


1,598




3,260




10,915




13,984


Purchases of equity investments


(2)




(59)




(47)




(6,361)


Acquisitions of businesses, net of cash acquired, and purchases of
















intangible assets


(521)




(5)




(851)




(388)


Other investing activities


(123)




(27)




(284)




(36)



Net cash provided by (used in) investing activities


5,829




(5,173)




(7,570)




(30,059)



Cash flows from financing activities
















Taxes paid related to net share settlement of equity awards


(1,507)




(1,121)




(5,515)




(3,564)


Repurchases of Class A common stock


(20,063)




(1,928)




(44,537)




(6,272)


Principal payments on finance leases


(172)




(205)




(677)




(604)


Net change in overdraft in cash pooling entities





48




14




24


Other financing activities








(13)




124



Net cash used in financing activities


(21,742)




(3,206)




(50,728)




(10,292)


Effect of exchange rate changes on cash, cash equivalents, and restricted cash


(130)




314




(474)




279


Net increase (decrease) in cash, cash equivalents, and restricted cash


2,061




5,975




(1,089)




(1,325)


Cash, cash equivalents, and restricted cash at beginning of the period


14,804




11,979




17,954




19,279



Cash, cash equivalents, and restricted cash at end of the period


$      16,865




$      17,954




$     16,865




$     17,954



















Reconciliation of cash, cash equivalents, and restricted cash to the condensed

















consolidated balance sheets
















Cash and cash equivalents


$      16,601




$      17,576




$     16,601




$     17,576


Restricted cash, included in prepaid expenses and other current assets


149




241




149




241


Restricted cash, included in other assets


115




137




115




137



Total cash, cash equivalents, and restricted cash


$      16,865




$      17,954




$     16,865




$     17,954

 






















META PLATFORMS, INC.





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS



(In millions)



(Unaudited)







Three Months Ended
December 31,





Twelve Months Ended
December 31,





2021





2020





2021





2020



Supplemental cash flow data
















Cash paid for income taxes, net


$            606




$        1,107




$        8,525




$        4,229


Non-cash investing and financing activities:
















Property and equipment in accounts payable and accrued expenses
















and other current liabilities


$         3,404




$         2,201




$         3,404




$         2,201


Acquisition of businesses in accrued expenses and other current
















liabilities and other liabilities


$              73




$            118




$              73




$            118


Other current assets through financing arrangement in accrued expenses
















and other current liabilities


$            508




$              —




$            508




$              —


Repurchases of Class A common stock in accrued expenses and other
















current liabilities


$            340




$              68




$            340




$              68

 

























Reconciliation of GAAP to Non-GAAP Results





(In millions, except percentages)



(Unaudited)







Three Months Ended
December 31,





Twelve Months Ended
December 31,





2021





2020





2021





2020


GAAP revenue


$       33,671




$       28,072




$     117,929




$       85,965


Foreign exchange effect on 2021 revenue using 2020 rates


307








(1,640)






Revenue excluding foreign exchange effect


$       33,978








$     116,289






GAAP revenue year-over-year change %


20%








37%






Revenue excluding foreign exchange effect year-over-year change %


21%








35%






GAAP advertising revenue


$       32,639




$       27,187




$     114,934




$       84,169


Foreign exchange effect on 2021 advertising revenue using 2020 rates


306








(1,620)






Advertising revenue excluding foreign exchange effect


$       32,945








$     113,314






GAAP advertising revenue year-over-year change %


20%








37%






Advertising revenue excluding foreign exchange effect year-over-year change %


21%








35%






















Net cash provided by operating activities


$       18,104




$       14,040




$       57,683




$       38,747


Purchases of property and equipment


(5,370)




(4,613)




(18,567)




(15,115)


Principal payments on finance leases


(172)




(205)




(677)




(604)


Free cash flow (1)


$       12,562




$         9,222




$       38,439




$       23,028





____________________________________



(1) Free cash flow in the year ended December 31, 2020 reflects the $5.0 billion FTC settlement that was paid in April 2020.

 


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