01—Abstract
Summary
Summary of the 10-K filed February 1, 2013. Cited figures are marked; the original filing is the authoritative source.
Meta Platforms, Inc. (formerly Facebook) filed its 2012 10-K on January 31, 2013, reporting significant growth across its user base and key operational metrics.
As of December 31, 2012, the company boasted 1.06 billion monthly active users (MAUs), a 25% increase year-over-year, and 618 million daily active users (DAUs), up 28%. The company highlighted strong performance in mobile user growth, with 680 million mobile MAUs, a 57% increase. Financially, revenue reached $5.09 billiona, up 37% from 2011, primarily driven by advertising.
However, net income saw a sharp decline to $53 millionb from $1 billion in the prior year, largely due to a significant increase in share-based compensation expenses, particularly related to RSUs vesting upon the company's IPO in May 2012. The filing also detailed the acquisition of Instagram in August 2012 and outlined strategic priorities including expanding the global user community, enhancing mobile products, and improving advertising platforms. Management expressed optimism about future growth, while also acknowledging risks related to user engagement, competition, and the ongoing shift to mobile monetization.
02—Key points
Key Highlights
- Achieved 1.06 billion monthly active users (MAUs) as of December 31, 2012, a 25% increase year-over-year.
- Grew daily active users (DAUs) to an average of 618 million in December 2012, a 28% increase.
- Significant mobile growth with 680 million mobile MAUs, up 57% year-over-year.
- Revenue increased by 37% to $5.09 billion, primarily driven by advertising.
- Acquired Instagram in August 2012 to enhance photo-sharing capabilities.
- Recognized a substantial increase in share-based compensation expenses ($1.57 billion) impacting net income.
- Prioritized mobile product development and monetization as a key strategic focus.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, Meta Platforms, Inc. kept $0.01.
- Revenue$5.09B100.0%
- Cost of revenue−$1.36B26.8%
- Gross profit$3.73B73.2%
- Operating costs−$3.19B62.6%
- Operating income$538.0M10.6%
- Interest, other & tax−$485.0M9.5%
- Net income$53.0M1.0%
Where FY2012 revenue went
$5.09B- Other operating costs: $1.79B, 35% of revenue
- R&D: $1.40B, 27% of revenue
- Cost of revenue: $1.36B, 27% of revenue
- Net income: $53.0M, 1.0% of revenue
- Interest, other & tax: $485.0M, 9.5% of revenue
Kept 1.0% as net incomeNet income $53.0M · 1.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed February 1, 2013Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $5.09B$3.71B | +37.1% |
| Cost of Revenue | $1.36B$860.00M | +58.6% |
| Gross Profit | $3.73B$2.85B | +30.7% |
| R&D Expenses | $1.40B$388.00M | +260.6% |
| Operating Expenses | $4.55B$1.96B | +132.8% |
| Operating Income | $538.00M$1.76B | −69.4% |
| Interest Expense | $51.00M$42.00M | +21.4% |
| Net Income | $53.00M$1.00B | −94.7% |
| EPS (Basic) | $0.02$0.52 | −96.2% |
| EPS (Diluted) | $0.01$0.46 | −97.8% |
| Shares Outstanding (Basic) | 2.01B1.29B | +55.0% |
| Shares Outstanding (Diluted) | 2.17B1.51B | +43.6% |
05—Questions
Frequently Asked Questions
What was Meta's user growth in 2012?
In 2012, Meta Platforms (Facebook) experienced substantial user growth, reaching 1.06 billion monthly active users (MAUs), a 25% increase from the previous year, and an average of 618 million daily active users (DAUs), up 28%. Mobile user growth was particularly strong, with 680 million mobile MAUs, representing a 57% increase.
How did Meta's financial performance fare in 2012?
In 2012, Meta generated $5.09 billion in revenue, a 37% increase driven mainly by advertising. However, net income decreased significantly to $53 million from $1 billion in 2011. This reduction was primarily attributed to a substantial increase in share-based compensation expenses, largely due to the vesting of Restricted Stock Units (RSUs) triggered by the company's IPO in May 2012.
What were the key strategic initiatives mentioned in the filing?
Meta's strategic priorities included expanding its global user community, building engaging social products to enhance user experience, making mobile products easily available and engaging, enabling developers through the Facebook Platform, improving ad products for marketers and users, and building a scalable infrastructure. The acquisition of Instagram in August 2012 was a key move to bolster its mobile and photo-sharing offerings.
06—Continue