01—Abstract
Summary
Summary of the 10-K/A filed February 13, 2015. Cited figures are marked; the original filing is the authoritative source.
This 10-K filing for Meta Platforms, Inc. (formerly Facebook, Inc.) for the fiscal year ended December 30, 2014, offers investors a snapshot of the company's financial position and performance as it continued its growth trajectory following its IPO.
The report details the company's robust revenue growth, primarily driven by its social networking platforms and the increasing monetization of its user base. Investors should pay close attention to the company's investments in growth initiatives and potential future acquisitions, which are crucial for sustained expansion in the rapidly evolving digital landscape. While the company demonstrated strong operational performance, the filing also implicitly points to the ongoing investments required to maintain its competitive edge and explore new avenues for growth beyond its core advertising business.
Key financial metrics highlight the company's increasing profitability and strong cash flow generation, underscoring its ability to fund future development and strategic opportunities. The expansion of its user base across its various platforms (Facebook, Instagram, etc.) continues to be a critical driver of its business model.
Investors should consider the company's ability to effectively leverage this user engagement into continued revenue growth and diversification. The filing serves as a foundational document for understanding the financial health and strategic direction of Meta Platforms at a pivotal stage of its development, as it looked towards further innovation and market expansion.
02—Key points
Key Highlights
- Company achieved significant revenue growth for the fiscal year 2014, driven by its core social networking operations and advertising business.
- Demonstrated strong profitability and positive cash flow generation, indicating a healthy financial position.
- Continued expansion of user base across its platforms (Facebook, Instagram, etc.) remains a key driver of business performance.
- The report signifies substantial investments in growth initiatives and research and development to fuel future innovation and market expansion.
- The company's financial statements are audited by an independent registered public accounting firm, providing assurance on the accuracy of the reported figures.
- All required financial statements, including Balance Sheets, Income Statements, and Cash Flow Statements, are included and available for investor review.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2014, Meta Platforms, Inc. kept $0.24.
- Revenue$12.47B100.0%
- Cost of revenue−$2.15B17.3%
- Gross profit$10.31B82.7%
- Operating costs−$5.32B42.7%
- Operating income$4.99B40.1%
- Interest, other & tax−$2.05B16.5%
- Net income$2.94B23.6%
Where FY2014 revenue went
$12.47B- Net income: $2.94B, 24% of revenue
- R&D: $2.67B, 21% of revenue
- Other operating costs: $2.65B, 21% of revenue
- Cost of revenue: $2.15B, 17% of revenue
- Interest, other & tax: $2.05B, 16% of revenue
Kept 24% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2014filed February 13, 2015Financial Statements
FY2014 against FY2013
| Line item | FY2014FY2013 | Change |
|---|---|---|
| Revenue | $12.47B$7.87B | +58.4% |
| Cost of Revenue | $2.15B$1.88B | +14.8% |
| Gross Profit | $10.31B$6.00B | +72.0% |
| R&D Expenses | $2.67B$1.42B | +88.4% |
| Operating Expenses | $7.47B$5.07B | +47.4% |
| Operating Income | $4.99B$2.80B | +78.1% |
| Interest Expense | $23.00M$56.00M | −58.9% |
| Net Income | $2.94B$1.50B | +96.0% |
| EPS (Basic) | $1.12$0.62 | +80.6% |
| EPS (Diluted) | $1.10$0.60 | +83.3% |
| Shares Outstanding (Basic) | 2.61B2.42B | +8.0% |
| Shares Outstanding (Diluted) | 2.66B2.52B | +5.8% |
05—Questions
Frequently Asked Questions
What was Meta Platforms' primary revenue source in 2014?
Meta Platforms' primary revenue source in 2014 was its advertising business, driven by user engagement on its social networking platforms like Facebook and Instagram.
Did the company show strong financial performance in 2014?
Yes, the filing indicates that the company achieved significant revenue growth and demonstrated strong profitability along with positive cash flow generation in 2014.
What are the key areas of investment for Meta Platforms mentioned or implied in the filing?
The filing implies that Meta Platforms was making substantial investments in growth initiatives, research and development, and potentially exploring strategic acquisitions to maintain its competitive edge and drive future innovation.
What does the inclusion of the 'Reports of Independent Registered Public Accounting Firm' signify?
This signifies that the company's consolidated financial statements have been audited by an independent accounting firm, which provides investors with an external validation of the reported financial information's accuracy and fairness.
06—Continue