Summary
Meta Platforms, Inc. (META) reported its third-quarter 2012 financial results, showing continued revenue growth but a notable net loss for the quarter. Revenue increased by 32% year-over-year to $1.26 billion, driven by a strong performance in advertising, which saw a 36% increase. This growth was largely fueled by a 27% rise in the number of ads delivered, attributed to user growth and product improvements. However, total costs and expenses outpaced revenue growth, leading to a net loss of $59 million for the quarter, compared to a net income of $227 million in the prior year. A significant factor contributing to the increased expenses and the net loss was a substantial rise in share-based compensation expenses, particularly related to Restricted Stock Units (RSUs) triggered by the company's IPO in May 2012. Additionally, the company's effective tax rate in the third quarter exceeded 100%, further contributing to the net loss despite positive income before taxes. Despite the quarterly loss, Meta Platforms demonstrated robust user growth, with Monthly Active Users (MAUs) reaching 1.01 billion, a 26% increase year-over-year. Mobile usage continued its upward trend, with mobile MAUs growing 61% to 604 million. The company also made strategic acquisitions, including Instagram for $521 million, to enhance its product offerings and user engagement, particularly in the mobile space. The company ended the quarter with a strong liquidity position, with $10.5 billion in cash and cash equivalents and marketable securities.
Financial Highlights
50 data points| Revenue | $1.26B |
| Cost of Revenue | $322.00M |
| Gross Profit | $940.00M |
| R&D Expenses | $244.00M |
| Operating Expenses | $885.00M |
| Operating Income | $377.00M |
| Interest Expense | $11.00M |
| Net Income | -$59.00M |
| EPS (Basic) | $-0.02 |
| EPS (Diluted) | $-0.02 |
| Shares Outstanding (Basic) | 2.42B |
| Shares Outstanding (Diluted) | 2.42B |
Key Highlights
- 1Revenue grew 32% year-over-year to $1.26 billion, driven by a 36% increase in advertising revenue due to higher ad delivery volume and a modest price increase.
- 2Reported a net loss of $59 million for the quarter, a significant decline from a net income of $227 million in the same period last year, primarily due to increased operating expenses, especially share-based compensation.
- 3Monthly Active Users (MAUs) reached 1.01 billion, representing 26% year-over-year growth.
- 4Mobile MAUs saw substantial growth of 61% year-over-year, reaching 604 million, highlighting the shift towards mobile engagement.
- 5Completed the acquisition of Instagram for $521 million in August 2012 to enhance photo sharing and mobile engagement.
- 6Ended the quarter with $10.5 billion in cash and cash equivalents and marketable securities, indicating a strong liquidity position.
- 7The effective tax rate in the third quarter of 2012 was 116%, significantly higher than the 40% in the prior year, contributing to the net loss.