Summary
Meta Platforms, Inc. (META) reported strong financial performance for the nine months ended September 30, 2013. Revenue saw a significant increase of 51% year-over-year, reaching $5.286 billion, driven primarily by a 57% surge in advertising revenue. This growth was fueled by increased ad delivery and higher prices per ad, especially from News Feed ads on mobile devices. The company demonstrated a return to profitability, with net income of $977 million for the first nine months of 2013, a significant improvement from a net loss of $11 million in the prior year period. This financial strength is supported by robust user growth, with Monthly Active Users (MAUs) reaching 1.19 billion, a 18% increase, and mobile MAUs growing by an impressive 45% to 874 million. Operationally, the company is investing heavily in its infrastructure, as evidenced by a 43% increase in cost of revenue, largely due to data center expansion, and a 51% increase in R&D expenses for the third quarter, reflecting investments in product development. Despite these investments, operating income grew significantly, and the company ended the period with a healthy $3.1 billion in cash and cash equivalents. Management anticipates available funds and cash flow from operations will be sufficient for future needs. However, investors should note ongoing litigation related to the IPO and potential risks associated with competition and evolving regulatory environments.
Financial Highlights
52 data points| Revenue | $2.02B |
| Cost of Revenue | $507.00M |
| Gross Profit | $1.51B |
| R&D Expenses | $369.00M |
| Operating Expenses | $1.28B |
| Operating Income | $736.00M |
| Interest Expense | $21.00M |
| Net Income | $425.00M |
| EPS (Basic) | $0.17 |
| EPS (Diluted) | $0.17 |
| Shares Outstanding (Basic) | 2.43B |
| Shares Outstanding (Diluted) | 2.53B |
Key Highlights
- 1Revenue increased by 51% year-over-year to $5.286 billion for the nine months ended September 30, 2013.
- 2Advertising revenue, the primary revenue driver, grew by 57% year-over-year due to increased ad delivery and higher pricing, with a significant contribution from mobile News Feed ads.
- 3The company returned to profitability, reporting a net income of $977 million for the nine months ended September 30, 2013, compared to a net loss of $11 million in the same period of 2012.
- 4Monthly Active Users (MAUs) grew 18% year-over-year to 1.19 billion as of September 30, 2013.
- 5Mobile MAUs experienced substantial growth of 45% year-over-year, reaching 874 million.
- 6The company ended the period with $3.1 billion in cash and cash equivalents, demonstrating strong liquidity.
- 7Significant investments in infrastructure (cost of revenue up 43%) and research and development (R&D up 51% in Q3) are ongoing.