Summary
Meta Platforms, Inc. (META) reported strong financial performance for the nine months ended September 30, 2014. Revenue grew by 63% to $8.62 billion, driven primarily by a 70% increase in advertising revenue. Net income also saw significant growth, reaching $2.24 billion, up from $977 million in the prior year period. The company demonstrated robust user growth, with Daily Active Users (DAUs) increasing by 19% year-over-year to 864 million and Monthly Active Users (MAUs) growing 14% to 1.35 billion. Mobile usage continues to be a key driver, with mobile DAUs up 39% and mobile MAUs up 29%. The company's balance sheet reflects substantial growth in cash and equivalents, which increased to $8.999 billion from $3.323 billion at the end of 2013, bolstered by strong operational cash flow and excess tax benefits from stock awards. Investing activities included significant capital expenditures for infrastructure and strategic acquisitions, notably Oculus VR. Subsequent to the quarter, Meta announced the significant acquisition of WhatsApp for $17.19 billion, indicating a continued aggressive growth and acquisition strategy.
Financial Highlights
49 data points| Revenue | $3.20B |
| Cost of Revenue | $565.00M |
| Gross Profit | $2.64B |
| R&D Expenses | $608.00M |
| Operating Expenses | $1.81B |
| Operating Income | $1.40B |
| Net Income | $806.00M |
| EPS (Basic) | $0.31 |
| EPS (Diluted) | $0.30 |
| Shares Outstanding (Basic) | 2.59B |
| Shares Outstanding (Diluted) | 2.64B |
Key Highlights
- 1Revenue surged 63% to $8.62 billion for the nine months ended September 30, 2014, driven by a 70% increase in advertising revenue.
- 2Net income more than doubled to $2.24 billion compared to $977 million in the same period last year.
- 3Worldwide DAUs grew 19% to 864 million, and MAUs increased 14% to 1.35 billion, with mobile usage being a key growth driver.
- 4Cash and cash equivalents and marketable securities increased significantly to $14.25 billion, indicating strong liquidity.
- 5The company made significant strategic investments, including the acquisition of Oculus VR and announced the acquisition of WhatsApp for $17.19 billion.
- 6Operating expenses increased due to growth in headcount and investment in R&D, sales, and marketing.
- 7Average Revenue Per User (ARPU) increased 40% year-over-year in the third quarter, though growth is expected to be slower in regions with lower ARPU.