Summary
This 10-Q filing for Meta Platforms, Inc. (formerly Facebook, Inc.) for the period ending March 31, 2015, highlights strong revenue growth driven primarily by advertising, with a significant shift towards mobile. The company reported total revenue of $3.54 billion, a 42% increase year-over-year. While user engagement continues to grow, particularly on mobile devices, the company is experiencing a decline in desktop usage. Investments in research and development and marketing & sales have increased substantially, impacting net income which saw a decrease compared to the prior year period. The balance sheet shows a healthy liquidity position with $12.41 billion in cash and marketable securities. The company is making significant capital expenditures, particularly on data centers and infrastructure, and is actively pursuing strategic acquisitions. Despite the increased operating expenses and a higher effective tax rate, the company expresses confidence in its ability to meet future operational needs. Investors should note the ongoing litigation and the inherent risks associated with rapid growth, competition, and evolving regulatory landscapes.
Financial Highlights
48 data points| Revenue | $3.54B |
| Cost of Revenue | $654.00M |
| Gross Profit | $2.89B |
| R&D Expenses | $1.06B |
| Operating Expenses | $2.61B |
| Operating Income | $933.00M |
| Net Income | $512.00M |
| EPS (Basic) | $0.18 |
| EPS (Diluted) | $0.18 |
| Shares Outstanding (Basic) | 2.78B |
| Shares Outstanding (Diluted) | 2.84B |
Key Highlights
- 1Total revenue increased by 42% year-over-year to $3.54 billion, primarily driven by a 46% increase in advertising revenue.
- 2Mobile advertising revenue now represents 73% of total advertising revenue, up from 59% in the prior year, reflecting a strong shift to mobile platforms.
- 3Daily Active Users (DAUs) grew 17% to 936 million, with mobile DAUs up 31% to 798 million, indicating continued user engagement, especially on mobile.
- 4Research and development expenses surged by 133% to $1.06 billion, largely due to a significant increase in share-based compensation and employee headcount growth.
- 5The company holds a robust liquidity position with $12.41 billion in cash and marketable securities as of March 31, 2015.
- 6Capital expenditures are substantial, with anticipated spending of $2.7 billion to $3.2 billion for 2015, focused on infrastructure and data centers.
- 7Net income decreased by 20% to $512 million from $642 million in the prior year, impacted by increased operating expenses, particularly in R&D and marketing.