Summary
Meta Platforms, Inc. (formerly Facebook, Inc.) reported robust financial performance for the third quarter and first nine months of 2015, demonstrating strong revenue growth driven primarily by its advertising business. The company saw a significant increase in total revenue, up 41% year-over-year for the quarter, fueled by a 45% surge in advertising revenue. This growth was predominantly attributed to the increasing adoption of mobile advertising, which represented approximately 78% of total advertising revenue in Q3 2015. User engagement also remained strong, with daily and monthly active users growing by 17% and 14% year-over-year, respectively, largely driven by mobile usage. Despite increasing investments in research and development, marketing, and general administrative expenses, the company maintained healthy profitability, with net income increasing year-over-year. Meta Platforms continued to strategically invest in future growth areas, including next-generation services like Instagram, WhatsApp, and Messenger, as well as long-term innovation projects such as Internet.org and Oculus. While these investments are expected to drive significant expense growth, the company's strong cash generation and substantial cash and marketable securities balance provide a solid foundation for continued investment and operational needs. The company maintains a strong balance sheet with a considerable increase in cash and marketable securities, underscoring its financial stability and capacity for future endeavors.
Financial Highlights
48 data points| Revenue | $4.50B |
| Cost of Revenue | $720.00M |
| Gross Profit | $3.78B |
| R&D Expenses | $1.27B |
| Operating Expenses | $3.04B |
| Operating Income | $1.46B |
| Net Income | $896.00M |
| EPS (Basic) | $0.32 |
| EPS (Diluted) | $0.31 |
| Shares Outstanding (Basic) | 2.81B |
| Shares Outstanding (Diluted) | 2.86B |
Key Highlights
- 1Total revenue for the third quarter of 2015 reached $4.50 billion, a 41% increase year-over-year, primarily driven by a 45% surge in advertising revenue.
- 2Mobile advertising revenue represented approximately 78% of total advertising revenue in Q3 2015, highlighting the company's successful shift to mobile monetization.
- 3Daily Active Users (DAUs) grew by 17% year-over-year to 1.01 billion in September 2015, with mobile DAUs increasing by 27%, demonstrating continued user engagement and growth.
- 4Monthly Active Users (MAUs) reached 1.55 billion as of September 30, 2015, a 14% increase year-over-year, with mobile MAUs showing a 23% increase.
- 5Research and development expenses significantly increased by 109% year-over-year in Q3 2015 to $1.27 billion, reflecting substantial investment in future products and services.
- 6The company held $15.83 billion in cash and cash equivalents and marketable securities as of September 30, 2015, indicating strong liquidity.
- 7Net income for the third quarter was $896 million, an increase from $806 million in the prior year's quarter, with diluted EPS at $0.31.