Meta Platforms, Inc. Quarterly Report for Q3 Ended Sep 30, 2018

Summary

Meta Platforms, Inc. (META) reported strong financial performance for the third quarter of 2018, with revenue reaching $13.73 billion, a 33% increase year-over-year, driven primarily by advertising revenue. Net income stood at $5.14 billion, resulting in diluted earnings per share of $1.76. The company continued its aggressive investment in long-term initiatives, including safety and security, scaling headcount, and expanding data center capacity, which led to total costs and expenses of $7.95 billion. Despite increased expenses, the company maintains a robust financial position with $41.21 billion in cash and cash equivalents and marketable securities as of September 30, 2018. Investors should note the ongoing legal and regulatory scrutiny related to user data practices and a recent cyber-attack, which are significant contingent liabilities for the company.

Key Highlights

• 1Revenue grew 33% year-over-year to $13.73 billion, with advertising revenue up 33% to $13.54 billion.
• 2Net income was $5.14 billion, and diluted EPS was $1.76.
• 3Daily Active Users (DAUs) increased by 9% to 1.49 billion, and Monthly Active Users (MAUs) grew by 10% to 2.27 billion.
• 4The company continued significant investments in infrastructure and headcount, with capital expenditures of $3.34 billion in Q3 and a 45% year-over-year increase in headcount.
• 5Cash and cash equivalents and marketable securities totaled $41.21 billion.
• 6The company repurchased approximately $9.38 billion of Class A common stock in the first nine months of 2018.
• 7Ongoing legal proceedings and government inquiries related to data privacy and a recent cyber-attack represent significant contingent liabilities.

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