Meta Platforms, Inc. Quarterly Report for Q2 Ended Jun 30, 2020

Summary

Meta Platforms, Inc. (META) reported solid financial results for the second quarter of 2020, demonstrating resilience despite the evolving economic landscape influenced by the COVID-19 pandemic. The company saw significant growth in its user base across its family of products, with daily active users (DAUs) reaching 1.79 billion and monthly active users (MAUs) at 2.70 billion, reflecting an 11% and 14% year-over-year increase, respectively. Revenue for the quarter rose by 11% to $18.69 billion, driven primarily by advertising revenue, which grew 10% to $18.32 billion. Despite increased investments in research and development and marketing, the company maintained a strong operating margin of 32%, contributing to a net income of $5.18 billion and diluted earnings per share of $1.80. The company highlighted continued investment in its core priorities: supporting marketers, fostering user connections, and addressing major social issues like privacy and safety. Meta also reported substantial cash reserves and continued capital expenditures, underscoring its commitment to long-term growth and infrastructure development. While the pandemic presented advertising demand challenges, Meta's diversified user base and strategic investments position it for continued engagement and growth.

Key Highlights

• 1Revenue increased 11% year-over-year to $18.69 billion in Q2 2020.
• 2Facebook DAUs grew 12% year-over-year to 1.79 billion, and MAUs grew 12% to 2.70 billion.
• 3Family daily active people (DAP) increased 15% year-over-year to 2.47 billion.
• 4Net income was $5.18 billion, with diluted EPS of $1.80.
• 5Operating margin remained strong at 32%.
• 6Capital expenditures for the six months ended June 30, 2020, were $6.81 billion.
• 7The company held $58.24 billion in cash and cash equivalents and marketable securities as of June 30, 2020.

Frequently Asked Questions