10-QPeriod: Q1 FY2021

Meta Platforms, Inc. Quarterly Report for Q1 Ended Mar 31, 2021

Filed April 29, 2021For Securities:META

Summary

Meta Platforms, Inc. (META) reported strong financial performance for the first quarter of 2021, demonstrating significant year-over-year growth. Revenue surged by 48% to $26.17 billion, primarily driven by a 46% increase in advertising revenue, which benefited from a recovery in advertising demand and an acceleration of online commerce trends. Despite a 25% increase in total costs and expenses, the company maintained a robust operating margin of 43% and reported a net income of $9.50 billion, resulting in diluted earnings per share of $3.30. User growth remained solid across its platforms, with Facebook DAUs up 8% and Family DAUs up 15% year-over-year, indicating continued engagement. The company continued to invest heavily in its infrastructure and headcount, with capital expenditures of $4.42 billion and a 26% increase in headcount year-over-year. The strong cash flow generation allowed for substantial share repurchases, demonstrating a commitment to returning capital to shareholders. Despite ongoing legal and regulatory challenges, particularly concerning antitrust investigations and data privacy, Meta Platforms presented a financially robust quarter.

Financial Highlights

47 data points
Beta

Revenue

$26.17B

80.4% Gross Margin

Net Income

$9.50B

36.3% Net Margin

EPS (Diluted)

$3.30

Total Assets

$163.52B

Cash & Equivalents

$19.51B

Free Cash Flow

$7.94B

Financial Statements
Beta
Revenue$26.17B
Cost of Revenue$5.13B
Gross Profit$21.04B
R&D Expenses$5.20B
Operating Expenses$14.79B
Operating Income$11.38B
Net Income$9.50B
EPS (Basic)$3.34
EPS (Diluted)$3.30
Shares Outstanding (Basic)2.85B
Shares Outstanding (Diluted)2.88B

Key Highlights

  • 1Revenue increased by 48% year-over-year to $26.17 billion, with advertising revenue growing 46% to $25.44 billion.
  • 2Net income reached $9.50 billion, a substantial increase from $4.90 billion in the prior year's comparable period.
  • 3Diluted earnings per share (EPS) were $3.30, significantly higher than $1.71 in Q1 2020.
  • 4Facebook Daily Active Users (DAUs) grew 8% year-over-year to 1.88 billion, and Family Daily Active People (DAP) increased 15% to 2.72 billion.
  • 5Operating margin remained strong at 43%, with income from operations at $11.38 billion.
  • 6Capital expenditures totaled $4.42 billion, reflecting continued investment in infrastructure.
  • 7Cash and cash equivalents and marketable securities stood at $64.22 billion, providing significant liquidity.

Frequently Asked Questions

Meta's revenue growth was primarily driven by a significant increase in advertising revenue, which rose 46% year-over-year. This growth was attributed to a recovery in advertising demand, partly due to the COVID-19 pandemic accelerating shifts to online commerce, and an increase in the average price per ad.

User engagement remained strong. Facebook Daily Active Users (DAUs) increased by 8% year-over-year to 1.88 billion. Across its family of apps (Facebook, Instagram, Messenger, WhatsApp), Daily Active People (DAP) grew by 15% year-over-year to 2.72 billion.

Meta continues to invest heavily in its business, with capital expenditures of $4.42 billion in the quarter, primarily focused on data center capacity, servers, and network infrastructure. Headcount also increased by 26% year-over-year. While total costs and expenses increased by 25%, the company maintained a strong operating margin, indicating effective cost management relative to revenue growth.

Yes, the filing details ongoing legal proceedings, including antitrust investigations by the FTC and state attorneys general concerning acquisitions like Instagram and WhatsApp, and privacy-related lawsuits such as the Illinois Biometric Information Privacy Act case. The company also faces ongoing inquiries from various government and regulatory bodies globally. While Meta is vigorously defending itself, these matters represent potential risks and could lead to substantial costs or require changes to business practices.