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| 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.