10-QPeriod: Q2 FY2021

Meta Platforms, Inc. Quarterly Report for Q2 Ended Jun 30, 2021

Filed July 29, 2021For Securities:META

Summary

Meta Platforms, Inc. (META) reported strong financial performance for the second quarter and first half of 2021, with significant year-over-year growth in revenue and net income. Total revenue for the three months ended June 30, 2021, reached $29.08 billion, a 56% increase, primarily driven by a 56% surge in advertising revenue. Net income also saw a substantial rise to $10.39 billion, resulting in diluted EPS of $3.61. The company continued to expand its user base, with Family Daily Active People (DAP) reaching 2.76 billion, up 12% year-over-year, and Family Monthly Active People (MAP) growing to 3.51 billion, also a 12% increase. Despite robust revenue growth, total costs and expenses also increased by 31% to $16.71 billion, largely due to investments in research and development and cost of revenue. The company ended the period with a strong cash and cash equivalents and marketable securities position of $64.08 billion, reflecting healthy operational cash flow generation. Significant capital expenditures and substantial share repurchases were noted, highlighting ongoing investments and capital return to shareholders.

Financial Highlights

47 data points
Beta

Revenue

$29.08B

81.4% Gross Margin

Net Income

$10.39B

35.7% Net Margin

EPS (Diluted)

$3.61

Total Assets

$170.61B

Cash & Equivalents

$16.19B

Free Cash Flow

$8.61B

Financial Statements
Beta
Revenue$29.08B
Cost of Revenue$5.40B
Gross Profit$23.68B
R&D Expenses$6.10B
Operating Expenses$16.71B
Operating Income$12.37B
Net Income$10.39B
EPS (Basic)$3.67
EPS (Diluted)$3.61
Shares Outstanding (Basic)2.83B
Shares Outstanding (Diluted)2.88B

Key Highlights

  • 1Revenue increased by 56% year-over-year to $29.08 billion for the three months ended June 30, 2021, driven by a 56% increase in advertising revenue.
  • 2Net income grew significantly to $10.39 billion, with diluted earnings per share (EPS) of $3.61 for the same period.
  • 3Family Daily Active People (DAP) reached 2.76 billion, a 12% year-over-year increase, and Family Monthly Active People (MAP) reached 3.51 billion, also a 12% increase.
  • 4Operating income was $12.37 billion, with an operating margin of 43%.
  • 5Total costs and expenses increased by 31% year-over-year to $16.71 billion, reflecting increased investment in R&D and infrastructure.
  • 6Cash and cash equivalents and marketable securities stood at $64.08 billion as of June 30, 2021, indicating a strong liquidity position.
  • 7The company repurchased $11.26 billion of Class A common stock in the first six months of 2021 under its share repurchase program.

Frequently Asked Questions

Meta Platforms, Inc. reported a significant revenue increase of 56% year-over-year, reaching $29.08 billion for the three months ended June 30, 2021. This growth was primarily driven by a 56% increase in advertising revenue.

User engagement remained strong, with Family Daily Active People (DAP) growing 12% year-over-year to 2.76 billion and Family Monthly Active People (MAP) also growing 12% year-over-year to 3.51 billion as of June 30, 2021.

Meta Platforms, Inc. maintained a strong liquidity position, with cash and cash equivalents and marketable securities totaling $64.08 billion as of June 30, 2021.

Total costs and expenses increased by 31% year-over-year to $16.71 billion for the three months ended June 30, 2021. This increase was primarily attributed to higher expenses in cost of revenue and research and development, reflecting ongoing investments in the company's infrastructure and product development.