Summary
Meta Platforms, Inc. (META) reported strong financial results for the third quarter and first nine months of 2021. Revenue saw a significant increase of 35% year-over-year for the quarter, reaching $29.01 billion, primarily driven by a 33% rise in advertising revenue. Net income also grew to $9.19 billion for the quarter, with diluted EPS at $3.22. The company demonstrated robust user growth across its family of products, with Family Daily Active People (DAP) up 11% and Monthly Active People (MAP) up 12% year-over-year. Despite strong top-line performance, total costs and expenses increased by 38% year-over-year for the quarter, impacting operating margin. The company continues to invest heavily in research and development and infrastructure, reflecting its long-term growth strategy. Meta also announced a significant share repurchase authorization, indicating confidence in its financial position and commitment to returning value to shareholders. However, the company noted that future advertising revenue growth could be adversely affected by limitations on ad targeting and measurement tools due to changes in mobile operating systems and the regulatory environment.
Financial Highlights
48 data points| Revenue | $29.01B |
| Cost of Revenue | $5.77B |
| Gross Profit | $23.24B |
| R&D Expenses | $6.32B |
| Operating Expenses | $18.59B |
| Operating Income | $10.42B |
| Net Income | $9.19B |
| EPS (Basic) | $3.27 |
| EPS (Diluted) | $3.22 |
| Shares Outstanding (Basic) | 2.81B |
| Shares Outstanding (Diluted) | 2.86B |
Key Highlights
- 1Revenue increased by 35% year-over-year to $29.01 billion in Q3 2021, driven by a 33% rise in advertising revenue.
- 2Net income for Q3 2021 was $9.19 billion, a substantial increase from the prior year's period.
- 3Family Daily Active People (DAP) grew 11% year-over-year to 2.81 billion, and Family Monthly Active People (MAP) grew 12% to 3.58 billion, indicating strong user engagement across Meta's platforms.
- 4Total costs and expenses increased by 38% year-over-year to $18.59 billion in Q3 2021, impacting operating margin.
- 5Capital expenditures for the nine months ended September 30, 2021, were $13.20 billion, reflecting ongoing investment in infrastructure.
- 6The company repurchased $25.63 billion of its Class A common stock during the nine months ended September 30, 2021.
- 7Meta anticipates future advertising revenue growth may be impacted by changes to iOS 14 and other regulatory environments affecting ad targeting and measurement.