MENLO
PARK, Calif., July 31,
2024 /PRNewswire/ -- Meta Platforms, Inc. (Nasdaq:
META) today reported financial results for the quarter ended
June 30, 2024.
"We had a strong quarter, and Meta AI is on track to be the most
used AI assistant in the world by the end of the year," said
Mark Zuckerberg, Meta founder and
CEO. "We've released the first frontier-level open source AI model,
we continue to see good traction with our Ray-Ban Meta AI
glasses, and we're driving good growth across our apps."
Second Quarter 2024 Financial
Highlights
|
Three Months Ended
June 30,
|
|
%
Change
|
|
In millions, except
percentages and per share amounts
|
2024
|
|
2023
|
|
|
Revenue
|
$
39,071
|
|
$
31,999
|
|
22 %
|
|
Costs and
expenses
|
24,224
|
|
22,607
|
|
7 %
|
|
Income from
operations
|
$
14,847
|
|
$
9,392
|
|
58 %
|
|
Operating
margin
|
38 %
|
|
29 %
|
|
|
|
Provision for income
taxes
|
$
1,641
|
|
$
1,505
|
|
9 %
|
|
Effective tax
rate
|
11 %
|
|
16 %
|
|
|
|
Net income
|
$
13,465
|
|
$
7,788
|
|
73 %
|
|
Diluted earnings per
share (EPS)
|
$
5.16
|
|
$
2.98
|
|
73 %
|
Second Quarter 2024 Operational and Other
Financial Highlights
- Family daily active people (DAP) – DAP was 3.27 billion
on average for June 2024, an increase
of 7% year-over-year.
- Ad impressions – Ad impressions delivered across our
Family of Apps increased by 10% year-over-year.
- Average price per ad – Average price per ad increased by
10% year-over-year.
- Revenue – Total revenue was $39.07 billion, an increase of 22%
year-over-year. Revenue on a constant currency basis would have
increased 23% year-over-year.
- Costs and expenses – Total costs and expenses were
$24.22 billion, an increase of 7%
year-over-year.
- Capital expenditures – Capital expenditures, including
principal payments on finance leases, were $8.47 billion.
- Capital return program – Share repurchases were
$6.32 billion of our Class A common
stock and dividend payments were $1.27
billion.
- Cash, cash equivalents, and marketable securities –
Cash, cash equivalents, and marketable securities were $58.08 billion as of June
30, 2024. Free cash flow was $10.90
billion.
- Headcount – Headcount was 70,799 as of June 30, 2024, a decrease of 1%
year-over-year.
CFO Outlook Commentary
We expect third quarter 2024 total revenue to be in the range of
$38.5-41 billion. Our guidance
assumes foreign currency is a 2% headwind to year-over-year total
revenue growth, based on current exchange rates.
We expect full-year 2024 total expenses to be in the range of
$96-99 billion, unchanged from our
prior outlook. For Reality Labs, we continue to expect 2024
operating losses to increase meaningfully year-over-year due to our
ongoing product development efforts and investments to further
scale our ecosystem.
While we do not intend to provide any quantitative guidance for
2025 until the fourth quarter call, we expect infrastructure costs
will be a significant driver of expense growth next year as we
recognize depreciation and operating costs associated with our
expanded infrastructure footprint.
We anticipate our full-year 2024 capital expenditures will be in
the range of $37-40 billion, updated
from our prior range of $35-40
billion. While we continue to refine our plans for next year, we
currently expect significant capital expenditures growth in 2025 as
we invest to support our artificial intelligence research and
product development efforts.
Absent any changes to our tax landscape, we expect our full-year
2024 tax rate to be in the mid-teens.
In addition, we continue to monitor an active regulatory
landscape, including the increasing legal and regulatory headwinds
in the EU and the U.S. that could significantly impact our business
and our financial results.
Webcast and Conference Call Information
Meta will host a conference call to discuss the results at
2:00 p.m. PT / 5:00 p.m. ET today. The live webcast of Meta's
earnings conference call can be accessed at the Meta Investor
Relations website at investor.fb.com, along with the earnings press
release, financial tables, and slide presentation.
Following the call, a replay will be available at the same
website. Transcripts of conference calls with publishing equity
research analysts held today will also be posted to the
investor.fb.com website.
Disclosure Information
Meta uses the investor.fb.com and about.fb.com/news/
websites as well as Mark
Zuckerberg's Facebook Page (facebook.com/zuck), Instagram
account (instagram.com/zuck) and Threads profile (threads.net/zuck)
as means of disclosing material non-public information and for
complying with its disclosure obligations under Regulation FD.
About Meta
Meta builds technologies that help people connect, find
communities, and grow businesses. When Facebook launched in 2004,
it changed the way people connect. Apps like Messenger, Instagram,
and WhatsApp further empowered billions around the world. Now, Meta
is moving beyond 2D screens toward immersive experiences like
augmented and virtual reality to help build the next evolution in
social technology.
Contacts
Investors:
Kenneth Dorell
investor@meta.com / investor.fb.com
Press:
Ryan Moore
press@meta.com / about.fb.com/news/
Forward-Looking Statements
This press release contains forward-looking statements regarding
our future business plans and expectations. These forward-looking
statements are only predictions and may differ materially from
actual results due to a variety of factors including: the impact of
macroeconomic conditions on our business and financial results,
including as a result of geopolitical events; our ability to retain
or increase users and engagement levels; our reliance on
advertising revenue; our dependency on data signals and mobile
operating systems, networks, and standards that we do not control;
changes to the content or application of third-party policies that
impact our advertising practices; risks associated with new
products and changes to existing products as well as other new
business initiatives, including our artificial intelligence
initiatives and metaverse efforts; our emphasis on community growth
and engagement and the user experience over short-term financial
results; maintaining and enhancing our brand and reputation; our
ongoing privacy, safety, security, and content review efforts;
competition; risks associated with government actions that could
restrict access to our products or impair our ability to sell
advertising in certain countries; litigation and government
inquiries; privacy, legislative, and regulatory concerns or
developments; risks associated with acquisitions; security
breaches; our ability to manage our scale and
geographically-dispersed operations; and market conditions or other
factors affecting the payment of dividends. These and other
potential risks and uncertainties that could cause actual results
to differ from the results predicted are more fully detailed under
the caption "Risk Factors" in our Quarterly Report on Form 10-Q
filed with the SEC on April 25, 2024, which is available
on our Investor Relations website at investor.fb.com and on the SEC
website at www.sec.gov. Additional information will also be set
forth in our Quarterly Report on Form 10-Q for the quarter ended
June 30, 2024. In addition, please note that the date of this
press release is July 31, 2024, and any forward-looking
statements contained herein are based on assumptions that we
believe to be reasonable as of this date. We undertake no
obligation to update these statements as a result of new
information or future events.
For a discussion of limitations in the measurement of certain of
our community metrics, see the section entitled "Limitations of Key
Metrics and Other Data" in our most recent quarterly or annual
report filed with the SEC.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements,
which are prepared and presented in accordance with generally
accepted accounting principles in the
United States (GAAP), we use the following non-GAAP
financial measures: revenue excluding foreign exchange effect,
advertising revenue excluding foreign exchange effect, and free
cash flow. The presentation of these financial measures is not
intended to be considered in isolation or as a substitute for, or
superior to, financial information prepared and presented in
accordance with GAAP. Investors are cautioned that there are
material limitations associated with the use of non-GAAP financial
measures as an analytical tool. In addition, these measures may be
different from non-GAAP financial measures used by other companies,
limiting their usefulness for comparison purposes. We compensate
for these limitations by providing specific information regarding
the GAAP amounts excluded from these non-GAAP financial
measures.
We believe these non-GAAP financial measures provide investors
with useful supplemental information about the financial
performance of our business, enable comparison of financial results
between periods where certain items may vary independent of
business performance, and allow for greater transparency with
respect to key metrics used by management in operating our
business.
Our non-GAAP financial measures are adjusted for the following
items:
Foreign exchange effect on revenue. We translated revenue
for the three and six months ended June 30, 2024 using the
prior year's monthly exchange rates for our settlement or billing
currencies other than the U.S. dollar, which we believe is a useful
metric that facilitates comparison to our historical
performance.
Purchases of property and equipment; Principal payments on
finance leases. We subtract both purchases of property and
equipment, net of proceeds and principal payments on finance leases
in our calculation of free cash flow because we believe that these
two items collectively represent the amount of property and
equipment we need to procure to support our business, regardless of
whether we procure such property or equipment with a finance lease.
We believe that this methodology can provide useful supplemental
information to help investors better understand underlying trends
in our business. Free cash flow is not intended to represent our
residual cash flow available for discretionary expenditures.
For more information on our non-GAAP financial measures and a
reconciliation of GAAP to non-GAAP measures, please see the
"Reconciliation of GAAP to Non-GAAP Results" table in this press
release.
|
META PLATFORMS,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(In millions, except
per share amounts)
|
|
(Unaudited)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue
|
$
39,071
|
|
$
31,999
|
|
$
75,527
|
|
$
60,645
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
7,308
|
|
5,945
|
|
13,948
|
|
12,054
|
|
Research and
development
|
10,537
|
|
9,344
|
|
20,515
|
|
18,725
|
|
Marketing and
sales
|
2,721
|
|
3,154
|
|
5,285
|
|
6,198
|
|
General and
administrative (1)
|
3,658
|
|
4,164
|
|
7,114
|
|
7,049
|
|
Total costs and
expenses
|
24,224
|
|
22,607
|
|
46,862
|
|
44,026
|
|
Income from
operations
|
14,847
|
|
9,392
|
|
28,665
|
|
16,619
|
|
Interest and other
income (expense), net
|
259
|
|
(99)
|
|
624
|
|
(19)
|
|
Income before provision
for income taxes
|
15,106
|
|
9,293
|
|
29,289
|
|
16,600
|
|
Provision for income
taxes
|
1,641
|
|
1,505
|
|
3,455
|
|
3,102
|
|
Net
income
|
$
13,465
|
|
$
7,788
|
|
$
25,834
|
|
$
13,498
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
5.31
|
|
$
3.03
|
|
$
10.17
|
|
$
5.24
|
|
Diluted
|
$
5.16
|
|
$
2.98
|
|
$
9.86
|
|
$
5.18
|
|
Weighted-average
shares used to compute earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
2,534
|
|
2,568
|
|
2,540
|
|
2,577
|
|
Diluted
|
2,610
|
|
2,612
|
|
2,619
|
|
2,604
|
|
|
|
|
|
|
(1) The second quarter
2024 general and administrative expenses include a charge for the
recent settlement with the State of Texas. The settlement amount is
fully accrued as of June 30, 2024.
|
|
META PLATFORMS,
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
millions)
|
|
(Unaudited)
|
|
June 30,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
32,045
|
|
$
41,862
|
|
Marketable
securities
|
26,035
|
|
23,541
|
|
Accounts receivable,
net
|
14,505
|
|
16,169
|
|
Prepaid expenses and
other current assets
|
3,846
|
|
3,793
|
|
Total current
assets
|
76,431
|
|
85,365
|
|
Non-marketable equity
securities
|
6,207
|
|
6,141
|
|
Property and equipment,
net
|
102,959
|
|
96,587
|
|
Operating lease
right-of-use assets
|
14,058
|
|
13,294
|
|
Goodwill
|
20,654
|
|
20,654
|
|
Other assets
|
9,929
|
|
7,582
|
|
Total
assets
|
$
230,238
|
|
$
229,623
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
3,173
|
|
$
4,849
|
|
Operating lease
liabilities, current
|
1,917
|
|
1,623
|
|
Accrued expenses and
other current
liabilities
|
21,914
|
|
25,488
|
|
Total current
liabilities
|
27,004
|
|
31,960
|
|
Operating lease
liabilities, non-current
|
17,685
|
|
17,226
|
|
Long-term
debt
|
18,389
|
|
18,385
|
|
Long-term income
taxes
|
7,897
|
|
7,514
|
|
Other
liabilities
|
2,500
|
|
1,370
|
|
Total
liabilities
|
73,475
|
|
76,455
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
78,270
|
|
73,253
|
|
Accumulated other
comprehensive loss
|
(2,695)
|
|
(2,155)
|
|
Retained
earnings
|
81,188
|
|
82,070
|
|
Total stockholders'
equity
|
156,763
|
|
153,168
|
|
Total liabilities
and stockholders' equity
|
$
230,238
|
|
$
229,623
|
|
META PLATFORMS,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
millions)
|
|
(Unaudited)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
|
$ 13,465
|
|
$
7,788
|
|
$ 25,834
|
|
$ 13,498
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
3,637
|
|
2,623
|
|
7,011
|
|
5,147
|
|
Share-based
compensation
|
4,616
|
|
4,060
|
|
8,178
|
|
7,111
|
|
Deferred income
taxes
|
(1,643)
|
|
(1,137)
|
|
(2,098)
|
|
(1,757)
|
|
Impairment charges for
facilities consolidation, net
|
41
|
|
232
|
|
280
|
|
1,002
|
|
Other
|
(6)
|
|
212
|
|
(71)
|
|
204
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(1,171)
|
|
(1,424)
|
|
1,350
|
|
1,122
|
|
Prepaid expenses and
other current assets
|
(84)
|
|
(54)
|
|
16
|
|
767
|
|
Other
assets
|
54
|
|
37
|
|
(41)
|
|
67
|
|
Accounts
payable
|
250
|
|
(51)
|
|
(862)
|
|
(1,155)
|
|
Accrued expenses and
other current liabilities
|
(497)
|
|
5,174
|
|
(1,771)
|
|
5,268
|
|
Other
liabilities
|
708
|
|
(151)
|
|
790
|
|
33
|
|
Net cash provided
by operating activities
|
19,370
|
|
17,309
|
|
38,616
|
|
31,307
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(8,173)
|
|
(6,134)
|
|
(14,573)
|
|
(12,957)
|
|
Purchases of
marketable debt securities
|
(3,289)
|
|
(717)
|
|
(10,176)
|
|
(803)
|
|
Sales and maturities
of marketable debt securities
|
3,233
|
|
1,816
|
|
7,858
|
|
2,351
|
|
Acquisitions of
businesses and intangible assets
|
(57)
|
|
(83)
|
|
(129)
|
|
(527)
|
|
Other investing
activities
|
(12)
|
|
(85)
|
|
(12)
|
|
(10)
|
|
Net cash used in
investing activities
|
(8,298)
|
|
(5,203)
|
|
(17,032)
|
|
(11,946)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Taxes paid related to
net share settlement of equity awards
|
(3,208)
|
|
(1,692)
|
|
(6,370)
|
|
(2,701)
|
|
Repurchases of Class A
common stock
|
(6,299)
|
|
(898)
|
|
(21,307)
|
|
(10,263)
|
|
Dividend
payments
|
(1,266)
|
|
—
|
|
(2,539)
|
|
—
|
|
Proceeds from issuance
of long-term debt, net
|
—
|
|
8,455
|
|
—
|
|
8,455
|
|
Principal payments on
finance leases
|
(299)
|
|
(220)
|
|
(614)
|
|
(484)
|
|
Other financing
activities
|
(106)
|
|
(353)
|
|
(115)
|
|
(231)
|
|
Net cash provided
by (used in) financing activities
|
(11,178)
|
|
5,292
|
|
(30,945)
|
|
(5,224)
|
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash
|
(152)
|
|
(14)
|
|
(440)
|
|
71
|
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash
|
(258)
|
|
17,384
|
|
(9,801)
|
|
14,208
|
|
Cash, cash equivalents,
and restricted cash at beginning of the period
|
33,284
|
|
12,420
|
|
42,827
|
|
15,596
|
|
Cash, cash
equivalents, and restricted cash at end of the
period
|
$ 33,026
|
|
$ 29,804
|
|
$ 33,026
|
|
$ 29,804
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the
condensed consolidated balance sheets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 32,045
|
|
$ 28,785
|
|
$ 32,045
|
|
$ 28,785
|
|
Restricted cash,
included in prepaid expenses and other current assets
|
100
|
|
165
|
|
100
|
|
165
|
|
Restricted cash,
included in other assets
|
881
|
|
854
|
|
881
|
|
854
|
|
Total cash, cash
equivalents, and restricted cash
|
$ 33,026
|
|
$ 29,804
|
|
$ 33,026
|
|
$ 29,804
|
|
META PLATFORMS,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
millions)
|
|
(Unaudited)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Supplemental cash
flow data
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes, net
|
$
5,929
|
|
$
1,102
|
|
$
6,559
|
|
$
1,507
|
|
Cash paid for
interest, net of amounts capitalized
|
$
124
|
|
$
—
|
|
$
245
|
|
$
182
|
|
Non-cash investing and
financing activities:
|
|
|
|
|
|
|
|
|
Property and equipment
in accounts payable and accrued expenses and other
current liabilities
|
$
3,229
|
|
$
3,845
|
|
$
3,229
|
|
$
3,845
|
|
Acquisition of
businesses and intangible assets in accrued expenses and
other current liabilities and other liabilities
|
$
267
|
|
$
217
|
|
$
267
|
|
$
217
|
Segment Results
We report our financial results for our two reportable segments:
Family of Apps (FoA) and Reality
Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp,
and other services. RL includes our virtual, augmented, and mixed
reality related consumer hardware, software, and content.
The following table presents our segment information of revenue
and income (loss) from operations:
|
Segment
Information
|
|
(In
millions)
|
|
(Unaudited)
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Advertising
|
$ 38,329
|
|
|
$ 31,498
|
|
|
$
73,965
|
|
|
$
59,599
|
|
Other
revenue
|
389
|
|
|
225
|
|
|
769
|
|
|
430
|
|
Family of
Apps
|
38,718
|
|
|
31,723
|
|
|
74,734
|
|
|
60,029
|
|
Reality Labs
|
353
|
|
|
276
|
|
|
793
|
|
|
616
|
|
Total
revenue
|
$ 39,071
|
|
|
$ 31,999
|
|
|
$
75,527
|
|
|
$
60,645
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations:
|
|
|
|
|
|
|
|
|
|
|
|
Family of
Apps
|
$ 19,335
|
|
|
$ 13,131
|
|
|
$
36,999
|
|
|
$
24,351
|
|
Reality
Labs
|
(4,488)
|
|
|
(3,739)
|
|
|
(8,334)
|
|
|
(7,732)
|
|
Total income from
operations
|
$ 14,847
|
|
|
$
9,392
|
|
|
$
28,665
|
|
|
$
16,619
|
|
Reconciliation of
GAAP to Non-GAAP Results
|
|
(In millions, except
percentages)
|
|
(Unaudited)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
GAAP revenue
|
$ 39,071
|
|
$ 31,999
|
|
$ 75,527
|
|
$
60,645
|
|
Foreign exchange
effect on 2024 revenue using 2023 rates
|
371
|
|
|
|
265
|
|
|
|
Revenue excluding
foreign exchange effect
|
$ 39,442
|
|
|
|
$ 75,792
|
|
|
|
GAAP revenue
year-over-year change %
|
22 %
|
|
|
|
25 %
|
|
|
|
Revenue excluding
foreign exchange effect year-over-year change %
|
23 %
|
|
|
|
25 %
|
|
|
|
GAAP advertising
revenue
|
$ 38,329
|
|
$ 31,498
|
|
$ 73,965
|
|
$
59,599
|
|
Foreign exchange
effect on 2024 advertising revenue using 2023 rates
|
367
|
|
|
|
261
|
|
|
|
Advertising revenue
excluding foreign exchange effect
|
$ 38,696
|
|
|
|
$ 74,226
|
|
|
|
GAAP advertising
revenue year-over-year change %
|
22 %
|
|
|
|
24 %
|
|
|
|
Advertising revenue
excluding foreign exchange effect year-over-year
change %
|
23 %
|
|
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$ 19,370
|
|
$ 17,309
|
|
$ 38,616
|
|
$
31,307
|
|
Purchases of property
and equipment, net
|
(8,173)
|
|
(6,134)
|
|
(14,573)
|
|
(12,957)
|
|
Principal payments on
finance leases
|
(299)
|
|
(220)
|
|
(614)
|
|
(484)
|
|
Free cash
flow
|
$ 10,898
|
|
$ 10,955
|
|
$ 23,429
|
|
$
17,866
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/meta-reports-second-quarter-2024-results-302211512.html
SOURCE Meta