Top 10 current financial situations of Meta (Facebook)


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Recently, Meta (formerly Facebook) released its unaudited financial results for the fourth quarter and full year of fiscal 2021 ended December 31. According to the report, Meta’s fourth-quarter revenue was $33.671 billion, an increase of 20% compared with $28.072 billion in the same period last year. The company’s net profit was $10.285 billion, a decrease of 8% compared with the net profit of $11.219 billion in the same period last year. From the report, we sieved out the top 10 financial situations of Meta presently. Before looking at the top 10 financial situations, let us take a look at the key results for the fourth quarter, the fiscal year 2021 as well as the operational points.

Meta

Key results for the fourth quarter:

  • Meta’s fourth-quarter revenue was $33.671 billion, an increase of 20% compared to $28.072 billion in the same period last year.
  • Meta’s fourth-quarter operating profit was $12.585 billion, down 1% from $12.775 billion in the same period last year.
  • Its fourth-quarter operating margin was 37%, compared to 46% in the prior-year period.
  • Its fourth-quarter net profit was $10.285 billion, down 8% from $11.219 billion in the same period last year.
  • The company’s fourth-quarter diluted earnings per ADS was $3.67, compared to $3.88 per ADS in the prior-year period, down 5% year-over-year.

Key results for the fiscal year 2021

  • Meta’s fiscal 2021 revenue was $117.929 billion, up 37% from $85.965 billion in fiscal 2020.
  • The company’s fiscal year 2021 operating profit was $46.753 billion, up 34% from $32.671 billion in fiscal 2020.
  • Its FY21 operating margin was 40%, compared to 38% FY20 operating margin.
  • Its fiscal 2021 net profit was $39.370 billion, up 35% from $29.146 billion in fiscal 2020.
  • The company’s fiscal 2021 diluted earnings per ADS was $13.77, compared to fiscal 2020 diluted earnings per ADS of $10.09, an increase of 36% year over year.

Operational points

  • In December 2021, the average number of Meta daily active users (DAU) was 1.93 billion, an increase of 5% over the same period last year.
  • As of December 31, 2021, the number of Meta monthly active users (MAU) was 2.91 billion, an increase of 4% over the same period last year.
  •  The average daily active users (DAP) of the Meta service “family” (which includes services such as Facebook, Instagram, WhatsApp, and Messenger) in December 2021 was 2.82 billion, an increase of 8% over the same period last year.
  • As of December 31, 2021, the number of monthly active users (MAP) of the Meta service “family” was 3.59 billion, an increase of 9% over the same period last year. 
  • In the fourth quarter of 2021, “ad impressions” delivered through the Meta “family of apps” increased by 13% compared to the same period last year. Furthermore, its average price per ad increased by 6% compared to the same period last year. For the full fiscal year 2021, “ad impressions” increased by 10% compared to the fiscal year 2020, and the average price per ad increased by 24% compared with the fiscal year 2020. 
  • Meta’s fourth-quarter capital expenditure is $5.54 billion and full-year capital expenditure is $19.24 billion. This includes principal payments for finance leases. 
  • Meta repurchased $19.18 billion and $44.81 billion of Class A common stock in the fourth quarter and throughout fiscal 2021, respectively. As of December 31, 2021, the remaining amount of the company’s authorized stock repurchase program was $38.79 billion. 
  • Cash, cash equivalents, and marketable securities held by the company totaled $48 billion at the end of the fourth quarter of 2021. 
  • As of December 31, 2021, the company’s total workforce was 71,970, an increase of 23% over the same period last year.

Top 10 financial analysis (situations) of the company

1. Revenue

  • Meta’s fourth-quarter revenue was $33.671 billion, up 20% from $28.072 billion in the same period a year earlier.
  • The company’s fiscal 2021 revenue was $117.929 billion, up 37% from $85.965 billion in fiscal 2020.
  • Its fourth-quarter revenue from advertising was $32.639 billion, compared with $27.187 billion a year earlier.
  • Meta’s fiscal 2021 revenue from advertising was $114.934 billion, compared to $84.169 billion in fiscal 2020.
  • The company’s fourth-quarter revenue from other businesses was $155 million, compared with $168 million a year earlier.
  • It’s fiscal 2021 revenue from other businesses was $721 million, compared with $657 million in fiscal 2020, a 72% increase.
  • Its fourth-quarter revenue from the “app family” (the sum of the two businesses above) was $32.794 billion, compared to $27.355 billion in the same period a year earlier.
  • Meta’s fiscal 2021 revenue from the “app family” was $115.655 billion, compared to $84.826 billion in fiscal 2020.
  • Meta’s fourth-quarter revenue from its Reality Labs business was $877 million, compared with $717 million a year earlier.
  • The company’s fiscal 2021 revenue from the Reality Lab business was $2,274 million, compared to $1,139 million in fiscal 2020.

2. Costs and expenses:

Meta’s total costs and expenses for the fourth quarter are $21,086 million, compared to $15,297 million a year earlier. Of this figure, the cost of revenue was $6.348 billion, compared with $5.210 billion in the same period last year. The research and development expenses were $7.046 billion, compared with $5.208 billion in the same period last year. For marketing and sales, the expenses were $4.387 billion which is higher than the $3.280 billion spent a year earlier. Furthermore, its general and administrative expenses were $3.305 million, compared to $1.599 million a year earlier.

The company’s total costs and expenses in fiscal 2021 were $71,176 million, compared to $53,294 million in fiscal 2020. Of this figure, the cost of revenue was $22.649 billion, compared to $16.692 billion in fiscal 2020. The research and development expenses were $24.655 billion, compared to $18.447 billion in fiscal 2020. For marketing and sales, the expenses were $14.043 billion which is higher than the $11.591 billion spent in fiscal 2020. Also, its general and administrative expenses were $9,829 million, compared to $6,564 million in fiscal 2020.

3. Operating profit

Meta’s fourth-quarter operating profit was $12.585 billion, down 1% from $12.775 billion a year earlier. The company’s fiscal 2021 operating profit was $46.753 billion, up 34% from $32.671 billion in fiscal 2020.

4. Operating Profit Margin

Meta’s fourth-quarter operating margin was 37%, compared to 46% in the year-ago period. The company’s fiscal 2021 operating margin was 40%, compared to 38% in fiscal 2020.

5. Income tax provision

Meta’s fourth-quarter income tax provision was $2.417 billion, an increase of 32% compared to $1.836 billion a year earlier. Its effective tax rate for the fourth quarter was 19%, compared to 14% a year earlier. The company’s fiscal 2021 income tax provision was $7.914 billion, up 96% from $4.034 billion in fiscal 2020. Meta’s effective tax rate for fiscal 2021 is 17%, compared to 12% for fiscal 2020.

6. Net profit:

Meta’s fourth-quarter net profit was $10.285 billion, down 8% from the $11.219 billion net profit in the same period last year. The company’s fourth-quarter diluted earnings per ADS was $3.67, compared to $3.88 per ADS in the year-ago quarter, down 5% year over year. Furthermore, it’s fiscal 2021 net profit was $39.370 billion, up 35% from $29.146 billion in fiscal 2020. Meta’s fiscal 2021 diluted earnings per ADS was $13.77, compared to fiscal 2020 diluted earnings per ADS of $10.09, an increase of 36% year over year.

7. Capital expenditures:

Meta’s fourth-quarter capital expenditures were $5.54 billion and full-year capital expenditures were $19.24 billion, including principal payments for finance leases.

8. Cash and Marketable Securities:

At the end of the fourth quarter of 2021, Meta held cash, cash equivalents, and marketable securities totaling $48 billion.

9. Free cash flow:

Meta’s fourth-quarter free cash flow was $12.562 billion, compared to $9.222 billion a year earlier. The company’s fiscal 2021 free cash flow was $38,439 million, compared to $23,028 million in fiscal 2020.

10. Analyst expectations and share price changes:

Meta’s fourth-quarter revenue of $33.671 billion exceeded Wall Street analysts’ previous expectations. However, its diluted earnings per share were $3.67, missing expectations. According to data provided by Yahoo Finance, 40 analysts had expected Meta’s fourth-quarter revenue to reach $33.41 billion, and 39 analysts had expected Meta’s fourth-quarter earnings per share to reach $3.84. Affected by this, Meta’s shares fell sharply by nearly 23% in after-hours trading on the Nasdaq after the earnings report.

In addition, according to data provided by Yahoo Finance, 51 analysts had previously expected Meta’s 2021 fiscal year earnings per share to reach $13.92, and 51 analysts had previously expected Meta’s 2021 fiscal year revenue to reach $117.69 billion. On the same day, Meta shares rose $4.00 in regular Nasdaq trading to close at $323.00, or 1.25%.

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