Meta Platforms, Inc. (Nasdaq: FB) reported financial results for the quarter ended March 31, 2022.
“We made progress this quarter across a number of key company priorities and we remain confident in the long-term opportunities and growth that our product roadmap will unlock,” said Mark Zuckerberg, Meta founder and CEO. “More people use our services today than ever before, and I’m proud of how our products are serving people around the world.”
First Quarter 2022 Financial Highlights
|
Three Months Ended March 31, |
Year-over-Year % |
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|
In millions, except percentages and per share amounts |
2022 |
2021 |
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|
Total revenue |
$ 27,908 |
$ 26,171 |
7 % |
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|
Total costs and expenses |
$ 19,384 |
$ 14,793 |
31 % |
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|
Income from operations |
$ 8,524 |
$ 11,378 |
(25) % |
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|
Operating margin |
31 % |
43 % |
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|
Provision for income taxes |
$ 1,443 |
$ 2,006 |
(28) % |
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|
Effective tax rate |
16 % |
17 % |
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|
Net income |
$ 7,465 |
$ 9,497 |
(21) % |
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|
Diluted earnings per share (EPS) |
$ 2.72 |
$ 3.30 |
(18) % |
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First Quarter 2022 Operational and Other Financial Highlights
- Family daily active people (DAP) – DAP was 2.87 billion on average for March 2022, an increase of 6% year-over-year.
- Family monthly active people (MAP) – MAP was 3.64 billion as of March 31, 2022, an increase of 6% year-over-year.
- Facebook daily active users (DAUs) – DAUs were 1.96 billion on average for March 2022, an increase of 4% year-over-year.
- Facebook monthly active users (MAUs) – MAUs were 2.94 billion as of March 31, 2022, an increase of 3% year-over-year.
- Ad impressions and price per ad – In the first quarter of 2022, ad impressions delivered across our Family of Apps increased by 15% year-over-year and the average price per ad decreased by 8% year-over-year.
- Capital expenditures – Capital expenditures, including principal payments on finance leases, were $5.55 billion for the first quarter of 2022.
- Share repurchases – We repurchased $9.39 billion of our Class A common stock in the first quarter of 2022. As of March 31, 2022, we had $29.41 billion available and authorized for repurchases.
- Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $43.89 billion as of March 31, 2022.
- Headcount – Headcount was 77,805 as of March 31, 2022, an increase of 28% year-over-year.
CFO Outlook Commentary
We expect second quarter 2022 total revenue to be in the range of $28-30 billion. This outlook reflects a continuation of the trends impacting revenue growth in the first quarter, including softness in the back half of the first quarter that coincided with the war in Ukraine. Our guidance assumes foreign currency will be approximately a 3% headwind to year-over-year growth in the second quarter, based on current exchange rates.
In addition, as noted on previous calls, we continue to monitor developments regarding the viability of transatlantic data transfers and their potential impact on our European operations, and we are pleased with the progress on a political agreement.
We expect 2022 total expenses to be in the range of $87-92 billion, lowered from our prior outlook of $90-95 billion. We expect 2022 expense growth to be driven primarily by the Family of Apps segment, followed by Reality Labs.
We expect 2022 capital expenditures, including principal payments on finance leases, to be in the range of $29-34 billion, unchanged from our prior estimate.
Absent any changes to U.S. tax law, we expect our full-year 2022 tax rate to be above the first quarter rate and in the high teens.