MENLO
PARK, Calif., Oct. 30,
2024 /PRNewswire/ -- Meta Platforms, Inc. (Nasdaq:
META) today reported financial results for the quarter ended
September 30, 2024.
"We had a good quarter driven by AI progress across our apps and
business," said Mark Zuckerberg,
Meta founder and CEO. "We also have strong momentum with Meta AI,
Llama adoption, and AI-powered glasses."
Third Quarter 2024 Financial Highlights
|
Three Months Ended
September 30,
|
|
%
Change
|
|
In millions, except
percentages and per share amounts
|
2024
|
|
2023
|
|
|
Revenue
|
$
40,589
|
|
$
34,146
|
|
19 %
|
|
Costs and
expenses
|
23,239
|
|
20,398
|
|
14 %
|
|
Income from
operations
|
$
17,350
|
|
$
13,748
|
|
26 %
|
|
Operating
margin
|
43 %
|
|
40 %
|
|
|
|
Provision for income
taxes
|
$
2,134
|
|
$
2,437
|
|
(12) %
|
|
Effective tax
rate
|
12 %
|
|
17 %
|
|
|
|
Net income
|
$
15,688
|
|
$
11,583
|
|
35 %
|
|
Diluted earnings per
share (EPS)
|
$
6.03
|
|
$
4.39
|
|
37 %
|
Third Quarter 2024 Operational and Other
Financial Highlights
- Family daily active people (DAP) – DAP was 3.29 billion
on average for September 2024, an
increase of 5% year-over-year.
- Ad impressions – Ad impressions delivered across our
Family of Apps increased by 7% year-over-year.
- Average price per ad – Average price per ad increased by
11% year-over-year.
- Revenue – Total revenue was $40.59 billion, an increase of 19%
year-over-year. Revenue on a constant currency basis would have
increased 20% year-over-year.
- Costs and expenses – Total costs and expenses were
$23.24 billion, an increase of 14%
year-over-year.
- Capital expenditures – Capital expenditures, including
principal payments on finance leases, were $9.20 billion.
- Capital return program – Share repurchases were
$8.86 billion of our Class A common
stock and total dividend and dividend equivalent payments were
$1.26 billion.
- Cash, cash equivalents, and marketable securities
– Cash, cash equivalents, and marketable securities were
$70.90 billion as of September 30, 2024. Free cash flow was
$15.52 billion.
- Long-term debt – Long-term debt was $28.82 billion as of September 30, 2024.
- Headcount – Headcount was 72,404 as of September 30, 2024, an increase of 9%
year-over-year.
CFO Outlook Commentary
We expect fourth quarter 2024 total revenue to be in the range
of $45-48 billion. Our guidance
assumes foreign currency is approximately neutral 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
$96-98 billion, updated from our
prior range of $96-99 billion. 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.
We anticipate our full-year 2024 capital expenditures will be in
the range of $38-40 billion, updated
from our prior range of $37-40
billion. We continue to expect significant capital expenditures
growth in 2025. Given this, along with the back-end weighted nature
of our 2024 capital expenditures, we expect a significant
acceleration in infrastructure expense growth next year as we
recognize higher growth in depreciation and operating expenses of
our expanded infrastructure fleet.
Absent any changes to our tax landscape, we expect our fourth
quarter 2024 tax rate to be in the low-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 and advertising
review and enforcement 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 August 1, 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
September 30, 2024. In addition, please note that the date of
this press release is October 30, 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 nine months ended September 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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue
|
$
40,589
|
|
$
34,146
|
|
$
116,116
|
|
$
94,791
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
7,375
|
|
6,210
|
|
21,322
|
|
18,264
|
|
Research and
development
|
11,177
|
|
9,241
|
|
31,693
|
|
27,966
|
|
Marketing and
sales
|
2,822
|
|
2,877
|
|
8,107
|
|
9,075
|
|
General and
administrative
|
1,865
|
|
2,070
|
|
8,978
|
|
9,119
|
|
Total costs and
expenses
|
23,239
|
|
20,398
|
|
70,100
|
|
64,424
|
|
Income from
operations
|
17,350
|
|
13,748
|
|
46,016
|
|
30,367
|
|
Interest and other
income, net
|
472
|
|
272
|
|
1,095
|
|
254
|
|
Income before provision
for income taxes
|
17,822
|
|
14,020
|
|
47,111
|
|
30,621
|
|
Provision for income
taxes
|
2,134
|
|
2,437
|
|
5,589
|
|
5,540
|
|
Net
income
|
$
15,688
|
|
$
11,583
|
|
$
41,522
|
|
$
25,081
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
6.20
|
|
$
4.50
|
|
$
16.37
|
|
$
9.73
|
|
Diluted
|
$
6.03
|
|
$
4.39
|
|
$
15.88
|
|
$
9.56
|
|
Weighted-average
shares used to compute earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
2,529
|
|
2,576
|
|
2,536
|
|
2,577
|
|
Diluted
|
2,600
|
|
2,641
|
|
2,615
|
|
2,623
|
|
META PLATFORMS,
INC.
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
millions)
|
|
(Unaudited)
|
|
September 30,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
43,852
|
|
$
41,862
|
|
Marketable
securities
|
27,048
|
|
23,541
|
|
Accounts receivable,
net
|
14,700
|
|
16,169
|
|
Prepaid expenses and
other current assets
|
5,467
|
|
3,793
|
|
Total current
assets
|
91,067
|
|
85,365
|
|
Non-marketable equity
securities
|
6,071
|
|
6,141
|
|
Property and equipment,
net
|
112,162
|
|
96,587
|
|
Operating lease
right-of-use assets
|
14,812
|
|
13,294
|
|
Goodwill
|
20,654
|
|
20,654
|
|
Other assets
|
11,642
|
|
7,582
|
|
Total
assets
|
$
256,408
|
|
$
229,623
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
7,656
|
|
$
4,849
|
|
Operating lease
liabilities, current
|
2,016
|
|
1,623
|
|
Accrued expenses and
other current liabilities
|
23,658
|
|
25,488
|
|
Total current
liabilities
|
33,330
|
|
31,960
|
|
Operating lease
liabilities, non-current
|
18,208
|
|
17,226
|
|
Long-term
debt
|
28,823
|
|
18,385
|
|
Long-term income
taxes
|
9,171
|
|
7,514
|
|
Other
liabilities
|
2,347
|
|
1,370
|
|
Total
liabilities
|
91,879
|
|
76,455
|
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
80,749
|
|
73,253
|
|
Accumulated other
comprehensive loss
|
(1,192)
|
|
(2,155)
|
|
Retained
earnings
|
84,972
|
|
82,070
|
|
Total stockholders'
equity
|
164,529
|
|
153,168
|
|
Total liabilities
and stockholders' equity
|
$
256,408
|
|
$
229,623
|
|
META PLATFORMS,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
millions)
|
|
(Unaudited)
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
|
$
15,688
|
|
$
11,583
|
|
$
41,522
|
|
$
25,081
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
4,027
|
|
2,858
|
|
11,038
|
|
8,006
|
|
Share-based
compensation
|
4,250
|
|
3,492
|
|
12,428
|
|
10,603
|
|
Deferred income
taxes
|
(1,308)
|
|
3,049
|
|
(3,406)
|
|
1,292
|
|
Impairment charges for
facilities consolidation, net
|
8
|
|
340
|
|
288
|
|
1,342
|
|
Other
|
(11)
|
|
75
|
|
(82)
|
|
278
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
143
|
|
(678)
|
|
1,493
|
|
444
|
|
Prepaid expenses and
other current assets
|
(184)
|
|
(907)
|
|
(168)
|
|
(141)
|
|
Other
assets
|
(29)
|
|
(36)
|
|
(70)
|
|
31
|
|
Accounts
payable
|
667
|
|
611
|
|
(195)
|
|
(543)
|
|
Accrued expenses and
other current liabilities
|
572
|
|
87
|
|
(1,199)
|
|
5,355
|
|
Other
liabilities
|
901
|
|
(72)
|
|
1,691
|
|
(39)
|
|
Net cash provided
by operating activities
|
24,724
|
|
20,402
|
|
63,340
|
|
51,709
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment, net
|
(8,258)
|
|
(6,496)
|
|
(22,831)
|
|
(19,453)
|
|
Purchases of
marketable debt securities
|
(4,468)
|
|
(1,008)
|
|
(14,644)
|
|
(1,810)
|
|
Sales and maturities
of marketable debt securities
|
4,114
|
|
1,475
|
|
11,972
|
|
3,825
|
|
Acquisitions of
businesses and intangible assets
|
(132)
|
|
(38)
|
|
(261)
|
|
(565)
|
|
Other investing
activities
|
124
|
|
(10)
|
|
112
|
|
(20)
|
|
Net cash used in
investing activities
|
(8,620)
|
|
(6,077)
|
|
(25,652)
|
|
(18,023)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Taxes paid related to
net share settlement of equity awards
|
(3,544)
|
|
(2,087)
|
|
(9,913)
|
|
(4,789)
|
|
Repurchases of Class A
common stock
|
(8,818)
|
|
(3,570)
|
|
(30,125)
|
|
(13,832)
|
|
Payments for dividends
and dividend equivalents
|
(1,263)
|
|
—
|
|
(3,802)
|
|
—
|
|
Proceeds from issuance
of long-term debt, net
|
10,432
|
|
—
|
|
10,432
|
|
8,455
|
|
Principal payments on
finance leases
|
(944)
|
|
(267)
|
|
(1,558)
|
|
(751)
|
|
Other financing
activities
|
(234)
|
|
49
|
|
(350)
|
|
(182)
|
|
Net cash used in
financing activities
|
(4,371)
|
|
(5,875)
|
|
(35,316)
|
|
(11,099)
|
|
Effect of exchange rate
changes on cash, cash equivalents, and restricted cash
|
368
|
|
(354)
|
|
(72)
|
|
(283)
|
|
Net increase in cash,
cash equivalents, and restricted cash
|
12,101
|
|
8,096
|
|
2,300
|
|
22,304
|
|
Cash, cash equivalents,
and restricted cash at beginning of the period
|
33,026
|
|
29,804
|
|
42,827
|
|
15,596
|
|
Cash, cash
equivalents, and restricted cash at end of the
period
|
$
45,127
|
|
$
37,900
|
|
$
45,127
|
|
$
37,900
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the
condensed consolidated balance sheets
|
|
|
|
|
Cash and cash
equivalents
|
$
43,852
|
|
$
36,890
|
|
$
43,852
|
|
$
36,890
|
|
Restricted cash,
included in prepaid expenses and other current assets
|
90
|
|
152
|
|
90
|
|
152
|
|
Restricted cash,
included in other assets
|
1,185
|
|
858
|
|
1,185
|
|
858
|
|
Total cash, cash
equivalents, and restricted cash
|
$
45,127
|
|
$
37,900
|
|
$
45,127
|
|
$
37,900
|
|
|
|
|
|
META PLATFORMS,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(In
millions)
|
|
(Unaudited)
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Supplemental cash
flow data
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes, net
|
$
1,767
|
|
$
509
|
|
$
8,326
|
|
$
2,016
|
|
Cash paid for
interest, net of amounts capitalized
|
$
111
|
|
$
120
|
|
$
356
|
|
$
302
|
|
|
|
|
|
|
|
|
|
Non-cash investing and
financing activities:
|
|
|
|
|
|
|
|
|
Property and equipment
in accounts payable and accrued
expenses and other
current liabilities
|
$
7,217
|
|
$
4,506
|
|
$
7,217
|
|
$
4,506
|
|
Acquisition of
businesses and intangible assets in accrued
expenses and other current liabilities and other liabilities
|
$
186
|
|
$
182
|
|
$
186
|
|
$
182
|
|
Repurchases of Class A
common stock in accrued expenses and
other current liabilities
|
$
—
|
|
$
122
|
|
$
—
|
|
$
122
|
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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Advertising
|
$
39,885
|
|
$
33,643
|
|
$
113,850
|
|
$
93,242
|
|
Other
revenue
|
434
|
|
293
|
|
1,203
|
|
724
|
|
Family of
Apps
|
40,319
|
|
33,936
|
|
115,053
|
|
93,966
|
|
Reality Labs
|
270
|
|
210
|
|
1,063
|
|
825
|
|
Total
revenue
|
$
40,589
|
|
$
34,146
|
|
$
116,116
|
|
$
94,791
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations:
|
|
|
|
|
|
|
|
|
Family of
Apps
|
$
21,778
|
|
$
17,490
|
|
$
58,778
|
|
$
41,841
|
|
Reality
Labs
|
(4,428)
|
|
(3,742)
|
|
(12,762)
|
|
(11,474)
|
|
Total income from
operations
|
$
17,350
|
|
$
13,748
|
|
$
46,016
|
|
$
30,367
|
|
|
|
|
Reconciliation of
GAAP to Non-GAAP Results
|
|
(In millions, except
percentages)
|
|
(Unaudited)
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
GAAP revenue
|
$
40,589
|
|
$
34,146
|
|
$
116,116
|
|
$
94,791
|
|
Foreign exchange
effect on 2024 revenue using 2023 rates
|
544
|
|
|
|
809
|
|
|
|
Revenue excluding
foreign exchange effect
|
$
41,133
|
|
|
|
$
116,925
|
|
|
|
GAAP revenue
year-over-year change %
|
19 %
|
|
|
|
22 %
|
|
|
|
Revenue excluding
foreign exchange effect year-over-year change %
|
20 %
|
|
|
|
23 %
|
|
|
|
GAAP advertising
revenue
|
$
39,885
|
|
$
33,643
|
|
$
113,850
|
|
$
93,242
|
|
Foreign exchange
effect on 2024 advertising revenue using 2023 rates
|
538
|
|
|
|
799
|
|
|
|
Advertising revenue
excluding foreign exchange effect
|
$
40,423
|
|
|
|
$
114,649
|
|
|
|
GAAP advertising
revenue year-over-year change %
|
19 %
|
|
|
|
22 %
|
|
|
|
Advertising revenue
excluding foreign exchange effect year-over-year change
%
|
20 %
|
|
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
24,724
|
|
$
20,402
|
|
$
63,340
|
|
$
51,709
|
|
Purchases of property
and equipment, net
|
(8,258)
|
|
(6,496)
|
|
(22,831)
|
|
(19,453)
|
|
Principal payments on
finance leases
|
(944)
|
|
(267)
|
|
(1,558)
|
|
(751)
|
|
Free cash
flow
|
$
15,522
|
|
$
13,639
|
|
$
38,951
|
|
$
31,505
|
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SOURCE Meta