Facebook parent company Meta's fourth-quarter revenue of $33.7 billion

Meta (formerly Facebook) today 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 US$ 33.671 billion, an increase of 20% compared with US$28.072 billion in the same period of the previous year; net profit was US$ 10.285 billion, a decrease of 8% compared with the net profit of US$11.219 billion in the same period of the previous year.

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;
  • Meta's fourth-quarter operating margin was 37%, compared to 46% in the prior-year period;
  • Meta's fourth-quarter net profit was US$10.285 billion, down 8% from US$11.219 billion in the same period last year;
  • Meta'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 meta's fiscal year 2021 operating profit was $46.753 billion, up 34% from $32.671 billion in fiscal 2020;
  • Meta's FY21 operating margin was 40%, compared to 38% FY20 operating margin;
  • Meta'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.

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 Meta, 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, and the 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 fiscal year 2020;
  • Meta's fourth-quarter capital expenditures of $5.54 billion and full-year capital expenditures of $19.24 billion, including 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 Meta totaled $48 billion at the end of the fourth quarter of 2021;
  • As of December 31, 2021, Meta's total workforce was 71,970, an increase of 23% over the same period last year.

Financial analysis:

Revenue:

  • Meta's fourth-quarter revenue was $33.671 billion, up 20% from $28.072 billion in the same period a year earlier.
  • Meta's fiscal 2021 revenue was $117.929 billion, up 37% from $85.965 billion in fiscal 2020.
  • Meta's fourth-quarter revenue from advertising was $32.639 billion, compared with $27.187 billion a year earlier.
  • Meta's revenue from advertising in fiscal 2021 was $114.934 billion, compared to $84.169 billion in fiscal 2020.
  • Meta's fourth-quarter revenue from other businesses was $155 million, compared with $168 million a year earlier.
  • Meta's fiscal 2021 revenue from other businesses was $721 million, compared with $657 million in fiscal 2020, a 72% increase.
  • Meta's fourth-quarter revenue from the "app family" (the combined revenue of the two businesses) was $32.794 billion, compared to $27.355 billion 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.
  • Meta's fiscal 2021 revenue from Reality Labs was $2,274 million, compared to $1,139 million in fiscal 2020.

Costs and expenses:

Meta's total costs and expenses in the fourth quarter were $21,086 million, compared to $15,297 million in the year-ago period. Of which: cost of revenue was $6.348 billion, compared with $5.210 billion in the same period last year; research and development expenses were $7.046 billion, compared with $5.208 billion in the same period last year; marketing and sales expenses were $4.387 billion, This compares to $3,280 million a year earlier; general and administrative expenses were $3,305 million, compared to $1,599 million a year earlier.

Meta's total costs and expenses in fiscal 2021 were $71.176 billion, compared to $53.294 billion in fiscal 2020. Of which: cost of revenue was $22.649 billion, compared to $16.692 billion in fiscal 2020; research and development expenses were $24.655 billion, compared to $18.447 billion in fiscal 2020; marketing and sales expenses were $14.043 billion, This compares to $11,591 million in fiscal 2020; general and administrative expenses were $9,829 million, compared to $6,564 million in fiscal 2020.

Operating profit:

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

Operating Profit Margin:

  • Meta's fourth-quarter operating margin was 37%, compared to 46% a year earlier.
  • Meta's fiscal 2021 operating margin was 40%, compared to 38% in fiscal 2020.

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. Meta's effective tax rate for the fourth quarter was 19%, compared to 14% a year earlier.

Meta'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.

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. Meta'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.

Meta'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.

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.

Cash and Marketable Securities:

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

Free cash flow:

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

Telephone conference:

Following the earnings release, Meta will host a conference call at 5:00 p.m. ET on February 2 (6:00 a.m. Beijing time on February 3) to answer questions from analysts and investors. Investors can log on to the investor relations channel of the Meta website http://investor.fb.com/ to listen to the live conference call and view the company's financial report.

After the conference call, investors can also log on to the same page to listen to the recording of Meta's earnings conference call. Investors can access the recording by dialing +1 (402) 977-9140 or +1 (800) 633-8284 within one week of the conference call with the passcode "22013689".

Analyst expectations and share price changes:

Meta's fourth-quarter revenue of $33.671 billion exceeded Wall Street analysts' previous expectations; diluted earnings per share were $3.67, missing expectations. According to data provided by Yahoo Finance Channel, 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 Channel, 51 analysts had previously expected Meta’s fiscal 2021 earnings per share to reach $13.92, and 51 analysts had previously expected Meta’s 2021 fiscal year revenue to reach $117.69 billion.

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