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Meta Platforms, Inc. (FB) SEC Filing 8-K Material Event for the period ending Wednesday, April 27, 2022

Meta Platforms, Inc.

CIK: 1326801 Ticker: META

Meta Reports First Quarter 2022 Results


MENLO PARK, Calif. – April 27, 2022 – Meta Platforms, Inc. (Nasdaq: FB) today 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 % Change
In millions, except percentages and per share amounts20222021
Total revenue$27,908 $26,171 7%
Total costs and expenses19,384 14,793 31%
Income from operations$8,524 $11,378 (25)%
Operating margin31 %43 %
Provision for income taxes$1,443 $2,006 (28)%
Effective tax rate 16 %17 %
Net income$7,465 $9,497 (21)%
Diluted earnings per share (EPS)$2.72 $3.30 (18)%


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.
1



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.

2



Webcast and Conference Call Information
Meta will host a conference call to discuss the results at 2 p.m. PT / 5 p.m. ET today. The live webcast of Meta's earnings conference call can be accessed at investor.fb.com, along with the earnings press release, financial tables, and slide presentation. Meta uses the investor.fb.com and about.fb.com/news/ websites as well as Mark Zuckerberg's Facebook Page (facebook.com/zuck) and Instagram account (instagram.com/zuck) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Following the call, a replay will be available at the same website. A telephonic replay will be available for one week following the conference call at +1 (416) 626-4100 or +1 (800) 558-5253, conference ID 22016731.

Transcripts of conference calls with publishing equity research analysts held today will also be posted to the investor.fb.com website.

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:
Deborah Crawford
investor@fb.com / investor.fb.com

Press:
Ryan Moore
press@fb.com / about.fb.com/news/
3



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 the ongoing COVID-19 pandemic and 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 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 and regulatory concerns; risks associated with acquisitions; security breaches; and our ability to manage growth and geographically-dispersed operations. 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 Annual Report on Form 10-K filed with the SEC on February 3, 2022, 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 March 31, 2022. In addition, please note that the date of this press release is April 27, 2022, 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.

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.

We exclude the following items from our non-GAAP financial measures:

Foreign exchange effect on revenue. We translated revenue for the three months ended March 31, 2022 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.
4



META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three Months Ended March 31,
20222021
Revenue$27,908 $26,171 
Costs and expenses: 
Cost of revenue6,005 5,131 
Research and development7,707 5,197 
Marketing and sales3,312 2,843 
General and administrative2,360 1,622 
Total costs and expenses19,384 14,793 
Income from operations8,524 11,378 
Interest and other income, net384 125 
Income before provision for income taxes8,908 11,503 
Provision for income taxes1,443 2,006 
Net income$7,465 $9,497 
Earnings per share attributable to Class A and Class B common stockholders:
Basic$2.74 $3.34 
Diluted$2.72 $3.30 
Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders:
Basic2,725 2,847 
Diluted2,742 2,882 
Share-based compensation expense included in costs and expenses:
Cost of revenue$160 $118 
Research and development1,941 1,408 
Marketing and sales216 174 
General and administrative181 130 
Total share-based compensation expense$2,498 $1,830 





5



META PLATFORMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
March 31, 2022December 31, 2021
Assets
Current assets:
Cash and cash equivalents$14,886 $16,601 
Marketable securities29,004 31,397 
Accounts receivable, net11,390 14,039 
Prepaid expenses and other current assets3,985 4,629 
Total current assets59,265 66,666 
Equity investments6,775 6,775 
Property and equipment, net61,582 57,809 
Operating lease right-of-use assets12,241 12,155 
Intangible assets, net910 634 
Goodwill19,923 19,197 
Other assets3,522 2,751 
Total assets$164,218 $165,987 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$3,246 $4,083 
Partners payable935 1,052 
Operating lease liabilities, current1,159 1,127 
Accrued expenses and other current liabilities15,226 14,312 
Deferred revenue and deposits520 561 
Total current liabilities21,086 21,135 
Operating lease liabilities, non-current12,894 12,746 
Other liabilities7,010 7,227 
Total liabilities40,990 41,108 
Commitments and contingencies
Stockholders' equity:
Common stock and additional paid-in capital57,512 55,811 
Accumulated other comprehensive loss(1,996)(693)
Retained earnings67,712 69,761 
Total stockholders' equity123,228 124,879 
Total liabilities and stockholders' equity$164,218 $165,987 


6



META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended March 31,
20222021
Cash flows from operating activities
Net income$7,465 $9,497 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization2,156 1,972 
Share-based compensation2,498 1,830 
Deferred income taxes(563)418 
Other(221)(66)
Changes in assets and liabilities:
Accounts receivable2,557 849 
Prepaid expenses and other current assets573 (461)
Other assets(108)(10)
Accounts payable(882)(250)
Partners payable(105)(72)
Accrued expenses and other current liabilities763 (1,681)
Deferred revenue and deposits(52)
Other liabilities(5)210 
Net cash provided by operating activities14,076 12,242 
Cash flows from investing activities
Purchases of property and equipment(5,441)(4,303)
Proceeds relating to property and equipment
126 31 
Purchases of marketable securities(4,068)(6,231)
Sales of marketable securities5,065 1,650 
Maturities of marketable securities402 3,981 
Acquisitions of businesses and intangible assets(853)— 
Other investing activities(10)(2)
Net cash used in investing activities(4,779)(4,874)
Cash flows from financing activities
Taxes paid related to net share settlement of equity awards(925)(1,077)
Repurchases of Class A common stock(9,506)(3,939)
Principal payments on finance leases(233)(151)
Net change in overdraft in cash pooling entities20 (50)
Other financing activities(16)32 
Net cash used in financing activities(10,660)(5,185)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(149)(246)
Net increase (decrease) in cash, cash equivalents, and restricted cash(1,512)1,937 
Cash, cash equivalents, and restricted cash at beginning of the period16,865 17,954 
Cash, cash equivalents, and restricted cash at end of the period$15,353 $19,891 
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets
Cash and cash equivalents$14,886 $19,513 
Restricted cash, included in prepaid expenses and other current assets294 257 
Restricted cash, included in other assets173 121 
Total cash, cash equivalents, and restricted cash$15,353 $19,891 
7




META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended March 31,
20222021
Supplemental cash flow data
Cash paid for income taxes, net$502 $2,907 
Non-cash investing and financing activities:
Property and equipment in accounts payable and accrued expenses and other current liabilities$3,709 $2,198 
Acquisition of businesses in accrued expenses and other current liabilities and other liabilities$73 $118 
Settlement of convertible notes in exchange of equity securities in other current assets$131 $— 
Other current assets through financing arrangement in accrued expenses and other current liabilities$659 $— 
Repurchases of Class A common stock in accrued expenses and other current liabilities$221 $240 




8



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 augmented and virtual reality related consumer hardware, software, and content.

The following table presents our segment information of revenue and income (loss) from operations. For comparative purposes, amounts in the prior period have been recast:

Segment Information
(In millions)
(Unaudited)
Three Months Ended March 31,
20222021
Revenue:
Advertising$26,998 $25,439 
Other revenue215 198 
Family of Apps27,213 25,637 
Reality Labs695 534 
Total revenue$27,908 $26,171 
Income (loss) from operations:
Family of Apps$11,484 $13,205 
Reality Labs(2,960)(1,827)
Total income from operations$8,524 $11,378 




9




Reconciliation of GAAP to Non-GAAP Results
(In millions, except percentages)
(Unaudited)
Three Months Ended March 31,
20222021
GAAP revenue$27,908 $26,171 
Foreign exchange effect on 2022 revenue using 2021 rates893 
Revenue excluding foreign exchange effect$28,801 
GAAP revenue year-over-year change %%
Revenue excluding foreign exchange effect year-over-year change %10 %
GAAP advertising revenue$26,998 $25,439 
Foreign exchange effect on 2022 advertising revenue using 2021 rates888 
Advertising revenue excluding foreign exchange effect$27,886 
GAAP advertising revenue year-over-year change %%
Advertising revenue excluding foreign exchange effect year-over-year change %10 %
Net cash provided by operating activities$14,076 $12,242 
Purchases of property and equipment, net(5,315)(4,272)
Principal payments on finance leases(233)(151)
Free cash flow$8,528 $7,819 
10


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 


FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 27, 2022
fb-20220427_g1.jpg
Meta Platforms, Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3555120-1665019
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
1601 Willow Road, Menlo Park, California 94025
(Address of principal executive offices and Zip Code)

(650) 543-4800
(Registrant’s telephone number, including area code)

N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.000006 par valueFBThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 Results of Operations and Financial Condition.
On April 27, 2022, Meta Platforms, Inc. ("Meta") issued a press release and will hold a conference call regarding its financial results for the quarter ended March 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this report.
The information furnished with this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Meta is making reference to non-GAAP financial information in both the press release and the conference call. A reconciliation of GAAP to non-GAAP results is provided in the attached Exhibit 99.1 press release.
Meta uses the investor.fb.com and about.fb.com/news/ websites as well as Mark Zuckerberg's Facebook Page (facebook.com/zuck) and Instagram account (instagram.com/zuck) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits

Exhibit NumberExhibit Title or Description
99.1
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document)





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
META PLATFORMS, INC.
Date: April 27, 2022By:/s/ Katherine R. Kelly
Name: Katherine R. Kelly
Title: Vice President, Deputy General Counsel and Secretary


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Ticker: META
CIK: 1326801
Form Type: 8-K Corporate News
Accession Number: 0001326801-22-000054
Submitted to the SEC: Wed Apr 27 2022 4:07:54 PM EST
Accepted by the SEC: Wed Apr 27 2022
Period: Wednesday, April 27, 2022
Industry: Computer Programming Data Processing
Events:
  1. Earnings Release
  2. Financial Exhibit

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