Meta Earnings Miss - Guides Weak
October 27, 2022
Meta Platforms reported financial results for the quarter ended September 30, 2022. The firm had earnings per share (EPS) of $1.64 with $1.89 expected. On the top line, the Facebook revenue came in $27.71 billion with $27.38 billion expected.
Daily Active Users (DAUs) was inline at 1.98 billion. Monthly Active Users (MAUs) were 2.96 billion while only 2.94 billion was sought. Average Revenue per User (ARPU) came in short at $9.41 because $9.83 was expected.
Meta guided for the fourth quarter at $30 billion to $32.5 billion. But, investors wanted sales of $32.2 billion.
"Our community continues to grow and I'm pleased with the strong engagement we're seeing driven by progress on our discovery engine and products like Reels," said Mark Zuckerberg, Meta founder and CEO. "While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth. We're approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company."
CFO Outlook Commentary
We expect fourth quarter 2022 total revenue to be in
the range of $30-32.5 billion. Our guidance assumes foreign currency will be an
approximately 7% headwind to year-over-year total revenue growth in the fourth
quarter, based on current exchange rates.
Third Quarter 2022 Operational and Other Financial Highlights
Family daily active people (DAP) – DAP was 2.93 billion on average for September 2022, an increase of 4% year-over-year.
Family monthly active people (MAP) – MAP was 3.71 billion as of September 30, 2022, an increase of 4% year-over-year.
Facebook daily active users (DAUs) – DAUs were 1.98 billion on average for September 2022, an increase of 3% year-over-year.
Facebook monthly active users (MAUs) – MAUs were 2.96 billion as of September 30, 2022, an increase of 2% year-over-year.
Ad impressions and price per ad – In the third quarter of 2022, ad impressions delivered across our Family of Apps increased by 17% year-over-year and the average price per ad decreased by 18% year-over-year.
Revenue – Revenue was $27.71 billion, a decrease of 4% year-over-year, and an increase of 2% year-over-year on a constant currency basis. Had foreign exchange rates remained constant with the third quarter of 2021, revenue would have been $1.79 billion higher.
Costs and expenses – Total costs and expenses were $22.05 billion, an increase of 19% year-over-year. This includes an impairment loss of $413 million for certain operating leases as part of our ongoing work to align our office facilities footprint with our anticipated operating needs.
Share repurchases – We repurchased $6.55 billion of our Class A common stock in the third quarter of 2022. As of September 30, 2022, we had $17.78 billion available and authorized for repurchases.
Cash, cash equivalents, and marketable securities – Cash, cash equivalents, and marketable securities were $41.78 billion as of September 30, 2022.
Long-term debt – Long-term debt was $9.92 billion as of September 30, 2022.
Headcount – Headcount was 87,314 as of September 30, 2022, an increase of 28% year-over-year.