Meta Platforms reported financial results for the third quarter below expectations
Meta reported a second straight quarterly revenue decline and missed analysts’ expectations on poor earnings per share and net income results. The stock plunged almost 20% after-hours trading.
Third Quarter 2022 Operational and Other Financial Highlights
• 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 increased by 17% year-over-year and the average price per ad decreased by 18% yearover-year.
• Revenue – Revenue was $27.71 billion, a decrease of 4% year-over-year. 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 office facilities footprint with anticipated operating needs.
• Capital expenditures – Capital expenditures, including principal payments on finance leases, were $9.52 billion for the third quarter of 2022.
• Share repurchases – Meta repurchased $6.55 billion of our Class A common stock in the third quarter of 2022.
• Cash, cash equivalents, and marketable securities – Cash, cash equivalents, and marketable securities were $41.78 billion as of September 30, 2022.
• Headcount – Headcount was 87,314 as of September 30, 2022, an increase of 28% year-over-year.
„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.”
Meta expect fourth quarter 2022 total revenue to be in the range of $30-32.5 billion. 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.
The company is making significant changes across the board to operate more efficiently and holds some teams flat in terms of headcount, shrinking others and investing headcount growth only in areas with highest priorities. As a result, Meta expect headcount at the end of 2023 will be approximately in-line with third quarter 2022 levels.
Total expenses will be in the range of $85-87 billion, updated from $85-88 billion. This includes an estimated $900 million in additional charges related to consolidating office facilities footprint. Moreover, Meta anticipates full-year 2023 total expenses will be in the range of $96-101 billion.
Reality Labs operating losses in 2023 will grow significantly year-over-year. Beyond 2023, Meta expects to pace Reality Labs investments
such that can achieve goal of growing overall company operating income in the long run.