11/23/2023 0 Comments Buy metric form taps![]() ![]() Meta has a robust balance sheet with nearly $54 billion in cash and $18 billion in long-term debt. The company has adapted to major shifts, from mobile transition to implementing Stories and now short video formats.ĭespite predictions of Facebook's demise, the platform continues to add tens of millions of new users and could benefit from a potential TikTok ban in the US. User growth and engagement are critical to Meta's ongoing success. Stock buybacks were only $0.9 billion in Q2, compared to $9.22 billion in Q1, showing that META shares are not deemed as attractive now by management. Headcounts declined by 14% Y/Y and by 7% Q/Q to 71,469 in the “year of efficiency” with a leaner organization. But the big driver is the success of Reels monetization. It’s partially explained by a weaker comp (Q3 FY22 saw revenue decline by 4.5% Y/Y with factors such as the first full quarter impacted by the war in Ukraine) and 3 percentage points of currency tailwinds. The high-end of guidance is $34.5 billion in Q3 FY23, implying an +25% growth Y/Y. Q3 FY23 Guidance was well ahead of expectations. Excluding them, the operating margin would have increased by 8 percentage points. The operating margin was flat despite non-recurring legal expenses ($1.9 billion) and restructuring charges ($0.8 billion). ![]() Management already forecasted these losses would expand in FY23 and FY24 (more on that in a minute). Reality Labs lost $7.7 billion in H1 FY23 and $13.7 billion in FY22. Pinterest (PINS) ARPU declined by 1% Y/Y to $1.53. Snap (SNAP) ARPU declined by 16% Y/Y to $2.69. This is particularly noteworthy when looking at other public companies in this space. So incremental engagement is leading to more revenue per user. The overall revenue per person grew +5% Y/Y to $8.32. Despite TikTok and other platforms gaining popularity, users spend more time on average using Meta's apps (and view more ads as a result). Reels drove strong engagement, with ad impressions growing by +32% across FoA (compared to +26% Y/Y in Q1 FY23 and the fourth consecutive quarter of acceleration). Pinterest had 465 million MAUs (+2 million Q/Q). Snap reached 397 million DAUs (+14 million Q/Q). Facebook is still adding more users than some of its competitors. Facebook added 27 million DAUs sequentially to its existing 2-billion-user base, indicating that user exodus has yet to materialize. All metrics saw accelerating growth in users for a second consecutive quarter. $86-90 billion previously) due to unexpected legal-related expenses recorded in Q2. Total expenses in FY23 are expected to be $88-$91 billion (vs. Q3 FY23 revenue is forecasted to be $32-$34.5 billion ($2 billion ahead of consensus), or about +20% Y/Y in the mid-range, a significant acceleration. Operating cash flow was $17.3 billion (54% margin, +12pp Y/Y).įree cash flow was $11.0 billion (34% margin, +19pp Y/Y).Ĭash, cash equivalent, and marketable securities: $53.5 billion. a $4.0 billion loss in Q1 FY23).Įxpenses included non-recurring items such as: Operating margin was 29% (+0pp Y/Y, +4pp Q/Q).įoA operating profit was $13.1 billion (41% margin, +2pp Y/Y). RL revenue declined -39% Y/Y to $0.3 billion. Revenue grew +11% Y/Y to $32.0 billion ($1.2 billion beat).įoA revenue grew +12% Y/Y to $31.7 billion. It gets a bit technical if we look at the detailed metrics.įacebook metrics include only Facebook and Messenger:įamily metrics include users who visited at least one of the apps in the Family segment:įamily metrics represent the company’s estimate of the number of unique people using at least one of the apps without double-counting. Revenue increases when more users see more ads (or ads at a higher price). Meta’s advertising revenue comes from two elements: Reality Labs (RL) : Virtual reality hardware and supporting software.Ībout 99% of Meta’s revenue comes from FoA and advertising. As a helpful reminder, here's a quick rundown of the key metrics and their meanings.įamily of Apps (FoA) : Facebook, Instagram, Messenger, and Whatsapp. Before we begin, I know the numerous acronyms and metrics associated with Meta's business can be confusing. ![]()
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