Meta Reports Fourth Quarter and Full Year 2021 Results


Press: Ryan Moore

[email protected] / about.fb.com/news/

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 the COVID-19 pandemic on our business and financial results; 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; 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 Quarterly Report on Form 10-Q filed with the SEC on October 26, 2021, 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 Annual Report on Form 10-K for the year ended December 31, 2021. In addition, please note that the date of this press release is February 2, 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 and full year ended December 31, 2021 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 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.

META PLATFORMS, INC.


CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In millions, except for per share amounts)

(Unaudited)



Three Months Ended December 31,


Twelve Months Ended December 31,


2021


2020


2021


2020

Revenue

$          33,671


$          28,072


$         117,929


$           85,965

Costs and expenses:








Cost of revenue

6,348


5,210


22,649


16,692

Research and development

7,046


5,208


24,655


18,447

Marketing and sales

4,387


3,280


14,043


11,591

General and administrative

3,305


1,599


9,829


6,564

Total costs and expenses

21,086


15,297


71,176


53,294

Income from operations

12,585


12,775


46,753


32,671

Interest and other income, net

117


280


531


509

Income before provision for income taxes

12,702


13,055


47,284


33,180

Provision for income taxes

2,417


1,836


7,914


4,034

Net income

$          10,285


$          11,219


$           39,370


$           29,146

Earnings per share attributable to Class A and Class B








common stockholders:








Basic

$               3.72


$               3.94


$              13.99


$              10.22

Diluted

$               3.67


$               3.88


$              13.77


$              10.09

Weighted-average shares used to compute earnings per








share attributable to Class A and Class B common








stockholders:








Basic

2,765


2,850


2,815


2,851

Diluted

2,799


2,890


2,859


2,888

Share-based compensation expense included in costs and








expenses:








Cost of revenue

$                149


$                120


$                 577


$                 447

Research and development

1,882


1,361


7,106


4,918

Marketing and sales

206


175


837


691

General and administrative

169


128


644


480

Total share-based compensation expense

$             2,406


$             1,784


$              9,164


$              6,536

META PLATFORMS, INC.


CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)



December 31,
2021


December 31,
2020

Assets




Current assets:




Cash and cash equivalents

$                  16,601


$                  17,576

Marketable securities

31,397


44,378

Accounts receivable, net

14,039


11,335

Prepaid expenses and other current assets

4,629


2,381

Total current assets

66,666


75,670

Equity investments

6,775


6,234

Property and equipment, net

57,809


45,633

Operating lease right-of-use assets

12,155


9,348

Intangible assets, net

634


623

Goodwill

19,197


19,050

Other assets

2,751


2,758

Total assets

$                165,987


$                159,316





Liabilities and stockholders' equity




Current liabilities:




Accounts payable

$                    4,083


$                    1,331

Partners payable

1,052


1,093

Operating lease liabilities, current

1,127


1,023

Accrued expenses and other current liabilities

14,312


11,152

Deferred revenue and deposits

561


382

Total current liabilities

21,135


14,981

Operating lease liabilities, non-current

12,746


9,631

Other liabilities

7,227


6,414

Total liabilities

41,108


31,026

Commitments and contingencies




Stockholders' equity:




Common stock and additional paid-in capital

55,811


50,018

Accumulated other comprehensive income (loss)

(693)


927

Retained earnings

69,761


77,345

Total stockholders' equity

124,879


128,290

Total liabilities and stockholders' equity

$                165,987


$                159,316

META PLATFORMS, INC.


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)



Three Months Ended
December 31,


Twelve Months Ended
December 31,


2021


2020


2021


2020

Cash flows from operating activities








Net income

$      10,285


$      11,219


$     39,370


$     29,146

Adjustments to reconcile net income to net cash provided by








operating activities:








Depreciation and amortization

2,014


1,863


7,967


6,862

Share-based compensation

2,406


1,784


9,164


6,536

Deferred income taxes

748


(377)


609


(1,192)

Other

34


62


(127)


118

Changes in assets and liabilities:








Accounts receivable

(2,038)


(3,059)


(3,110)


(1,512)

Prepaid expenses and other current assets

817


225


(1,750)


135

Other assets

(165)


(25)


(349)


(34)

Accounts payable

876


(56)


1,436


(17)

Partners payable

151


278


(12)


178

Accrued expenses and other current liabilities

2,462


2,218


3,357


(1,054)

Deferred revenue and deposits

100


(3)


187


108

Other liabilities

414


(89)


941


(527)

Net cash provided by operating activities

18,104


14,040


57,683


38,747

Cash flows from investing activities








Purchases of property and equipment

(5,370)


(4,613)


(18,567)


(15,115)

Purchases of marketable securities

(6,093)


(5,737)


(30,407)


(33,930)

Sales of marketable securities

16,340


2,008


31,671


11,787

Maturities of marketable securities

1,598


3,260


10,915


13,984

Purchases of equity investments

(2)


(59)


(47)


(6,361)

Acquisitions of businesses, net of cash acquired, and purchases of








intangible assets

(521)


(5)


(851)


(388)

Other investing activities

(123)


(27)


(284)


(36)

Net cash provided by (used in) investing activities

5,829


(5,173)


(7,570)


(30,059)

Cash flows from financing activities








Taxes paid related to net share settlement of equity awards

(1,507)


(1,121)


(5,515)


(3,564)

Repurchases of Class A common stock

(20,063)


(1,928)


(44,537)


(6,272)

Principal payments on finance leases

(172)


(205)


(677)


(604)

Net change in overdraft in cash pooling entities


48


14


24

Other financing activities



(13)


124

Net cash used in financing activities

(21,742)


(3,206)


(50,728)


(10,292)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(130)


314


(474)


279

Net increase (decrease) in cash, cash equivalents, and restricted cash

2,061


5,975


(1,089)


(1,325)

Cash, cash equivalents, and restricted cash at beginning of the period

14,804


11,979


17,954


19,279

Cash, cash equivalents, and restricted cash at end of the period

$      16,865


$      17,954


$     16,865


$     17,954









Reconciliation of cash, cash equivalents, and restricted cash to the condensed








consolidated balance sheets








Cash and cash equivalents

$      16,601


$      17,576


$     16,601


$     17,576

Restricted cash, included in prepaid expenses and other current assets

149


241


149


241

Restricted cash, included in other assets

115


137


115


137

Total cash, cash equivalents, and restricted cash

$      16,865


$      17,954


$     16,865


$     17,954

META PLATFORMS, INC.


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)



Three Months Ended
December 31,


Twelve Months Ended
December 31,


2021


2020


2021


2020

Supplemental cash flow data








Cash paid for income taxes, net

$            606


$        1,107


$        8,525


$        4,229

Non-cash investing and financing activities:








Property and equipment in accounts payable and accrued expenses








and other current liabilities

$         3,404


$         2,201


$         3,404


$         2,201

Acquisition of businesses in accrued expenses and other current








liabilities and other liabilities

$              73


$            118


$              73


$            118

Other current assets through financing arrangement in accrued expenses








and other current liabilities

$            508


$              —


$            508


$              —

Repurchases of Class A common stock in accrued expenses and other








current liabilities

$            340


$              68


$            340


$              68

Reconciliation of GAAP to Non-GAAP Results


(In millions, except percentages)

(Unaudited)



Three Months Ended
December 31,


Twelve Months Ended
December 31,


2021


2020


2021


2020

GAAP revenue

$       33,671


$       28,072


$     117,929


$       85,965

Foreign exchange effect on 2021 revenue using 2020 rates

307




(1,640)



Revenue excluding foreign exchange effect

$       33,978




$     116,289



GAAP revenue year-over-year change %

20%




37%



Revenue excluding foreign exchange effect year-over-year change %

21%




35%



GAAP advertising revenue

$       32,639


$       27,187


$     114,934


$       84,169

Foreign exchange effect on 2021 advertising revenue using 2020 rates

306




(1,620)



Advertising revenue excluding foreign exchange effect

$       32,945




$     113,314



GAAP advertising revenue year-over-year change %

20%




37%



Advertising revenue excluding foreign exchange effect year-over-year change %

21%




35%











Net cash provided by operating activities

$       18,104


$       14,040


$       57,683


$       38,747

Purchases of property and equipment

(5,370)


(4,613)


(18,567)


(15,115)

Principal payments on finance leases

(172)


(205)


(677)


(604)

Free cash flow (1)

$       12,562


$         9,222


$       38,439


$       23,028


____________________________________

(1) Free cash flow in the year ended December 31, 2020 reflects the $5.0 billion FTC settlement that was paid in April 2020.

Meta Reports Fourth Quarter and Full Year 2021 Results View original content to download multimedia:https://www.prnewswire.com/news-releases/meta-reports-fourth-quarter-and-full-year-2021-results-301474305.html

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