Meta Platforms Financials
This is an article on the financial performance of the American company Meta Platforms (formerly Facebook, recognized in Russia as an extremist organization). The main article about the company is Meta Platforms.
2023
Meta continues to spend money on failed metaverse project, bringing billions in losses
According to the results of the third quarter of fiscal year 2023 (it was closed on September 30, 2023), Meta Platforms (recognized as an extremist organization; activities on the territory of the Russian Federation are prohibited) showed revenue in the amount of $34.15 billion. This is 23% more than last year's result, when $27.71 billion was received. Such data are provided in a report published on October 25, 2023. Learn more here.
VR division has brought Meta losses of $31.6 billion since the beginning of 2020
In the second quarter of 2023, the losses of the VR division of Reality Labs by Meta (recognized as an extremist organization; activities on the territory of the Russian Federation are prohibited) amounted to $3.74 billion. For comparison, a year earlier this group lost 2.81 billion. This was reported in the financial report released on July 26, 2023. Read more here.
Developing metaverse projects company brought Meta a loss of $4 billion
At the end of 2022, the losses of the VR division of Reality Labs of Meta (recognized as an extremist organization; activities on the territory of the Russian Federation are prohibited) amounted to $13.72 billion. For comparison: in 2021, the losses were less - $10.19 billion. Such data are reflected in the financial report, which was published on February 1, 2023. Read more here.
In the list of companies with the largest R&D costs
For Amazon shows the costs of technology and content (not R&D).
ByteDance statistics date back to 2021 (according to the Wall Street Journal)
2022
Increasing R&D costs
Q2 Revenue Decline
$48 billion cash on balance sheet
10th in the world in terms of capitalization
2021
Third place in the list of most visited sites
The company's accounts accumulated $48 billion
2019
Revenue growth by 27% to $70.7 billion, profit drop by 16% to $18.49 billion
In 2019, Facebook raised $70.7 billion, which is 27% more than a year ago. Advertising revenues of the company increased by the same 27% to $69.7 billion, and the rest of the sources of earnings brought social networks about $1 billion.
By the end of December 2019, 1.66 billion users entered the social network at least once a day, which is 8% more than a year earlier. The monthly audience exceeded 2.5 billion people, also increasing by 8% on an annualized basis.
If we take at least one of the Facebook services (the social network of the same name, Instagram, WhatsApp or Facebook Messenger), then the daily audience exceeds 2.26 billion people, and the monthly audience is 2.89 billion.
According to Reuters, growing revenue figures and the number of users indicate that Facebook's audience has not turned its back on the social network, despite numerous scandals that have recently occurred due to leaks of personal data and questions about the use of the social network to influence users' political preferences.
As of December 31, 2019, Facebook had a headcount of 44,942, up 26% from the state's size the year before.
Facebook's net profit at the end of 2019 was $18.49 billion, down 16% from the previous year.
On the day of the annual earnings, Facebook shares fell 7.2% in value as investors worried that times of soaring revenue and audience growth were behind them.
Facebook CFO David Wehner said that the company's revenue growth rate will decline for several reasons, including the high maturity of the company's business, concern about the sale of targeted advertising and the introduction of legislation to regulate privacy issues around the world.[1]
Among the 20 most profitable companies in the world
Advertising sales growth forecast to $67 billion
2018
Revenue growth by 37% to $55.84 billion
2018 Facebook ended with revenue of $55.84 billion, which is 37% more than in the previous year. That's despite several high-profile data breach and privacy scandals that have put the company at the heart of it.
Almost the entire turnover of Facebook falls on the advertising business: its volume increased by 38% and reached $55.01 billion. Advertising posted on mobile versions of Facebook accounted for 93% of this business, and in 2017 this share was measured at 89%.
In 2018, the company's net profit amounted to $22.11 billion, surpassing the one-year-old figure by 39%.
By the end of December 2018, 1.52 billion users logged into Facebook at least once a day, which is 9% more than a year earlier. The monthly audience of the social network also increased by 9% during this time - to 2.32 billion people.
About 2.7 billion people used Facebook, Instagram, WhatsApp or Facebook Messenger every month by the end of 2018. Of these, 2 billion people launched the service at least once a day.
In the United States and Canada, which remain the most profitable markets for Facebook, monthly audience grew to 242 million at the end of 2018 from 239 million a year earlier. In Europe, the figure for this period increased to 381 million from 370 million.
At the same time, Facebook was able to significantly increase revenue from each user in the United States and Canada - to $34.09 from $26.26 in 2017.
 | Our community and business continue to grow. We have fundamentally changed the way we run our company to focus on the biggest social issues, and we are increasing investment in creating new and inspiring ways for people to communicate , "said Facebook founder and CEO Mark Zuckerberg, whose words are cited in a press release. |  |
The stock market reacted very positively to Facebook's performance in 2018, which was overshadowed for the company by scandals surrounding users' personal data. After the publication of the statements, the company's shares rose in price by more than 10%. In 2018, social network quotes fell by almost 20%.[2]
Dynamics of changes in financial indicators by the third quarter
2017
Income growth and decrease in social network stay
In 2017, Facebook's revenue amounted to almost $40.7 billion, an increase of 47% compared to 2016. Net profit rose 56% to $15.9 billion.
By the end of 2017, the social network Facebook is used at least once a month by 2.13 billion people around the world, which is 14% more than a year earlier. The daily audience of the service also increased by 14%, amounting to 1.4 billion users. The analytical company FactSet expected an indicator of 1.41 billion.
At the same time, the duration of users' stay on Facebook decreased, which the company explained by changes in the service, which made it possible to reduce the number of viral videos.
| | Already in the last quarter, we made changes aimed at reducing the number of viral videos to ensure that people's time is well spent. In general, we made changes that reduced the time spent on Facebook by about 50 million hours every day, "said Mark Zuckerberg, founder and head of Facebook. | |
Reuters reports that audience activity may decline further after adjustments to the News Feed feed. In 2018, News Feed began to prioritize information shared by the user's friends and relatives, and the number of non-advertising posts from publishers and companies was reduced.
According to Wedbush analyst Michael Pachter, average revenue per ad on Facebook increased significantly (by 43% at the end of 2017), the quality of advertising has improved, so reducing the time of audience activity does not matter.
For the first time in history, the number of Facebook users who go to the social network every day in the United States and Canada decreased - in three months by 700 thousand to 184 million by the end of 2017.[3]
Growth in quarterly revenue by 44% to $9.32 billion and net profit by 71%
In July 2017, Facebook reported unaudited operating and financial results for the second quarter of 2017 (according to GAAP). Revenue growth amounted to 44.8% YoY to $9.32 billion. Advertising revenue accounted for more than 98% of all the company's cash receipts, while, in turn, about 87% of advertising revenue was earned on mobile devices. Facebook's profitability at the OIBDA level, due to outstripping revenue growth, was 3.5 percentage points higher than a year earlier and amounted to 55%. Net profit added 71% YoY to $3.9 [4].
According to the company's management, in the second quarter, the average cost of advertising increased by 24% YoY, and the number of advertising impressions increased by 19% YoY (i.e., insignificantly more than the increase in daily audience). For comparison, in the second quarter, Google's total number of so-called "paid clicks" increased by 52% yoy, but the cost of one click decreased by 23% yoy. With comparable quarterly revenue ($9.32 billion from Facebook and $26 billion from Google), the search engine is forced to dump hard enough at the price of advertising to attract new advertisers.
2016: Revenue growth of 57%
Total revenue Facebook for 2016 is $27.64 billion, which is 57% more than in the previous year. Net profit for 2016 reached $10.22 billion, which is 177% more than profit for 2015.
2013: Revenue growth of 55%
The revenue of the social network in 2013 increased by 55% - to 7.87 billion. dollars The social network earned $3.15 billion on mobile advertising, or 40% of all revenue in 2013. Net income Facebook under US GAAP amounted to $1.5 billion at the end of 2013, exceeding 28 times last year's figure of $53 million, the company said. Facebook's full-year earnings per share are estimated at 0.6 dollar , down from $0.01 the previous year.
2011:88% revenue growth to $3.7 billion
In 2011, the company's revenue reached $3.7 billion. Revenue growth compared to 2010 was 88%. Profit in 2011 amounted to $1 billion. Compared to 2010, the growth of this indicator was 65%.
Earlier, eMarketer predicted that revenues from online advertising on Facebook in 2011 will amount to $4.05 billion, having more than doubled compared to 2010.
Mainly, Facebook's revenue consists of payment for placing ads on its pages (85% of the total value in 2011). Since the sale of virtual goods in 2011, the network has received 15% of total revenue. In addition, a small part of the funds came from application developers.
Facebook's profitability in 2011 reached 27%, which is slightly more than Google's (26%).
- Prior to the official announcement of the results in February 2012, Gawker published in November 2011 a Facebook finance report received from an anonymous source within the company. According to Gawker, Facebook generated $2.5 billion in revenue in the first nine months of 2011. This figure is noticeably less than the forecast of eMarketer analysts, who in their report predicted Facebook's full-year revenues of $4.27 billion.
Facebook's operating profit for the January-September period was $1.2 billion, while its net profit was $714 million, the report said. Facebook representatives declined to comment on this information.
Gawker also published data on Facebook shareholders. It turned out that the founder of the social network Mark Zuckerberg owns only 24% of the company's shares. Another 30% of the shares belong to various of its employees. 10% of Facebook controls the Russian investment fund Digital Sky Technologies. Microsoft owns 1.3% of the company so far.
2010: Profit - $606 million
In 2010, the profit amounted to $606 million.
Revenue (9 months of 2010) - $1.2 billion, net profit - $355 million.
The market value of the social network Facebook has already reached $50 billion, according to the price of the company's shares in the secondary market. According to TechCrunch on the SecondMarket exchange (a special exchange for trading shares of private companies that are not participating in public trading), about 1.9 million Facebook shares were sold at a price of $20.76 per share. Thus, the total cost of Facebook is already estimated at about $50 billion. This is an absolute record for the world's largest social network. According to analysts, Facebook is already worth about a quarter of Google's market value and is approaching Amazon in this indicator. The market value of the online retail giant is now estimated at $80 billion.
The revenues of the social network Facebook in 2010 should be about $2 billion, which is $500 million more than previously expected. According to analysts, the company's earnings are growing rapidly due to the fact that large brands such as Coca-Cola or Adidas are increasingly advertised on social networks. In October 2010, Facebook also managed to bypass the Yahoo portal in terms of the number of users worldwide. Now the social network ranks third in this indicator after the resources of Google and Microsoft. In 2010, Facebook is the leading social network in the world with an audience of almost 600 million users and continues to increase its presence in different countries. According to Alexa and Google Trends for Websites, from June to December 2010, Facebook in a number of countries managed to prevail over previously leading local social networks: in particular, in Hungary (the former leader is the Iwiw social network), Poland (Nasza-Klasa), Mongolia (Hi5), Paraguay and India (Orkut from Google). According to the same data, only 10 countries remain in the world, where other social networks are in the lead. Among them - Russia, China, Brazil, Iran, Japan, Vietnam.
2009: Revenue of $700 million
Facebook does not disclose financial performance. According to the online resource Insidefacebook, in 2009 its revenue was about $700 million. In 2010, the company expects revenue of $1.2-2 billion, The Wall Street Journal reported in March, citing sources in the company.
According to the online publication Techcrunch, in March, Elevation Partners spent about $90 million on buying up ordinary shares of the network, raising up to 0.7% of the shares ($13 billion for the entire company). Trading SharesPost, based on an analysis of offers and prices of recent transactions, estimated Facebook's capitalization at $19.2 billion.
2008: Turnover - $30 million
The resource turnover according to 2008 data is $30 million.
In five years, the social network will make billions dollars a year, board member Facebook Mark Andrissen told Time Magazine in an interview. True, now in terms of the profitability of services, it is inferior even to some Russian projects, notes. Yuri Milner
Notes
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