META Q2 2020 Earnings

Call Details

• Call Title: Meta Platforms, Inc. Q2 2020 Earnings Call
• Date: July 30, 2020 at 10:00 PM UTC
• Management Team:
  • Mark Zuckerberg (Chief Executive Officer)
  • Sheryl Sandberg (Chief Operating Officer)
  • Dave Wehner (Chief Financial Officer)
  • Deborah Crawford (Vice President of Investor Relations)

Call Summary

Financial Performance

• Q2 total revenue was $18.7B, up 11% year over year and up 12% on a constant currency basis.
• Q2 advertising revenue was $18.3B, up 10% year over year and up 12% on a constant currency basis.
• Other revenue was $366M, up 40% year over year and driven primarily by Oculus and Portal sales.
• Facebook DAUs reached 1.79B, up 12% year over year, and DAUs represented approximately 66% of 2.7B Facebook MAUs in June.
• Family metrics in June were approximately 2.5B daily users of at least one service and approximately 3.1B monthly users of at least one service.
• Total ad impressions increased 40% year over year while average price per ad decreased 21% year over year.
• Operating income was $6.0B with a 32% operating margin, net income was $5.2B, and diluted EPS was $1.80.

Guidance

• Company expects Facebook DAUs and MAUs to be flat or slightly down in most regions in Q3 compared to Q2 as shelter-in-place eases.
• In the first three weeks of July, year-over-year ad revenue growth was approximately in line with Q2 growth of 10%, and Q3 ad revenue growth is expected to be roughly similar to that July performance.
• Full-year 2020 total expenses are expected to be in the range of $52B to $55B, narrowed from the prior $52B to $56B range.
• Capital expenditures for 2020 are expected to be approximately $16B and are at the high end of the previous $15B to $16B range.
• Full-year 2020 tax rate is expected to be in the mid-teens percent with potential quarterly fluctuations.
• Key downside factors called out for H2 include macroeconomic uncertainty, normalization of engagement as regions reopen, advertiser boycott impacts, and targeting and measurement headwinds including regulatory and mobile platform changes.