META Q2 2021 Earnings

Call Details

• Call Title: Meta Platforms, Inc. Q2 2021 Earnings Call
• Date: July 28, 2021 at 9:00 PM UTC
• Management Team:
  • Mark Zuckerberg (CEO)
  • Sheryl Sandberg (COO)
  • Dave Wehner (Chief Financial Officer)

Call Summary

Financial Performance

• Total revenue for Q1 was $26.2B, representing a 48% year-over-year increase and 44% growth on a constant currency basis.
• Q1 ad revenue was $25.4B, up 46% year-over-year and up 42% on a constant currency basis.
• Other revenue was $732M, up 146% year-over-year, driven primarily by Quest 2 hardware sales.
• Facebook daily active users reached 1.88B, which was up 8% year-over-year, and DAUs represented approximately 66% of 2.85B MAUs.
• Family metrics estimated approximately 2.7B daily users and approximately 3.4B monthly users in March based on recent user surveys.
• Q1 total expenses were $14.8B, up 25% year-over-year, driving operating income of $11.4B and an operating margin of 43% for the quarter.
• Q1 net income was $9.5B, or $3.30 per share, and free cash flow for the quarter was $7.8B.

Guidance

• Company expects Q2 2021 year-over-year total revenue growth to remain stable or modestly accelerate relative to Q1 2021 growth.
• The company expects 2021 total expenses to be in the range of $70 to $73B, revised up from a prior outlook of $68 to $73B.
• The company expects 2021 capital expenditures to be in the range of $19 to $21B, revised down from a prior estimate of $21 to $23B.
• Full year 2021 tax rate is expected to be in the high teens.
• The company continues to expect increased ad targeting headwinds in 2021 from regulatory and platform changes such as iOS 14.5, which is factored into the outlook.
• The company expects advertising revenue growth for the remainder of 2021 to be primarily driven by price rather than impression growth.