META Q2 2022 Earnings

Call Details

• Call Title: Meta Platforms, Inc. Q2 2022 Earnings Call
• Date: July 27, 2022 at 9:00 PM UTC
• Management Team:
  • Deborah Crawford (Vice President of Investor Relations)
  • Mark Zuckerberg (Chief Executive Officer)
  • Sheryl Sandberg (Chief Operating Officer)
  • Dave Wehner (Chief Financial Officer)

Call Summary

Financial Performance

• Q2 total revenue was $28.8B, down 1% year over year and up 3% on a constant currency basis.
• Q2 family of apps revenue was $28.2B, down 1% year over year and up 3% on a constant currency basis.
• Q2 total expenses were $20.5B, up 22% year over year, resulting in operating income of $8.4B and a 29% operating margin.
• Net income was $6.7B or $2.46 per share in Q2.
• Q2 capital expenditures were $7.7B driven by servers, data centers, and AI infrastructure investments.
• Reality Labs revenue was $452M, up 48% year over year, and Reality Labs operating loss was $2.8B in Q2.
• Ad impressions increased 15% year over year while average price per ad decreased 14% year over year.
• Daily active users (DAUs) across the family of apps were approximately 2.9B and monthly active users (MAUs) were approximately 3.6B in June, with Facebook DAUs at 1.97B, up 3% year over year.

Guidance

• Third quarter 2022 total revenue outlook was provided in a range of $26.0B to $28.5B.
• The Q3 outlook assumes foreign currency will be an approximately 6% headwind to year-over-year total revenue growth based on current rates.
• The company anticipates Q3 Reality Labs revenue to be lower than Q2 Reality Labs revenue.
• Full year 2022 total expenses are expected in the range of $85B to $88B, narrowed from a prior $87B to $92B range.
• Full year 2022 capital expenditures are expected in the range of $30B to $34B, narrowed from a prior $29B to $34B range.
• The full year 2022 tax rate is expected to be in the high teens absent changes to US tax law.