META Q4 2019 Earnings

Call Details

• Call Title: Meta Platforms, Inc. Q4 2019 Earnings Call
• Date: January 29, 2020 at 10:00 PM UTC
• Management Team:
  • Deborah Crawford (Vice President of Investor Relations)
  • Mark Zuckerberg (CEO)
  • Sheryl Sandberg (COO)
  • Dave Wehner (Chief Financial Officer)

Call Summary

Financial Performance

• Q4 total revenue was $21.1B, up 25% year over year and up 26% on a constant currency basis.
• Q4 ad revenue was $20.7B, increasing 25% year over year and up 26% on a constant currency basis.
• Full year 2019 revenue was $71B, up 27% year over year, and full-year ad revenue grew 27% compared to 2018.
• Q4 net income was $7.3B, or $2.56 per share, and full-year net income exceeded $18B.
• Total expenses in Q4 were $12.2B, up 34% year over year, with cost of revenue up 25%, R&D up 36%, marketing and sales up 23%, and G&A up 87% including a $550M Illinois Biometric settlement charge.
• Total ad impressions increased 31% year over year in Q4 while average price per ad decreased 5% year over year.
• Other revenue was $346M in Q4, up 26% year over year driven by sales of Oculus Quest.
• Headcount ended 2019 at approximately 45,000 full-time employees, up 26% year over year.

Guidance

• Q1 2020 reported year-over-year revenue growth rate is expected to decelerate by a low to mid single-digit percentage point compared to Q4 2019.
• The majority of the revenue impact from privacy and ad-targeting headwinds is expected to lie in front of the company rather than behind it.
• 2019 outlook for 2020 total expenses is unchanged and expected to be in the range of $54B to $59B.
• 2020 capital expenditures guidance is unchanged and expected to be $17B to $19B.
• The 2020 effective tax rate is expected to be in the high teens.
• Facebook-only community metrics disclosure will continue through late 2020 and family metrics are now included in SEC filings and the investor slide presentation.