META Q4 2021 Earnings

Call Details

• Call Title: Meta Platforms, Inc. Q4 2021 Earnings Call
• Date: February 2, 2022 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

• Q4 total revenue was $33.7B, up 20% year-over-year and up 21% on a constant currency basis.
• Full-year 2021 total revenue grew 37% to nearly $118B year-over-year.
• Q4 ad revenue was $32.6B, which was up 20% year-over-year, and Family of Apps ad revenue was $32.6B up 20% (21% constant currency).
• Q4 operating income was $12.6B, representing a 37% operating margin, and net income was $10.3B or $3.67 per share.
• Q4 total expenses were $21.1B, up 38% year-over-year, with R&D up 35% and G&A up 107% driven by legal-related and employee costs.
• Family of Apps operating income was $15.9B, representing a 48% operating margin, while Reality Labs reported Q4 revenue of $877M and an operating loss of $3.3B.
• Key user metrics disclosed were approximately 2.8B daily users of at least one Family of Apps in December and approximately 3.6B monthly users, with Facebook DAUs at 1.93B, up 5% year-over-year.

Guidance

• Q1 2022 total revenue is expected in the range of $27B to $29B, representing 3% to 11% year-over-year growth.
• The company expects 2022 total expenses to be in the range of $90B to $95B, updated from a prior range of $91B to $97B.
• 2022 capital expenditures are forecast to be $29B to $34B, unchanged from the prior estimate.
• The firm expects its full-year 2022 tax rate to be similar to its full-year 2021 rate, absent changes to U.S. tax laws.
• Guidance explicitly calls for continued headwinds to both impression and price growth due to competition, a shift to video formats like Reels, iOS-related targeting and measurement headwinds, and macroeconomic pressures.
• The company indicated that Reality Labs operating losses are expected to increase meaningfully in 2022 relative to 2021 levels.