EX-99.1 2 meta-12312023xexhibit991.htm EX-99.1 Document


Meta Reports Fourth Quarter and Full Year 2023 Results; Initiates Quarterly Dividend

MENLO PARK, Calif. – February 1, 2024 – Meta Platforms, Inc. (Nasdaq: META) today reported financial results for the quarter and full year ended December 31, 2023.

"We had a good quarter as our community and business continue to grow," said Mark Zuckerberg, Meta founder and CEO. "We've made a lot of progress on our vision for advancing AI and the metaverse."

Fourth Quarter and Full Year 2023 Financial Highlights
Three Months Ended December 31, % ChangeTwelve Months Ended December 31,% Change
In millions, except percentages and per share amounts2023202220232022
Revenue$40,111 $32,165 25 %$134,902 $116,609 16 %
Costs and expenses23,727 25,766 (8)%88,151 87,665 1 %
Income from operations$16,384 $6,399 156 %$46,751 $28,944 62 %
Operating margin41 %20 %35 %25 %
Provision for income taxes$2,791 $1,497 86 %$8,330 $5,619 48 %
Effective tax rate17 %24 %18 %19 %
Net income$14,017 $4,652 201 %$39,098 $23,200 69 %
Diluted earnings per share (EPS)$5.33 $1.76 203 %$14.87 $8.59 73 %

Fourth Quarter and Full Year 2023 Operational and Other Financial Highlights

•Family daily active people (DAP) – DAP was 3.19 billion on average for December 2023, an increase of 8% year-over-year.
•Family monthly active people (MAP) – MAP was 3.98 billion as of December 31, 2023, an increase of 6% year-over-year.
•Facebook daily active users (DAUs) – DAUs were 2.11 billion on average for December 2023, an increase of 6% year-over-year.
•Facebook monthly active users (MAUs) – MAUs were 3.07 billion as of December 31, 2023, an increase of 3% year-over-year.
•Ad impressions and price per ad – In the fourth quarter of 2023, ad impressions delivered across our Family of Apps increased by 21% year-over-year and the average price per ad increased by 2% year-over-year. For the full year 2023, ad impressions increased by 28% year-over-year and the average price per ad decreased by 9% year-over-year.
•Revenue – Revenue was $40.11 billion and $134.90 billion, an increase of 25% and 16% year-over-year for the fourth quarter and full year 2023, respectively. Had foreign exchange rates remained constant with the same periods of 2022, revenue would have been $816 million and $374 million lower, an increase of 22% and 15% on a constant currency basis for the fourth quarter and full year 2023, respectively.
•Costs and expenses – Total costs and expenses were $23.73 billion and $88.15 billion for the fourth quarter and full year 2023, a decrease of 8% and an increase of 1% year-over-year, respectively. Restructuring charges included in costs and expenses were $1.15 billion and $3.45 billion for the fourth quarter and full year 2023, respectively.
•Capital expenditures – Capital expenditures, including principal payments on finance leases, were $7.90 billion and $28.10 billion for the fourth quarter and full year 2023, respectively.
•Share repurchases – We repurchased $6.32 billion and $20.03 billion of our Class A common stock in the fourth quarter and full year 2023, respectively. As of December 31, 2023, we had $30.93 billion available and authorized for repurchases. We also announced a $50 billion increase in our share repurchase authorization today.
•Cash, cash equivalents, and marketable securities – Cash, cash equivalents, and marketable securities were $65.40 billion as of December 31, 2023. Free cash flow was $11.50 billion and $43.01 billion for the fourth quarter and full year 2023, respectively.
•Long-term debt – Long-term debt was $18.39 billion as of December 31, 2023.
•Headcount – Headcount was 67,317 as of December 31, 2023, a decrease of 22% year-over-year.
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Meta Initiates Quarterly Dividend

Today, Meta's board of directors declared a cash dividend of $0.50 per share of our outstanding common stock (including both Class A common stock and Class B common stock), payable on March 26, 2024 to stockholders of record as of the close of business on February 22, 2024. We intend to pay a cash dividend on a quarterly basis going forward, subject to market conditions and approval by our board of directors.

Restructuring

Beginning in 2022, we initiated several measures to pursue greater efficiency and to realign our business and strategic priorities. As of December 31, 2023, we have completed the data center initiatives and the employee layoffs, and substantially completed the facilities consolidation initiatives.

A summary of our restructuring charges, including subsequent adjustments, for the three and twelve months ended December 31, 2023 by major activity type is as follows (in millions):
Three Months Ended December 31, 2023Twelve Months Ended December 31, 2023
Facilities ConsolidationSeverance and Other Personnel Costs Data Center Assets TotalFacilities ConsolidationSeverance and Other Personnel Costs Data Center Assets Total
Cost of revenue$86 $— $7 $93 $177 $— $(224)$(47)
Research and development710 28 — 738 1,581 413 — 1,994 
Marketing and sales162 16 — 178 396 307 — 703 
General and administrative142 (3)— 139 352 450 — 802 
Total$1,100 $41 $7 $1,148 $2,506 $1,170 $(224)$3,452 

During the three and twelve months ended December 31, 2022, we recorded total restructuring charges of $4.20 billion and $4.61 billion, respectively.


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CFO Outlook Commentary

We expect first quarter 2024 total revenue to be in the range of $34.5-37 billion. Our guidance assumes foreign currency is neutral to year-over-year total revenue growth, based on current exchange rates.

We expect full-year 2024 total expenses to be in the range of $94-99 billion, unchanged from our prior outlook. We continue to expect a few factors to be drivers of total expense growth in 2024:

•First, we expect higher infrastructure-related costs this year. Given our increased capital investments in recent years, we expect depreciation expenses in 2024 to increase by a larger amount than in 2023. We also expect to incur higher operating costs from running a larger infrastructure footprint.

•Second, we anticipate growth in payroll expenses as we work down our current hiring underrun and add incremental talent to support priority areas in 2024, which we expect will further shift our workforce composition toward higher-cost technical roles.

•Finally, for Reality Labs, we expect operating losses to increase meaningfully year-over-year due to our ongoing product development efforts in augmented reality/virtual reality and our investments to further scale our ecosystem.

We anticipate our full-year 2024 capital expenditures will be in the range of $30-37 billion, a $2 billion increase of the high end of our prior range. We expect growth will be driven by investments in servers, including both AI and non-AI hardware, and data centers as we ramp up construction on sites with our previously announced new data center architecture. Our updated outlook reflects our evolving understanding of our artificial intelligence (AI) capacity demands as we anticipate what we may need for the next generations of foundational research and product development. While we are not providing guidance for years beyond 2024, we expect our ambitious long-term AI research and product development efforts will require growing infrastructure investments beyond this year.

Absent any changes to U.S. tax law, we expect our full-year 2024 tax rate to be in the mid-teens.

In addition, we continue to monitor the active regulatory landscape, including the increasing legal and regulatory headwinds in the EU and the U.S. that could significantly impact our business and our financial results. Of note, the Federal Trade Commission is seeking to substantially modify our existing consent order and impose additional restrictions on our ability to operate. We are contesting this matter, but if we are unsuccessful it would have an adverse impact on our business.

This was a pivotal year for our company. We increased our operating discipline, delivered strong execution across our product priorities, and improved advertising performance for the businesses who rely on our services. We will look to build on our progress in each of those areas in 2024 while advancing our ambitious, longer-term efforts in AI and Reality Labs.
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Webcast and Conference Call Information

Meta will host a conference call to discuss the results at 1:30 p.m. PT / 4:30 p.m. ET today. The live webcast of Meta's earnings conference call can be accessed at investor.fb.com, along with the earnings press release, financial tables, and slide presentation. Meta uses the investor.fb.com and about.fb.com/news/ websites as well as Mark Zuckerberg's Facebook Page (facebook.com/zuck), Instagram account (instagram.com/zuck) and Threads profile (threads.net/zuck) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Following the call, a replay will be available at the same website. A telephonic replay will be available for one week following the conference call at +1 (800) 770-2030 or +1 (647) 362-9199, conference ID 8032328.

Transcripts of conference calls with publishing equity research analysts held today will also be posted to the investor.fb.com website.

About Meta

Meta builds technologies that help people connect, find communities, and grow businesses. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram, and WhatsApp further empowered billions around the world. Now, Meta is moving beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology.

Contacts

Investors:
Kenneth Dorell
investor@meta.com / investor.fb.com

Press:
Ryan Moore
press@meta.com / about.fb.com/news/
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Forward-Looking Statements

This press release contains forward-looking statements regarding our future business plans and expectations. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: the impact of macroeconomic conditions on our business and financial results, including as a result of geopolitical events; our ability to retain or increase users and engagement levels; our reliance on advertising revenue; our dependency on data signals and mobile operating systems, networks, and standards that we do not control; changes to the content or application of third-party policies that impact our advertising practices; risks associated with new products and changes to existing products as well as other new business initiatives, including our metaverse efforts; our emphasis on community growth and engagement and the user experience over short-term financial results; maintaining and enhancing our brand and reputation; our ongoing privacy, safety, security, and content review efforts; competition; risks associated with government actions that could restrict access to our products or impair our ability to sell advertising in certain countries; litigation and government inquiries; privacy, legislative, and regulatory concerns or developments; risks associated with acquisitions; security breaches; our ability to manage our scale and geographically-dispersed operations; and market conditions or other factors affecting the payment of dividends. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption "Risk Factors" in our Quarterly Report on Form 10-Q filed with the SEC on October 26, 2023, which is available on our Investor Relations website at investor.fb.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Annual Report on Form 10-K for the year ended December 31, 2023. In addition, please note that the date of this press release is February 1, 2024, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

For a discussion of limitations in the measurement of certain of our community metrics, see the section entitled "Limitations of Key Metrics and Other Data" in our most recent quarterly or annual report filed with the SEC.

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: revenue excluding foreign exchange effect, advertising revenue excluding foreign exchange effect, and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.

We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.

We exclude the following items from our non-GAAP financial measures:

Foreign exchange effect on revenue. We translated revenue for the three months and full year ended December 31, 2023 using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S. dollar, which we believe is a useful metric that facilitates comparison to our historical performance.

Purchases of property and equipment; Principal payments on finance leases. We subtract both purchases of property and equipment, net of proceeds and principal payments on finance leases in our calculation of free cash flow because we believe that these two items collectively represent the amount of property and equipment we need to procure to support our business, regardless of whether we procure such property or equipment with a finance lease. We believe that this methodology can provide useful supplemental information to help investors better understand underlying trends in our business. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures.

For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Reconciliation of GAAP to Non-GAAP Results" table in this press release.
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META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
Revenue$40,111 $32,165 $134,902 $116,609 
Costs and expenses: 
Cost of revenue7,695 8,336 25,959 25,249 
Research and development10,517 9,771 38,483 35,338 
Marketing and sales3,226 4,574 12,301 15,262 
General and administrative2,289 3,085 11,408 11,816 
Total costs and expenses23,727 25,766 88,151 87,665 
Income from operations16,384 6,399 46,751 28,944 
Interest and other income (expense), net424 (250)677 (125)
Income before provision for income taxes16,808 6,149 47,428 28,819 
Provision for income taxes2,791 1,497 8,330 5,619 
Net income$14,017 $4,652 $39,098 $23,200 
Earnings per share attributable to Class A and Class B common stockholders:
Basic$5.46 $1.76 $15.19 $8.63 
Diluted$5.33 $1.76 $14.87 $8.59 
Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders:
Basic2,566 2,638 2,574 2,687 
Diluted2,630 2,640 2,629 2,702 






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META PLATFORMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
December 31, 2023December 31, 2022
Assets
Current assets:
Cash and cash equivalents$41,862 $14,681 
Marketable securities23,541 26,057 
Accounts receivable, net16,169 13,466 
Prepaid expenses and other current assets3,793 5,345 
Total current assets85,365 59,549 
Non-marketable equity securities6,141 6,201 
Property and equipment, net96,587 79,518 
Operating lease right-of-use assets13,294 12,673 
Intangible assets, net788 897 
Goodwill20,654 20,306 
Other assets6,794 6,583 
Total assets$229,623 $185,727 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$4,849 $4,990 
Partners payable863 1,117 
Operating lease liabilities, current1,623 1,367 
Accrued expenses and other current liabilities24,625 19,552 
Total current liabilities31,960 27,026 
Operating lease liabilities, non-current17,226 15,301 
Long-term debt18,385 9,923 
Other liabilities8,884 7,764 
Total liabilities76,455 60,014 
Commitments and contingencies
Stockholders' equity:
Common stock and additional paid-in capital73,253 64,444 
Accumulated other comprehensive loss(2,155)(3,530)
Retained earnings82,070 64,799 
Total stockholders' equity153,168 125,713 
Total liabilities and stockholders' equity$229,623 $185,727 


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META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
Cash flows from operating activities
Net income$14,017 $4,652 $39,098 $23,200 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization3,172 2,376 11,178 8,686 
Share-based compensation3,424 3,008 14,027 11,992 
Deferred income taxes(1,161)(1,173)131 (3,286)
Impairment charges for facilities consolidation, net1,091 1,805 2,432 2,218 
Data center assets abandonment7 1,341 (224)1,341 
Other124 572 635 641 
Changes in assets and liabilities:
Accounts receivable(2,843)(1,698)(2,399)231 
Prepaid expenses and other current assets700 854 559 162 
Other assets(111)54 (80)(106)
Accounts payable595 876 51 210 
Partners payable76 102 (271)90 
Accrued expenses and other current liabilities(350)1,303 5,352 4,210 
Other liabilities663 439 624 886 
Net cash provided by operating activities19,404 14,511 71,113 50,475 
Cash flows from investing activities
Purchases of property and equipment(7,665)(9,043)(27,266)(31,431)
Proceeds relating to property and equipment73 55 221 245 
Purchases of marketable debt securities(1,171)(741)(2,982)(9,626)
Sales and maturities of marketable debt securities2,359 2,263 6,184 13,158 
Acquisitions of businesses and intangible assets(64)(62)(629)(1,312)
Other investing activities(4)(3)(23)(4)
Net cash used in investing activities(6,472)(7,531)(24,495)(28,970)
Cash flows from financing activities
Taxes paid related to net share settlement of equity awards(2,223)(656)(7,012)(3,595)
Repurchases of Class A common stock(5,942)(6,863)(19,774)(27,956)
Proceeds from issuance of long-term debt, net— — 8,455 9,921 
Principal payments on finance leases(307)(235)(1,058)(850)
Other financing activities71 695 (111)344 
Net cash used in financing activities(8,401)(7,059)(19,500)(22,136)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash396 424 113 (638)
Net increase (decrease) in cash, cash equivalents, and restricted cash4,927 345 27,231 (1,269)
Cash, cash equivalents, and restricted cash at beginning of the period37,900 15,251 15,596 16,865 
Cash, cash equivalents, and restricted cash at end of the period$42,827 $15,596 $42,827 $15,596 
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets
Cash and cash equivalents$41,862 $14,681 $41,862 $14,681 
Restricted cash, included in prepaid expenses and other current assets99 294 99 294 
Restricted cash, included in other assets866 621 866 621 
Total cash, cash equivalents, and restricted cash$42,827 $15,596 $42,827 $15,596 
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META PLATFORMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
Supplemental cash flow data
Cash paid for income taxes, net$4,591 $1,760 $6,607 $6,407 
Cash paid for interest, net of amounts capitalized$146 $— $448 $— 
Non-cash investing and financing activities:
Property and equipment in accounts payable and accrued expenses and other current liabilities$4,105 $3,319 $4,105 $3,319 
Acquisition of businesses in accrued expenses and other current liabilities and other liabilities$119 $291 $119 $291 
Repurchases of Class A common stock in accrued expenses and other current liabilities$474 $310 $474 $310 


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Segment Results

We report our financial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes augmented, mixed, and virtual reality related consumer hardware, software, and content.

The following table presents our segment information of revenue and income (loss) from operations:

Segment Information
(In millions)
(Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
Revenue:
Advertising$38,706 $31,254 $131,948 $113,642 
Other revenue334 184 1,058 808 
Family of Apps39,040 31,438 133,006 114,450 
Reality Labs1,071 727 1,896 2,159 
Total revenue$40,111 $32,165 $134,902 $116,609 
Income (loss) from operations:
Family of Apps$21,030 $10,678 $62,871 $42,661 
Reality Labs(4,646)(4,279)(16,120)(13,717)
Total income from operations$16,384 $6,399 $46,751 $28,944 
    
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Reconciliation of GAAP to Non-GAAP Results
(In millions, except percentages)
(Unaudited)
Three Months Ended December 31,Twelve Months Ended December 31,
2023202220232022
GAAP revenue$40,111 $32,165 $134,902 $116,609 
Foreign exchange effect on 2023 revenue using 2022 rates(816)(374)
Revenue excluding foreign exchange effect$39,295 $134,528 
GAAP revenue year-over-year change %25 %16 %
Revenue excluding foreign exchange effect year-over-year change %22 %15 %
GAAP advertising revenue$38,706 $31,254 $131,948 $113,642 
Foreign exchange effect on 2023 advertising revenue using 2022 rates(809)(379)
Advertising revenue excluding foreign exchange effect$37,897 $131,569 
GAAP advertising revenue year-over-year change %24 %16 %
Advertising revenue excluding foreign exchange effect year-over-year change %21 %16 %
Net cash provided by operating activities$19,404 $14,511 $71,113 $50,475 
Purchases of property and equipment, net(7,592)(8,988)(27,045)(31,186)
Principal payments on finance leases(307)(235)(1,058)(850)
Free cash flow$11,505 $5,288 $43,010 $18,439 



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