- Meta Platforms, Inc. (formerly known as Facebook, Inc.) reported financial results for the three months ended March 31, 2023, and March 31, 2022. The following commentary highlights key aspects of the company’s financial performance:
- Revenue: Meta’s revenue for the first quarter of 2023 was $28.65 billion, representing a 3% increase compared to the same period in 2022, when revenue was $27.91 billion. This indicates modest revenue growth year over year.
- Costs and Expenses: The company’s costs and expenses for Q1 2023 totaled $21.42 billion, a 10% increase compared to Q1 2022, when costs and expenses were $19.38 billion. The increase in costs and expenses outpaced the growth in revenue.
- Income from Operations: Meta’s income from operations for Q1 2023 was $7.23 billion, a decrease of 15% compared to Q1 2022, when income from operations was $8.52 billion. This decline suggests reduced operational profitability.
- Operating Margin: The company’s operating margin for Q1 2023 was 25%, compared to 31% for Q1 2022. The decrease in operating margin indicates lower operational efficiency.
- Provision for Income Taxes: Meta’s provision for income taxes for Q1 2023 was $1.60 billion, an 11% increase compared to Q1 2022, when the provision for income taxes was $1.44 billion.
- Effective Tax Rate: The company’s effective tax rate for Q1 2023 was 22%, compared to 16% for Q1 2022. This increase in the effective tax rate suggests a higher tax burden.
- Net Income: Meta’s net income for Q1 2023 was $5.71 billion, a decrease of 24% compared to Q1 2022, when net income was $7.47 billion. The decline in net income indicates reduced overall profitability.
- Diluted Earnings Per Share (EPS): The company’s diluted EPS for Q1 2023 was $2.20, a decrease of 19% compared to Q1 2022, when diluted EPS was $2.72.
- Meta Platforms, Inc. (formerly known as Facebook, Inc.) reported financial results for the quarters Q1’21 through Q1’23. The following commentary highlights key aspects of the company’s financial performance:
- Advertising Revenue: Meta’s advertising revenue showed a general upward trend from Q1’21 ($25.44 billion) to Q4’21 ($32.64 billion), with some fluctuations in between. However, advertising revenue declined in Q1’22 ($26.998 billion) and remained relatively stable through Q4’22 ($31.25 billion). In Q1’23, advertising revenue decreased to $28.10 billion.
- Other Revenue (Family of Apps): Other revenue within the Family of Apps remained relatively stable, ranging from $155 million to $218 million across the quarters.
- Family of Apps Revenue: Total revenue for the Family of Apps generally increased from Q1’21 ($25.64 billion) to Q4’21 ($32.79 billion), with a decline in Q1’22 ($27.21 billion) and relative stability through Q4’22 ($31.44 billion). In Q1’23, revenue decreased to $28.31 billion.
- Reality Labs Revenue: Reality Labs revenue fluctuated across the quarters, with a peak in Q4’21 ($877 million) and a decline in Q1’23 ($339 million).
- Total Revenue: Meta’s total revenue generally increased from Q1’21 ($26.17 billion) to Q4’21 ($33.67 billion), with a decline in Q1’22 ($27.91 billion) and relative stability through Q4’22 ($32.17 billion). In Q1’23, total revenue decreased to $28.65 billion.
- Family of Apps Operating Income: Operating income for the Family of Apps showed an upward trend from Q1’21 ($13.21 billion) to Q4’21 ($15.89 billion), followed by declines in Q1’22 ($11.48 billion) and Q3’22 ($9.34 billion). It increased again in Q4’22 ($10.68 billion) and Q1’23 ($11.22 billion).
- Reality Labs Operating Loss: Reality Labs reported operating losses in all quarters, with the largest loss in Q4’22 ($4.28 billion) and a smaller loss in Q1’23 ($3.99 billion).
- Total Income from Operations: Meta’s total income from operations generally increased from Q1’21 ($11.38 billion) to Q4’21 ($12.59 billion), followed by declines in Q1’22 ($8.52 billion) and Q3’22 ($5.66 billion). It increased again in Q4’22 ($6.40 billion) and Q1’23 ($7.23 billion).
- Operating Margin: Meta’s operating margin fluctuated across the quarters, with the highest margin in Q1’21 and Q2’21 (43%) and the lowest margin in Q3’22 and Q4’22 (20%). The operating margin increased to 25% in Q1’23.
