Facebook’s net profit in the third quarter was $9.194 billion, a year-on-year increase of 17%

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Tencent technology news on October 26, Facebook released its third quarter financial report as of September 30, 2021 after hours on Monday. According to the financial report, Facebook’s revenue in the third quarter was US $29.010 billion, an increase of 35% over US $21.47 billion in the same period last year; The net profit was US $9.194 billion, an increase of 17% over US $7.846 billion in the same period last year.
Executive comments
Mark Zuckerberg, founder and CEO of Facebook, said, “we have made good progress this quarter and our community continues to grow. I am excited about our roadmap, especially about creators, business and helping build the metauniverse.”
Key performance in the third quarter:
— Facebook’s total revenue in the third quarter was $29.010 billion, an increase of 35% over $21.47 billion in the same period last year;
— Facebook’s operating profit in the third quarter was US $10.423 billion, an increase of 30% over US $8.040 billion in the same period last year;
— Facebook’s operating profit margin in the third quarter was 36%, and that in the same period last year was 37%;
— Facebook’s net profit in the third quarter was US $9.194 billion, an increase of 17% over US $7.846 billion in the same period last year;
— Facebook’s diluted earnings per share in the third quarter was $3.22, better than $2.71 in the same period last year.
Key points of operation and other financial data in the third quarter:
— in September 2021, the average number of daily active users of Facebook was 1.93 billion, an increase of 6% over the same period last year;
— as of September 30, 2021, the average number of monthly active users of Facebook was 2.91 billion, an increase of 6% over the same period last year;
— in September 2021, the average number of daily active users of the “family” of Facebook services (including Facebook, instagram, WhatsApp, Messenger and other services) was 2.81 billion, an increase of 11% over the same period last year;
— as of September 30, 2021, the number of monthly active users of Facebook service “family” was 3.58 billion, an increase of 12% over the same period last year;
— Facebook’s capital expenditure in the third quarter was $4.54 billion;
— Facebook repurchased $14.37 billion of class a common shares in the third quarter. As of September 30, 2021, Facebook’s previous share repurchase authorization remained $7.97 billion. Facebook also announced an additional $50 billion repurchase on Monday.
— by the end of the third quarter of 2021, the total amount of cash, cash equivalents and securities held by Facebook was US $58.08 billion;
— as of September 30, 2021, the total number of Facebook employees was 681770, an increase of 20% over the same period of the previous year.
Third quarter financial analysis:
Revenue:
Facebook’s total revenue in the third quarter was $29.010 billion, up 35% from $21.47 billion in the same period last year. Among them, Facebook’s revenue from advertising business in the third quarter was US $28.276 billion, an increase of 33% over US $21.221 billion in the same period last year; Facebook’s revenue from other service fees in the third quarter was $734 million, up 195% from $249 million in the same period last year.
Costs and expenses:
Facebook’s total costs and expenses in the third quarter were $18.587 billion, up 38% from $13.43 billion in the same period last year. Among them, the revenue cost was US $5.771 billion, higher than US $4.194 billion in the same period last year; Facebook’s R & D expenditure in the third quarter was $6.316 billion, higher than $4.763 billion in the same period last year; Marketing and sales expenses were US $3.554 billion, higher than US $2.683 billion in the same period last year; General and management expenditure was $2946 million, up from $1790 million in the same period last year.
Operating profit:
Facebook’s operating profit in the third quarter was US $10.423 billion, an increase of 30% over US $8.040 billion in the same period last year; Facebook’s operating profit margin in the third quarter was 36%, compared with 37% in the same period last year.
Net profit:
Facebook’s net profit in the third quarter was US $9.194 billion, an increase of 17% over US $7.846 billion in the same period last year; Facebook’s diluted earnings per share in the third quarter were $3.22, up from $2.71 in the same period last year.
Capex:
Facebook’s third quarter capital expenditure was $4.54 billion
Balance sheet:
As of the end of the third quarter of 2021, the total amount of cash, cash equivalents and securities held by Facebook was US $58.08 billion
Comparison with analysts’ expectations
Facebook’s total revenue in the third quarter was $29.010 billion, up 35% from $21.47 billion in the same period last year; Facebook’s third quarter net profit was $9.194 billion, up 17% from $7.846 billion in the same period last year, or $3.22 per diluted share. Facebook’s third quarter net profit was better than market expectations, but its revenue was less than expected. According to a Thomson Reuters survey, market analysts had expected Facebook’s diluted earnings per share to be $3.19 and revenue to be $29.58 billion in the third quarter.
Performance Outlook:

Starting from the financial report of the fourth quarter of 2021, Facebook plans to take Facebook Reality Laboratory (FRL) as an independent reporting department. As announced, the company is investing a lot of resources in augmented and virtual reality products and services, which is an important part of its work to develop the next generation of online social experience. Under this reporting structure, Facebook provides revenue and operating profit data for two market segments: the first market segment, the application family, including Facebook, instagram, Messenger, WhatsApp and other services. The second segment is Facebook reality lab, which will include enhanced hardware, software and content related to virtual reality. The company expects that the investment in Facebook reality lab will reduce the overall operating profit by about $10 billion in 2021. Facebook is committed to turning this long-term vision into reality and hopes to increase investment in the coming years.
Facebook expects total revenue in the fourth quarter of 2021 to be $31.5 billion to $34 billion. This expectation reflects novel coronavirus pneumonia in the fourth quarter of the year, as apple iOS 14 changes and macroeconomic and new crown pneumonia pandemic factors continue to adversely affect Facebook. In addition, Facebook expects non advertising revenue to decline year-on-year in the fourth quarter because the company ushered in the strong release of Quest 2 during last year’s holiday shopping season.
Facebook predicts that the total expenditure in 2021 will range from $70 billion to $71 billion, compared with $70 billion to $73 billion previously estimated; Total expenditure in 2022 will range from $91 billion to $97 billion due to increased investment in technology and products, talent and infrastructure related costs.
Facebook estimates that capital expenditure in 2021 will be about US $19 billion, compared with us $19 billion to US $21 billion previously estimated; Capital expenditure in 2022 will range from $29 billion to $34 billion due to investment in data centers, servers, network technology facilities and office space.
Stock price performance
Facebook shares rose $4.08, or 1.26%, to close at $328.69 in regular trading on the Nasdaq stock market on Monday. At press time, Facebook shares rose $9.35, or 2.84%, to $338.04 in after hours trading. In the past 52 weeks, Facebook’s lowest share price was $244.61 and its highest share price was $384.33. According to Monday’s closing price, Facebook has a market value of about $926.7 billion. (compiled by Tencent technology / Wuji)