Meta’s net profit in the fourth quarter was US $10.285 billion, down 8% year-on-year

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Tencent technology news on February 3, meta, the parent company of Facebook, released its fourth quarter and full year financial results as of December 31, 2021 after hours on Wednesday. According to the financial report, meta’s revenue in the fourth quarter was US $33.671 billion, an increase of 20% over US $28.072 billion in the same period last year; The net profit was US $10.285 billion, down 8% from US $11.219 billion in the same period last year.
Executive comments:
Mark Zuckerberg, founder and CEO of meta, said, “As people turn to our products to stay connected, businesses continue to use our services to achieve growth, and our quarterly performance is solid. I am encouraged by the progress we have made in some important growth areas over the past year, such as reels, e-commerce and virtual reality. As we strive to build a metauniverse, we will continue to invest in these and other areas in 2022 He is a key priority. ”
Main results in the fourth quarter and the whole year:
–Meta’s total revenue in the fourth quarter was US $33.671 billion, an increase of 20% over US $28.072 billion in the same period last year;
–Meta’s operating profit in the fourth quarter was US $12.585 billion, down 1% from US $12.775 billion in the same period last year;
–Meta’s operating profit margin in the fourth quarter was 37%, and that in the same period last year was 46%;
–Meta’s net profit in the fourth quarter was US $10.285 billion, down 8% from US $11.219 billion in the same period last year;
–Meta’s diluted earnings per share in the fourth quarter was $3.67, down from $3.88 in the same period last year;
–Meta’s total revenue in 2021 was US $117.929 billion, up 37% from US $85.965 billion in the same period last year;
–Meta’s operating profit in 2021 was $46.753 billion, up 43% from $32.671 billion in the same period last year;
–Meta’s operating profit margin was 40% in 2021 and 38% in the same period last year;
–Meta’s net profit in 2021 was US $39.370 billion, an increase of 35% over US $29.146 billion in the same period of last year;
–Meta’s diluted earnings per share in 2021 was $13.77, better than $10.09 in the same period last year.
Key operating points and other financial data for the fourth quarter and the whole year:
–In December 2021, the average number of daily active users of meta “family” services (including Facebook, instagram, WhatsApp and messenger) was 2.82 billion, an increase of 8% over the same period last year;
–In December 2021, the average number of monthly active users of meta “family” services (including Facebook, instagram, WhatsApp and messenger) was 3.59 billion, an increase of 9% over the same period last year;
–In December 2021, the average number of daily active users of Facebook was 1.93 billion, an increase of 5% over the same period last year;
–In December 2021, the average number of monthly active users of Facebook was 2.91 billion, an increase of 4% over the same period last year;
–In the fourth quarter of 2021, the advertising of meta “application family increased by 13% year-on-year, and the average price of each advertisement increased by 6% year-on-year. Throughout 2021, the advertising volume increased by 10% year-on-year, and the average price of each advertisement increased by 24% year-on-year.
–Meta’s capital expenditure in the fourth quarter and the whole year was US $5.54 billion and US $19.24 billion respectively;
–Meta repurchased $19.18 billion and $44.81 billion of class a common shares in the fourth quarter and the whole year, respectively. As of December 31, 2021, meta’s previous share repurchase authorization remained US $38.79 billion.
–By the end of the fourth quarter of 2021, the total amount of cash, cash equivalents and marketable securities held by meta was US $48 billion;
–As of September 30, 2021, the total number of employees of meta was 71700, an increase of 23% over the same period of the previous year.
Starting from the financial report of the fourth quarter of 2021, meta regards meta 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, meta provides revenue and operating profit data of two market segments: the first market segment, application family, including meta, instagram, Messenger, WhatsApp and other services. The second segment is meta reality lab, which will include hardware, software and content related to augmented virtual reality.
Fourth quarter financial analysis:
revenue
Meta’s total revenue in the fourth quarter was $33.671 billion, up 20% from $28.072 billion in the same period last year. Among them, the revenue from the application family was US $32.794 billion, compared with us $27.355 billion in the same period last year; Revenue from reality labs was $877 million, compared with $717 million a year earlier.
Among the revenue of the application family, the revenue from the advertising business in the fourth quarter was $32.639 billion, compared with $27.187 billion in the same period last year; Other service fee revenue in the fourth quarter was $155 million, compared with $168 million in the same period last year.
Costs and expenses

Meta’s total costs and expenses in the fourth quarter were $21.086 billion, compared with $15.297 billion in the same period last year. Among them, the revenue cost was US $6.348 billion, higher than US $5.21 billion in the same period of last year; Meta’s R & D expenditure in the fourth quarter was US $7.046 billion, higher than US $5.208 billion in the same period last year; Marketing and sales expenses were US $4.387 billion, higher than US $3.28 billion in the same period last year; General and management expenditure was $3.305 billion, up from $1.599 billion in the same period last year.
Operating profit
Meta’s fourth quarter operating profit was $12.585 billion, down 1% from $12.775 billion a year earlier. Among them, the operating profit from the application family was US $15.889 billion, compared with us $14.874 billion in the same period last year; The operating loss from reality lab was $3.304 billion, compared with $2.099 billion in the same period last year. Meta’s operating profit margin in the fourth quarter was 37%, compared with 46% in the same period last year.
Net profit
Meta’s net profit in the fourth quarter was US $10.285 billion, down 8% from US $11.219 billion in the same period last year; Meta’s diluted earnings per share in the fourth quarter was $3.67, down from $3.88 in the same period last year.
capital expenditure
Meta’s capital expenditure in the fourth quarter was $5.54 billion
Balance sheet
As of the end of the fourth quarter of 2021, the total amount of cash, cash equivalents and securities held by meta was $48 billion.
Financial analysis for 2021:
revenue
Meta’s total revenue in 2021 was $117.929 billion, up 37% from $85.965 billion in the same period last year. Among them, the revenue from the application family was US $115.655 billion, compared with us $84.826 billion in the same period last year; Revenue from reality labs was $2.274 billion, compared with $1.139 billion a year earlier.
Among the revenue of the application family, the revenue from advertising business in 2021 was US $114.934 billion, compared with us $84.169 billion in the same period last year; Other service fee revenue in 2021 was $721 million, compared with $657 million in the same period last year.
Costs and expenses
The total cost and expenditure of meta in 2021 was US $71.176 billion, compared with us $53.294 billion in the same period last year. Among them, the revenue cost was US $22.649 billion, higher than US $16.692 billion in the same period of last year; Meta’s R & D expenditure in 2021 was US $24.655 billion, higher than US $18.447 billion in the same period of last year; Marketing and sales expenditure was 14.043 billion US dollars, higher than 11.591 billion US dollars in the same period of last year; General and management expenditure was $9.829 billion, up from $6.564 billion in the same period last year.
Operating profit
Meta’s operating profit in 2021 was $46.753 billion, compared with $32.671 billion in the same period last year. Among them, the operating profit from the application family was US $56.946 billion, compared with us $39.294 billion in the same period last year; The operating loss from reality lab was $10.193 billion, compared with $6.623 billion in the same period last year. Meta’s operating profit margin was 40% in 2021 and 38% in the same period last year.
Net profit
Meta’s net profit in 2021 was US $39.370 billion, an increase of 35% over US $29.146 billion in the same period of last year; Meta’s diluted earnings per share in 2021 was $13.77, better than $10.09 in the same period last year.
capital expenditure
Meta’s capital expenditure in 2021 was US $19.24 billion.
Comparison with analysts’ expectations
Meta’s total revenue in the fourth quarter was US $33.671 billion, an increase of 20% over US $28.072 billion in the same period last year; Meta’s fourth quarter net profit was $10.285 billion, down 8% from $11.219 billion a year earlier, or $3.67 per diluted share. Meta’s fourth quarter revenue was better than market expectations, but earnings per share were lower than expected. According to the survey of Thomson Reuters, market analysts had expected on average that meta’s diluted earnings per share in the fourth quarter was $3.84 and revenue was $33.41 billion.
Performance Outlook:
Meta predicts that the total revenue in the first quarter of 2022 will be US $27 billion to US $29 billion, with a year-on-year increase of 3% to 11%. Meta expects that the year-on-year growth in the first quarter will be affected by the headwind of advertising and advertising price growth. Throughout 2022, meta’s revenue will range from $90 billion to $95 billion, lower than the company’s previous forecast of $91 billion to $97 billion.
Meta estimates that the total expenditure in 2022 will be between us $70 billion and US $71 billion, compared with us $70 billion to US $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.
Meta estimates that the capital expenditure in 2022, including the principal payment of financial leasing, will be between us $29 billion and US $34 billion, which is the same as the previous estimate. The capital expenditure of meta plan is mainly driven by investment in data center, server, network infrastructure and office facilities. As previously discussed by the company, this range reflects its significant growth in investment in artificial intelligence and machine learning, which will support the development of meta family applications in many fields. Although the products and services of real laboratories may need more infrastructure capacity in the future, they do not need a lot of capacity at present, so they are not an important driver of capital expenditure in 2022.
Change stock code:

The code of meta class a ordinary shares listed on the Nasdaq stock market is expected to change from “FB” to “meta” in the first half of 2022. Shareholders are not required to take any action on the change of stock code, nor does it affect the rights and interests of shareholders.
Share price performance:
Meta shares rose $4.00 or 1.25% to close at $323.00 in regular trading on the Nasdaq stock market on Wednesday. At the time of publication, meta’s share price plunged $69.00, or 21.36%, to $255.00 in after hours trading. Over the past 52 weeks, meta’s lowest share price was $253.50 and its highest share price was $384.33. According to Wednesday’s closing price, meta has a market value of about $898.5 billion. (compiled by Tencent technology / Wuji)