Meta Platforms, Inc. · NASDAQ:META
Meta Platforms — Q1 2020 Earnings Presentation
24 slides from Meta Platforms's earnings presentation, Apr 29, 2020
Slide 1: Facebook Q1 2020 Results
Facebook Q1 2020 Results investor.fb.com
Slide 2: Facebook Daily Active Users (DAUs)
Facebook Daily Active Users (DAUs) In Millions 1,734 1,623 1,657 1,562 1,587 1,495 1,523 1,449 1,471 556 519 532 490 499 461 470 478 453 627 641 678 529 546 561 577 600 615 Rest of World Asia-Pacific 282 279 278 282 286 286 288 294 305 Europe 185 185 185 186 186 187 189 190 195 US & Canada Q1'18 Q2'
Slide 3: Facebook Monthly Active Users (MAUs)
Facebook Monthly Active Users (MAUs) In Millions 2,603 2,449 2,498 2,375 2,414 2,271 2,320 2,196 2,234 851 802 817 768 782 736 750 705 723 1,038 1,093 947 981 1,003 1,013 873 894 917 Rest of World 381 384 385 387 394 406 Asia-Pacific 377 376 375 Europe 241 241 242 242 243 244 247 248 253 US & Canada
Slide 4: Facebook Average Revenue per User (ARPU)
Facebook Average Revenue per User (ARPU) $8.52 $41.41 $13.21 $7.05 $7.26 $6.95 $33.27 $34.55 $34.18 $10.70 $10.68 $10.64 $6.42 $0.14 $30.12 $0.92 $9.55 $0.23 $0.11 $0.11 $0.12 $0.67 $0.69 $0.73 $0.17 $0.17 $0.21 $0.07 $0.43 $0.11 $8.38 $40.50 $12.99 $6.35 $6.94 $7.15 $6.84 $32.60 $33.86 $33.45 $10.5
Slide 5: Family Daily Active People (DAP)
Family Daily Active People (DAP) In Billions 2.36 2.26 2.20 2.14 2.10 2.03 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 DAP/MAP Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1’20 77% 78% 78% 78% 78% 79% We define a daily active person (DAP) as a registered and logged-in user of Facebook, Instagram, Messenger, and/or WhatsA
Slide 6: Family Monthly Active People (MAP)
Family Monthly Active People (MAP) In Billions 2.99 2.89 2.82 2.76 2.69 2.64 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 We define a monthly active person (MAP) as a registered and logged-in user of Facebook, Instagram, Messenger, and/or WhatsApp (collectively, our "Family" of products) who visited at least
Slide 7: Family Average Revenue per Person (ARPP)
Family Average Revenue per Person (ARPP) $7.38 $0.12 $6.52 $6.20 $6.33 $6.03 $0.11 $5.66 $0.10 $0.10 $0.10 $0.06 $7.26 $6.41 $6.23 $6.10 $5.93 $5.60 Other Advertising Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 We define average revenue per person (ARPP) as our total revenue during a given quarter, divided
Slide 8: Revenue
Revenue In Millions $21,082 $346 $17,652 $17,737 $16,914 $16,886 $269 $297 $274 $15,077 $262 $13,727 $13,231 $165 $11,966 $188 $193 $171 $20,736 $16,640 $16,624 $17,383 $17,440 $14,912 $13,038 $13,539 $11,795 Other Advertising Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 8
Slide 9: Revenue by Facebook User Geography
Revenue by Facebook User Geography In Millions $21,082 $2,010 $17,652 $17,737 $16,914 $16,886 $3,665 $1,664 $1,774 $1,571 $15,077 $1,650 $13,727 $3,257 $13,231 $2,759 $1,437 $3,267 $3,012 $11,966 $1,325 $5,159 $1,362 $2,682 $1,172 $2,422 $2,316 $4,151 $4,124 $4,254 $2,091 $4,109 $3,650 $3,302 $3,313
Slide 10: Advertising Revenue by Facebook User Geography
Advertising Revenue by Facebook User Geography In Millions $20,736 $2,002 $17,383 $17,440 $16,640 $16,624 $1,766 $3,642 $1,654 $1,565 $14,912 $1,644 $13,539 $13,038 $1,430 $3,243 $3,236 $2,742 $2,985 $11,795 $1,320 $5,071 $1,357 $2,670 $1,164 $2,406 $2,297 $4,087 $4,057 $4,171 $2,080 $4,043 $3,609 $
Slide 11: Other Revenue by Facebook User Geography
Other Revenue by Facebook User Geography In Millions $346 $8 $23 $297 $274 $269 $10 $262 $21 $6 $8 $88 $17 $6 $27 $24 $64 $83 $193 $188 $67 $5 $66 $171 $5 $165 $19 $16 $8 $7 $11 $12 $55 $47 $44 $41 $227 $187 $183 Rest of World $163 $170 $114 $120 Asia-Pacific $108 $105 Europe US & Canada Q1'18 Q2'18
Slide 12: Expenses as a Percentage of Revenue
Expenses as a Percentage of Revenue 27% 19% 9% 7% 8% 6% 6% 9% 6% 16% 14% 14% 13% 14% 13% 14% 15% 14% 20% 23% General & 19% 19% 20% 19% 19% 17% 18% Administrative Marketing & Sales 20% 20% Research & 16% 17% 18% 17% 19% 18% 17% Development Cost of Revenue Q1'18 Q2'18 Q3'18 Q4'18 Q1'19* Q2'19* Q3'19 Q
Slide 13: Income from Operations
Income from Operations In Millions $8,858 $7,820 $7,185 $5,863 $5,781 $5,893 $5,449 $4,626 $3,317 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19* Q2'19* Q3'19 Q4'19 Q1'20 *Includes $3.0 billion and $2.0 billion in legal expenses accrued in the first quarter and second quarter of 2019, respectively, related to the FT
Slide 14: Operating Margin
Operating Margin 46% 46% 44% 42% 41% 42% 33% 27% 22% Q1'18 Q2'18 Q3'18 Q4'18 Q1'19* Q2'19* Q3'19 Q4'19 Q1'20 *Includes $3.0 billion and $2.0 billion in legal expenses accrued in the first quarter and second quarter of 2019, respectively, related to the FTC settlement as discussed in our Q1 2019 and
Slide 15: Effective Tax Rate
Effective Tax Rate In Millions, Except for Percentages Q1'18 Q2'18 Q3'18 Q4’18 Q1’19 * Q2’19 ** Q3’19 Q4’19 Q1’20 Income before provision $ 5,610 $ 5,868 $ 5,912 $ 7,971 $ 3,482 $ 4,832 $ 7,329 $ 9,169 $ 5,861 for income taxes Provision for income taxes 622 762 775 1,089 1,053 2,216 1,238 1,820 959
Slide 16: Net Income
Net Income In Millions $7,349 $6,882 $6,091 $4,988 $5,106 $5,137 $4,902 $2,429 $2,616 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19* Q2'19** Q3'19 Q4'19 Q1'20 *Includes a $3.0 billion legal expense accrued in the first quarter of 2019 related to the FTC matter as discussed in our Q1 2019 Press Release. **Includes a
Slide 17: Diluted Earnings Per Share
Diluted Earnings Per Share $2.56 $2.38 $2.12 $1.69 $1.74 $1.76 $1.71 $0.85 $0.91 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19* Q2'19** Q3'19 Q4'19 Q1'20 *Includes a $3.0 billion legal expense accrued in the first quarter of 2019 related to the FTC matter as discussed in our Q1 2019 Press Release. Excluding this ex
Slide 18: Capital Expenditures
Capital Expenditures In Millions $15,654 $13,915 $3,962 $3,658 Q1'19 Q1'20 2018 2019 Quarterly Annual Capital expenditures for periods presented were related to net purchases of property and equipment and principal payments on finance leases. 18
Slide 19: Appendix
Appendix FACEBOOK
Slide 20: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation In Millions Q1'18 Q2'18 Q3'18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Net cash provided by operating $ 7,860 $ 6,299 $ 7,496 $ 7,684 $ 9,308 $ 8,615 $ 9,307 $ 9,083 $ 11,001 activities Less: Purchases of property and 2,812 3,459 3,343 4,366 3,837 3,633 3,532 4,100 3,558 equ
Slide 21: Limitations of Key Metrics and Other Data
Limitations of Key Metrics and Other Data The numbers for our key metrics are calculated using internal company data based on the activity of user accounts. We have historically reported the numbers of our daily active users (DAUs), monthly active users (MAUs), and average revenue per user (ARPU) (c
Slide 22: Limitations of Key Metrics and Other Data
Limitations of Key Metrics and Other Data Family Metrics Many people in our community have user accounts on more than one of our products, and some people have multiple user accounts within an individual product. Accordingly, for our Family metrics, we do not seek to count the total number of user a
Slide 23: Limitations of Key Metrics and Other Data
Limitations of Key Metrics and Other Data User Geography Our data regarding the geographic location of our users is estimated based on a number of factors, such as the user’s IP address and self-disclosed location. These factors may not always accurately reflect the user’s actual location. For examp
Slide 24: Facebook Q1 2020 Results
Facebook Q1 2020 Results investor.fb.com