Facebook parent company Meta (FB-US) on Wednesday (2nd) following the market changed its first financial report since its name change. Q4 profits and the number of active users were lower than expected, user growth was stagnant, and the Q1 revenue outlook was also worse than analysts’ estimates, except for inflation and supply. In addition to the chain problem interfering with the core business, Meta warned that users switching to products with lower monetization rates will be an important factor dragging down revenue growth.
Meta closed up 1.25% on Wednesday, tumbling 23% to 249.10 following the earnings report Dollar, if the opening on Thursday (3rd) also falls so much, the market value of Meta may evaporate by more than 175 billionDollar。
Due to its optimism regarding the metaverse vision, Facebook officially changed its name to Meta in November last year, and split its business structure into two divisions, “Facebook Reality Labs” (RL) and “Family of Apps” (FoA), the former focusing on AR/VR Product development is the basis for developing the Metaverse, which covers software businesses such as Instagram, Messenger and WhatsApp.
The financial report shows that FoA’s Q4 revenue was 32.79 billionDollar, operating profit was 15.89 billionDollar; RL revenue of 877 millionDollar, an operating loss of 3.3 billionDollar。
FY 2021 Q4 (as of December 31) financial report key data:
- Revenue: 33.67 billionDollar, an annual increase of 20%, higher than the 33.4 billion expected in a Refinitiv surveyDollar
- Net profit: 10.285 billionDollar, an annual decrease of 8%
- EPS following dilution: 3.67 Dollar, down 5% year-on-year, below the 3.84 expected in a Refinitiv survey Dollar
- Daily active users (DAU): 1.93 billion, up 5% year over year, below the StreetAccount survey forecast of 1.95 billion
- Monthly Active Users (MAU): 2.91 billion, up 4% year over year, below the StreetAccount survey forecast of 2.95 billion
- Average revenue per user (ARPU): 11.57 Dollar, higher than the StreetAccount survey expected 11.38 Dollar
Key figures of the annual financial report:
- Revenue: 117.93 billionDollar, an annual increase of 37%
- Net profit: 39.37 billionDollar, an annual increase of 35%
- EPS following dilution: 13.77 Dollar, an annual increase of 36%
Meta said a number of factors weighed on last quarter’s performance, including Apple’s new iOS privacy policy and overall economic headwinds, and it blamed weaker-than-expected growth on inflation and supply chain challenges that led to lower advertiser budgets, as well as regulatory changes that brought regarding archyde news and measurement resistance will also steadily increase.
Meta expects that Apple’s new iOS privacy system introduced last year will bring strong headwinds to the company’s business, which may bring 10 billion yuan this yearDollarloss of income.
Meta also warns that the increased competition for time will continue to be detrimental to the company, with people spending more time on lower monetization products such as Facebook Reels than in higher monetization apps such as Facebook Feed and Facebook Stories. Slowing down revenue growth.
When the latest financial report was released, Facebook continued to face strong criticism from the US Congress and the public for the whistleblower incident.cryptocurrencyBusiness chief David Marcus and Messenger unit head Stan Chudnovsky both left in the final months of last year.
FY 2022 Q1 financial forecast:
- Revenue: 27 billion to 29 billionDollar(3%-11% annual growth), Refinitiv survey expects 30.15 billionDollar (regarding 15% annual increase)
Meta expects capex to fall between $29 billion and $34 billion this yearDollarThe planned investments in data centers, servers, network infrastructure and office equipment, as previously expected, also reflect a significant increase in the company’s investments in AI and machine learning.
Meta also said that although Facebook Reality Labs’ products and services may require more infrastructure in the future, there is no such demand yet, so the division will not be the main driver of capital expenditures this year.
