MENLO PARK, Calif.,
July 28, 2021 /PRNewswire/ -- Facebook, Inc. (Nasdaq: FB)
today reported financial results for the quarter ended
June 30, 2021.
"We had a strong quarter as we continue to help businesses grow
and people stay connected," said Mark
Zuckerberg, Facebook founder and CEO. "I'm excited to see
our major initiatives around creators and community, commerce, and
building the next computing platform coming together to start to
bring the vision of the metaverse to life."
Second Quarter 2021 Financial Highlights
|
Three Months Ended
June 30,
|
|
Year-over-Year
%
Change
|
In millions,
except percentages and per share amounts
|
2021
|
|
2020
|
|
Revenue:
|
|
|
|
|
|
Advertising
|
$
|
28,580
|
|
$
|
18,321
|
|
56%
|
Other
|
497
|
|
366
|
|
36%
|
Total
revenue
|
29,077
|
|
18,687
|
|
56%
|
Total costs and
expenses
|
16,710
|
|
12,724
|
|
31%
|
Income from
operations
|
$
|
12,367
|
|
$
|
5,963
|
|
107%
|
Operating
margin
|
43%
|
|
32%
|
|
|
Provision for income
taxes
|
$
|
2,119
|
|
$
|
953
|
|
122%
|
Effective tax
rate
|
17%
|
|
16%
|
|
|
Net income
|
$
|
10,394
|
|
$
|
5,178
|
|
101%
|
Diluted earnings per
share (EPS)
|
$
|
3.61
|
|
$
|
1.80
|
|
101%
|
Second Quarter 2021 Operational and Other Financial
Highlights
- Facebook daily active users (DAUs) – DAUs were 1.91
billion on average for June 2021, an
increase of 7% year-over-year.
- Facebook monthly active users (MAUs) – MAUs were 2.90
billion as of June 30, 2021, an
increase of 7% year-over-year.
- Family daily active people (DAP) – DAP was 2.76 billion
on average for June 2021, an increase
of 12% year-over-year.
- Family monthly active people (MAP) – MAP was 3.51
billion as of June 30, 2021, an
increase of 12% year-over-year.
- Capital expenditures – Capital expenditures, including
principal payments on finance leases, were $4.74 billion for the second quarter of
2021.
- Cash and cash equivalents and marketable securities –
Cash and cash equivalents and marketable securities were
$64.08 billion as of June 30, 2021.
- Headcount – Headcount was 63,404 as of June 30, 2021, an increase of 21%
year-over-year.
CFO Outlook Commentary
Advertising revenue growth in the second quarter of 2021 was
driven by a 47% year-over-year increase in the average price per ad
and a 6% increase in the number of ads delivered. Similar to the
second quarter, we expect that advertising revenue growth will
be driven primarily by year-over-year advertising price
increases during the rest of 2021.
In the third and fourth quarters of 2021, we expect
year-over-year total revenue growth rates to decelerate
significantly on a sequential basis as we lap periods of
increasingly strong growth. When viewing growth on a two-year basis
to exclude the impacts from lapping the COVID-19 recovery, we
expect year-over-two-year total revenue growth to decelerate
modestly in the second half of 2021 compared to the second quarter
growth rate.
We continue to expect increased ad targeting headwinds in 2021
from regulatory and platform changes, notably the recent iOS
updates, which we expect to have a greater impact in the third
quarter compared to the second quarter. This is factored into our
outlook.
As noted in recent earnings calls, we continue to monitor
developments regarding the viability of transatlantic data
transfers and their potential impact on our European
operations.
We expect 2021 total expenses to be in the range of $70-73 billion, unchanged from our prior outlook.
The year-over-year growth in expenses is driven primarily by
investments in technical and product talent, infrastructure, and
consumer hardware-related costs. Our expense outlook reflects our
commitment to invest ahead of the compelling long-term growth
opportunities we see across our product portfolio.
We expect 2021 capital expenditures to be in the range of
$19-21 billion, unchanged from our
prior estimate. Our capital expenditures are driven primarily by
our investments in data centers, servers, network infrastructure,
and office facilities.
We expect our full-year 2021 tax rate to be in the
high-teens.
Webcast and Conference Call Information
Facebook will host a conference call to discuss the results at
2 p.m. PT / 5
p.m. ET today. The live webcast of Facebook's earnings
conference call can be accessed at investor.fb.com, along with the
earnings press release, financial tables, and slide presentation.
Facebook uses the investor.fb.com and about.fb.com/news/ websites
as well as Mark Zuckerberg's
Facebook Page (https://www.facebook.com/zuck) and Instagram account
(https://www.instagram.com/zuck) as means of disclosing material
non-public information and for complying with its disclosure
obligations under Regulation FD.
Following the call, a replay will be available at the same
website. A telephonic replay will be available for one week
following the conference call at +1 (402) 977-9140 or +1 (800)
633-8284, conference ID 21995877.
Transcripts of conference calls with publishing equity research
analysts held today will also be posted to
the investor.fb.com website.
About Facebook
Founded in 2004, Facebook's mission is to give people the power
to build community and bring the world closer together. People use
Facebook's apps and technologies to connect with friends and
family, find communities and grow businesses.
Contacts
Investors:
Deborah Crawford
investor@fb.com / investor.fb.com
Press:
Ryan Moore
press@fb.com / about.fb.com/news/
Forward-Looking Statements
This press release contains forward-looking statements regarding
our future business plans and expectations. These forward-looking
statements are only predictions and may differ materially from
actual results due to a variety of factors including: the impact of
the COVID-19 pandemic on our business and financial
results; our ability to retain or increase users and
engagement levels; our reliance on advertising revenue; our
dependency on data signals and mobile operating systems, networks,
and standards that we do not control; risks associated with new
products and changes to existing products as well as other new
business initiatives; our emphasis on community growth and
engagement and the user experience over short-term financial
results; maintaining and enhancing our brand and reputation; our
ongoing privacy, safety, security, and content review efforts;
competition; risks associated with government actions that could
restrict access to our products or impair our ability to sell
advertising in certain countries; litigation and government
inquiries; privacy and regulatory concerns; risks associated with
acquisitions; security breaches; and our ability to manage growth
and geographically-dispersed operations. These and other potential
risks and uncertainties that could cause actual results to differ
from the results predicted are more fully detailed under the
caption "Risk Factors" in our Quarterly Report on Form 10-Q filed
with the SEC on April 29, 2021, which
is available on our Investor Relations website at investor.fb.com
and on the SEC website at www.sec.gov. Additional information will
also be set forth in our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2021. In addition, please note that the
date of this press release is July 28, 2021, and any
forward-looking statements contained herein are based on
assumptions that we believe to be reasonable as of this date. We
undertake no obligation to update these statements as a result of
new information or future events.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements,
which are prepared and presented in accordance with generally
accepted accounting principles in the
United States (GAAP), we use the following non-GAAP
financial measures: revenue excluding foreign exchange effect,
advertising revenue excluding foreign exchange effect and free cash
flow. The presentation of these financial measures is not intended
to be considered in isolation or as a substitute for, or superior
to, financial information prepared and presented in accordance with
GAAP. Investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool. In addition, these measures may be different from
non-GAAP financial measures used by other companies, limiting their
usefulness for comparison purposes. We compensate for these
limitations by providing specific information regarding the GAAP
amounts excluded from these non-GAAP financial measures.
We believe these non-GAAP financial measures provide investors
with useful supplemental information about the financial
performance of our business, enable comparison of financial results
between periods where certain items may vary independent of
business performance, and allow for greater transparency with
respect to key metrics used by management in operating our
business.
We exclude the following items from our non-GAAP financial
measures:
Foreign exchange effect on revenue. We translated revenue
for the three and six months ended June 30, 2021 using the
prior year's monthly exchange rates for our settlement or billing
currencies other than the U.S. dollar, which we believe is a useful
metric that facilitates comparison to our historical
performance.
Purchases of property and equipment; Principal payments on
finance leases. We subtract both purchases of property and
equipment and principal payments on finance leases in our
calculation of free cash flow because we believe that these two
items collectively represent the amount of property and equipment
we need to procure to support our business, regardless of whether
we procure such property or equipment with a finance lease. We
believe that this methodology can provide useful supplemental
information to help investors better understand underlying trends
in our business. Free cash flow is not intended to represent our
residual cash flow available for discretionary expenditures.
For more information on our non-GAAP financial measures and a
reconciliation of GAAP to non-GAAP measures, please see the
"Reconciliation of GAAP to Non-GAAP Results" table in this press
release.
FACEBOOK,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(In millions,
except for per share amounts)
|
(Unaudited)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
$
|
29,077
|
|
|
$
|
18,687
|
|
|
$
|
55,248
|
|
|
$
|
36,423
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
revenue
|
5,399
|
|
|
3,829
|
|
|
10,530
|
|
|
7,288
|
|
Research and
development
|
6,096
|
|
|
4,462
|
|
|
11,293
|
|
|
8,477
|
|
Marketing and
sales
|
3,259
|
|
|
2,840
|
|
|
6,102
|
|
|
5,627
|
|
General and
administrative
|
1,956
|
|
|
1,593
|
|
|
3,578
|
|
|
3,175
|
|
Total
costs and expenses
|
16,710
|
|
|
12,724
|
|
|
31,503
|
|
|
24,567
|
|
Income from
operations
|
12,367
|
|
|
5,963
|
|
|
23,745
|
|
|
11,856
|
|
Interest and other
income, net
|
146
|
|
|
168
|
|
|
271
|
|
|
136
|
|
Income before
provision for income taxes
|
12,513
|
|
|
6,131
|
|
|
24,016
|
|
|
11,992
|
|
Provision for income
taxes
|
2,119
|
|
|
953
|
|
|
4,124
|
|
|
1,911
|
|
Net
income
|
$
|
10,394
|
|
|
$
|
5,178
|
|
|
$
|
19,892
|
|
|
$
|
10,081
|
|
Earnings per share
attributable to Class A and Class B common
stockholders:
|
|
|
|
|
|
|
|
Basic
|
$
|
3.67
|
|
|
$
|
1.82
|
|
|
$
|
7.00
|
|
|
$
|
3.54
|
|
Diluted
|
$
|
3.61
|
|
|
$
|
1.80
|
|
|
$
|
6.90
|
|
|
$
|
3.51
|
|
Weighted-average
shares used to compute earnings per share attributable
to
|
|
|
|
|
|
|
|
Class A and Class
B common stockholders:
|
|
|
|
|
|
|
|
Basic
|
2,834
|
|
|
2,850
|
|
|
2,841
|
|
|
2,851
|
|
Diluted
|
2,877
|
|
|
2,879
|
|
|
2,881
|
|
|
2,876
|
|
Share-based
compensation expense included in costs and expenses:
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
|
163
|
|
|
$
|
117
|
|
|
$
|
281
|
|
|
$
|
211
|
|
Research and
development
|
1,967
|
|
|
1,261
|
|
|
3,376
|
|
|
2,260
|
|
Marketing and
sales
|
239
|
|
|
187
|
|
|
413
|
|
|
336
|
|
General and
administrative
|
179
|
|
|
130
|
|
|
309
|
|
|
223
|
|
Total
share-based compensation expense
|
$
|
2,548
|
|
|
$
|
1,695
|
|
|
$
|
4,379
|
|
|
$
|
3,030
|
|
|
|
|
FACEBOOK,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
millions)
|
(Unaudited)
|
|
|
|
June 30,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
16,186
|
|
|
$
|
17,576
|
|
|
Marketable
securities
|
47,894
|
|
|
44,378
|
|
|
Accounts receivable,
net of allowances of $108 and $114 as of June 30, 2021
|
|
|
|
|
|
|
and December 31,
2020, respectively
|
11,698
|
|
|
11,335
|
|
|
Prepaid expenses and
other current assets
|
4,919
|
|
|
2,381
|
|
|
|
Total current
assets
|
80,697
|
|
|
75,670
|
|
Equity
investments
|
6,393
|
|
|
6,234
|
|
Property and
equipment, net
|
50,909
|
|
|
45,633
|
|
Operating lease
right-of-use assets, net
|
10,525
|
|
|
9,348
|
|
Intangible assets,
net
|
514
|
|
|
623
|
|
Goodwill
|
19,219
|
|
|
19,050
|
|
Other
assets
|
2,352
|
|
|
2,758
|
|
Total
assets
|
$
|
170,609
|
|
|
$
|
159,316
|
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
|
973
|
|
|
$
|
1,331
|
|
|
Partners
payable
|
949
|
|
|
1,093
|
|
|
Operating lease
liabilities, current
|
1,051
|
|
|
1,023
|
|
|
Accrued expenses and
other current liabilities
|
11,510
|
|
|
11,152
|
|
|
Deferred revenue and
deposits
|
391
|
|
|
382
|
|
|
|
Total current
liabilities
|
14,874
|
|
|
14,981
|
|
Operating lease
liabilities, non-current
|
10,956
|
|
|
9,631
|
|
Other
liabilities
|
6,552
|
|
|
6,414
|
|
|
|
Total
liabilities
|
32,382
|
|
|
31,026
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock and
additional paid-in capital
|
52,845
|
|
|
50,018
|
|
|
Accumulated other
comprehensive income
|
285
|
|
|
927
|
|
|
Retained
earnings
|
85,097
|
|
|
77,345
|
|
|
|
Total stockholders'
equity
|
138,227
|
|
|
128,290
|
|
Total liabilities
and stockholders' equity
|
$
|
170,609
|
|
|
$
|
159,316
|
|
|
|
|
FACEBOOK,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net income
|
$
|
10,394
|
|
|
$
|
5,178
|
|
|
$
|
19,892
|
|
|
$
|
10,081
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
1,985
|
|
|
1,704
|
|
|
3,958
|
|
|
3,301
|
|
Share-based compensation
|
2,548
|
|
|
1,695
|
|
|
4,379
|
|
|
3,030
|
|
Deferred
income taxes
|
229
|
|
|
214
|
|
|
647
|
|
|
690
|
|
Other
|
(21)
|
|
|
43
|
|
|
(88)
|
|
|
49
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(1,366)
|
|
|
(122)
|
|
|
(517)
|
|
|
1,924
|
|
Prepaid
expenses and other current assets
|
(1,852)
|
|
|
(325)
|
|
|
(2,313)
|
|
|
(353)
|
|
Other
assets
|
(185)
|
|
|
3
|
|
|
(195)
|
|
|
(15)
|
|
Accounts
payable
|
116
|
|
|
(56)
|
|
|
(134)
|
|
|
(100)
|
|
Partners
payable
|
(61)
|
|
|
11
|
|
|
(133)
|
|
|
(158)
|
|
Accrued
expenses and other current liabilities
|
1,482
|
|
|
(3,995)
|
|
|
(200)
|
|
|
(3,016)
|
|
Deferred
revenue and deposits
|
3
|
|
|
15
|
|
|
9
|
|
|
(1)
|
|
Other
liabilities
|
(26)
|
|
|
(487)
|
|
|
184
|
|
|
(554)
|
|
Net cash provided
by operating activities
|
13,246
|
|
|
3,878
|
|
|
25,489
|
|
|
14,878
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(4,612)
|
|
|
(3,255)
|
|
|
(8,884)
|
|
|
(6,813)
|
|
Purchases of
marketable securities
|
(10,297)
|
|
|
(6,179)
|
|
|
(16,528)
|
|
|
(14,063)
|
|
Sales of marketable
securities
|
4,687
|
|
|
2,617
|
|
|
6,337
|
|
|
5,381
|
|
Maturities of
marketable securities
|
2,347
|
|
|
3,224
|
|
|
6,327
|
|
|
7,868
|
|
Acquisitions of
businesses, net of cash acquired, and purchases of intangible
assets
|
(259)
|
|
|
(339)
|
|
|
(259)
|
|
|
(372)
|
|
Other investing
activities
|
(61)
|
|
|
(245)
|
|
|
(62)
|
|
|
(288)
|
|
Net cash used in
investing activities
|
(8,195)
|
|
|
(4,177)
|
|
|
(13,069)
|
|
|
(8,287)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Taxes paid related to
net share settlement of equity awards
|
(1,354)
|
|
|
(753)
|
|
|
(2,432)
|
|
|
(1,444)
|
|
Repurchases of Class A
common stock
|
(7,079)
|
|
|
(1,369)
|
|
|
(11,018)
|
|
|
(2,618)
|
|
Principal payments on
finance leases
|
(123)
|
|
|
(109)
|
|
|
(274)
|
|
|
(209)
|
|
Net change in
overdraft in cash pooling entities
|
53
|
|
|
63
|
|
|
3
|
|
|
(17)
|
|
Other financing
activities
|
(45)
|
|
|
16
|
|
|
(13)
|
|
|
114
|
|
Net cash used in
financing activities
|
(8,548)
|
|
|
(2,152)
|
|
|
(13,734)
|
|
|
(4,174)
|
|
Effect of exchange
rate changes on cash, cash equivalents, and restricted
cash
|
117
|
|
|
93
|
|
|
(129)
|
|
|
(127)
|
|
Net increase
(decrease) in cash, cash equivalents, and restricted
cash
|
(3,380)
|
|
|
(2,358)
|
|
|
(1,443)
|
|
|
2,290
|
|
Cash, cash
equivalents, and restricted cash at beginning of the
period
|
19,891
|
|
|
23,927
|
|
|
17,954
|
|
|
19,279
|
|
Cash, cash
equivalents, and restricted cash at end of the
period
|
$
|
16,511
|
|
|
$
|
21,569
|
|
|
$
|
16,511
|
|
|
$
|
21,569
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents, and restricted cash to the
|
|
|
|
|
|
|
|
condensed
consolidated balance sheets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
16,186
|
|
|
$
|
21,045
|
|
|
$
|
16,186
|
|
|
$
|
21,045
|
|
Restricted cash,
included in prepaid expenses and other current assets
|
201
|
|
|
308
|
|
|
201
|
|
|
308
|
|
Restricted cash,
included in other assets
|
124
|
|
|
216
|
|
|
124
|
|
|
216
|
|
Total cash, cash
equivalents, and restricted cash
|
$
|
16,511
|
|
|
$
|
21,569
|
|
|
$
|
16,511
|
|
|
$
|
21,569
|
|
|
|
|
FACEBOOK,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Supplemental cash
flow data
|
|
|
|
|
|
|
|
Cash paid for income
taxes
|
$
|
3,387
|
|
|
$
|
1,041
|
|
|
$
|
6,294
|
|
|
$
|
1,250
|
|
Non-cash investing and
financing activities:
|
|
|
|
|
|
|
|
Property and equipment
in accounts payable and accrued expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other current liabilities
|
$
|
2,249
|
|
|
$
|
1,592
|
|
|
$
|
2,249
|
|
|
$
|
1,592
|
|
Acquisition of
businesses and other investments in accrued expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other current liabilities and other liabilities
|
$
|
73
|
|
|
$
|
316
|
|
|
$
|
73
|
|
|
$
|
316
|
|
Other current assets
through financing arrangements in accrued expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other current liabilities
|
$
|
381
|
|
|
$
|
—
|
|
|
$
|
381
|
|
|
$
|
—
|
|
Repurchases of Class A
common stock in accrued expenses and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
current
liabilities
|
$
|
310
|
|
|
$
|
46
|
|
|
$
|
310
|
|
|
$
|
46
|
|
|
|
|
Reconciliation of
GAAP to Non-GAAP Results
|
(In millions,
except percentages)
|
(Unaudited)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
GAAP
revenue
|
$
|
29,077
|
|
$
|
18,687
|
|
$
|
55,248
|
|
$
|
36,423
|
Foreign exchange
effect on 2021 revenue using 2020 rates
|
(982)
|
|
|
|
(1,688)
|
|
|
Revenue excluding
foreign exchange effect
|
$
|
28,095
|
|
|
|
$
|
53,560
|
|
|
GAAP revenue
year-over-year change %
|
56%
|
|
|
|
52%
|
|
|
Revenue excluding
foreign exchange effect year-over-year change %
|
50%
|
|
|
|
47%
|
|
|
GAAP advertising
revenue
|
$
|
28,580
|
|
$
|
18,321
|
|
$
|
54,018
|
|
$
|
35,760
|
Foreign exchange
effect on 2021 advertising revenue using 2020 rates
|
(975)
|
|
|
|
(1,670)
|
|
|
Advertising revenue
excluding foreign exchange effect
|
$
|
27,605
|
|
|
|
$
|
52,348
|
|
|
GAAP advertising
revenue year-over-year change %
|
56%
|
|
|
|
51%
|
|
|
Advertising revenue
excluding foreign exchange effect year-over-year change
%
|
51%
|
|
|
|
46%
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
13,246
|
|
$
|
3,878
|
|
$
|
25,489
|
|
$
|
14,878
|
Purchases of property and equipment
|
(4,612)
|
|
(3,255)
|
|
(8,884)
|
|
(6,813)
|
Principal payments on finance leases
|
(123)
|
|
(109)
|
|
(274)
|
|
(209)
|
Free cash
flow(1)
|
$
|
8,511
|
|
$
|
514
|
|
$
|
16,331
|
|
$
|
7,856
|
|
|
(1)
|
Free cash flow in the
second quarter and the first six months of 2020 reflects the $5.0
billion FTC settlement that was paid in April 2020.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/facebook-reports-second-quarter-2021-results-301343579.html
SOURCE Facebook