Meta Platforms, Inc. Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Community size continues to grow across Meta’s Family of Apps, reaching more than 3.7 billion monthly active users (MAUs).
  • Despite macroeconomic weakness, foreign‑exchange headwinds, and challenges from Apple’s ATT changes, Meta expects revenue growth to improve in 2023.
  • Key investment areas include Meta’s AI discovery engine, ads and business messaging, and the metaverse.
  • Meta plans to operate more efficiently in 2023, with headcount expected to end roughly flat versus 2022.

Financial Highlights (Compared to Q3 2021)

  • Total revenue: $27.7B, down 4% (up 2% in constant currency). FX headwinds reduced revenue by approx. $1.8B.
  • Total expenses: $22.1B, up 19%, including a $413M impairment related to office footprint reduction.
  • Operating income: $5.7B, down from $10.4B last year, with margins dropping to 20%.
  • Net income: $4.4B ($1.64/share), down from $9.2B last year.
  • Free cash flow: $173M, down significantly from $9.5B in Q3 2021.
  • Capital expenditures: $9.5B, driven by servers, data centers, and network investments.

Family of Apps (FoA)

  • Facebook DAUs: 1.98B (up 3%, +54M); MAUs: 2.96B (up 2%, +48M).
  • Total FoA revenue: $27.4B, down 4%.
  • Ad revenue: $27.2B, down 4% but up 3% in constant currency.
  • Ad impressions: +17%; price per ad: –18% due to mix shift, FX, and weak advertiser demand.

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Operator: Good afternoon. My name is Martin and I will be your conference operator today. At this time, I would like to welcome everyone to the Meta Third Quarter Earnings Conference Call. [Operator Instructions] This call will be recorded. Thank you very much. Ms. Deborah Crawford, Meta’s Vice President of Investor Relations, you may begin. Deborah Crawford: Thank you. Good afternoon and welcome to Meta Platforms third quarter 2022 earnings conference call. Joining me today to discuss our results are Mark Zuckerberg, CEO; and Dave Wehner, CFO. Susan Li, VP of Finance and our Incoming CFO and Marne Levine, Chief Business Officer, are also on the call and will join Mark and Dave for the Q&A portion. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in today’s press release and in our quarterly report on Form 10-Q filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today and we undertake no obligation to update these statements as a result of new information or future events. During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today’s earnings press release. The press release and an

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