Meta Platforms, Inc. (META) Bundle
A Brief History of Meta Platforms, Inc.
Meta Platforms, Inc., formerly known as Facebook, Inc., has undergone significant transformations since its inception in 2004. Founded by Mark Zuckerberg and his college roommates, the company started as a social networking site and has evolved into a global technology leader focusing on social media, virtual reality, and advertising.
Key Milestones
- 2004: Facebook is launched, initially limited to Harvard University students.
- 2012: Facebook goes public, raising $16 billion in one of the largest IPOs in tech history.
- 2014: Acquisition of WhatsApp for $19 billion and Oculus VR for $2 billion, marking a strategic pivot towards messaging and virtual reality.
- 2021: The company rebrands to Meta Platforms, Inc. to reflect its focus on the metaverse.
- 2024: Meta continues to expand its Family of Apps, which includes Facebook, Instagram, Messenger, and WhatsApp.
Financial Performance as of 2024
As of September 30, 2024, Meta reported total revenue of $40.59 billion for the third quarter, a 19% increase year-over-year, driven primarily by advertising revenue. The Family of Apps segment generated $40.32 billion, while Reality Labs contributed $270 million.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $40.59 billion | $34.15 billion | 19% |
| Net Income | $15.69 billion | $11.58 billion | 36% |
| Diluted EPS | $6.03 | $4.39 | 37% |
| Advertising Revenue | $39.45 billion | $32.84 billion | 20% |
| Capital Expenditures | $9.20 billion | N/A | N/A |
As of September 30, 2024, Meta's cash, cash equivalents, and marketable securities totaled $70.90 billion. The company reported long-term debt of $28.82 billion, with an effective tax rate of 12% for the third quarter.
Market Position and Strategic Initiatives
Meta's Family of Apps reported an average of 3.29 billion daily active users as of September 2024, reflecting a 5% year-over-year growth. The company has focused on enhancing its advertising platforms amid regulatory challenges affecting ad targeting capabilities. Notably, the average price per ad increased by 11% year-over-year in Q3 2024.
In terms of share repurchase programs, Meta repurchased $8.86 billion of its Class A common stock in the third quarter of 2024. The total amount authorized for repurchases remains at $51.28 billion as of September 30, 2024, following an additional $50 billion authorization in January 2024.
| Share Repurchase Activity | July 2024 | August 2024 | September 2024 | Total |
|---|---|---|---|---|
| Total Shares Purchased (in thousands) | 4,731 | 7,062 | 5,979 | 17,772 |
| Average Price Paid per Share | $466.70 | $504.21 | $509.99 | N/A |
Meta's strategic focus on the metaverse and investments in Reality Labs signify its intent to lead in emerging technologies, while its robust advertising business continues to be a primary revenue driver.
Workforce and Operational Changes
As of September 30, 2024, Meta's headcount reached 72,404, reflecting a 9% increase year-over-year. The company has also been navigating restructuring efforts aimed at enhancing operational efficiency and reducing costs.
In summary, Meta Platforms, Inc. has positioned itself as a leader in the tech industry, focusing on innovative technologies while maintaining a strong performance in its core advertising business.
For detailed financial data and insights, refer to the company's Q3 2024 financial report.
A Who Owns Meta Platforms, Inc. (META)
Ownership Structure
As of 2024, the ownership of Meta Platforms, Inc. is divided primarily between Class A and Class B shares. The total number of outstanding shares is approximately 2.524 billion shares of Class A and 344 million shares of Class B. Class B shares possess ten votes per share, while Class A shares have one vote per share, resulting in a significant voting power concentration among Class B shareholders.
Major Shareholders
As of September 30, 2024, the following table outlines the major shareholders of Meta Platforms, Inc. along with their respective ownership percentages:
| Shareholder | Type of Share | Shares Owned (millions) | Ownership Percentage |
|---|---|---|---|
| Mark Zuckerberg | Class B | 344 | 13.6% |
| Institutional Investors | Class A | 1,500 | 59.3% |
| Other Individual Shareholders | Class A | 1,180 | 27.1% |
Institutional Ownership
Institutional investors hold a significant portion of Meta Platforms, Inc. shares. As of the end of Q3 2024, approximately 59.3% of Class A shares are held by institutional investors. The following table provides details on the top institutional shareholders:
| Institution | Shares Owned (millions) | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 350 | 13.9% |
| BlackRock, Inc. | 325 | 12.8% |
| State Street Corporation | 280 | 11.0% |
| Fidelity Investments | 200 | 7.9% |
Recent Shareholder Actions
In 2024, Meta Platforms, Inc. initiated a share repurchase program. The company repurchased 65 million shares of Class A common stock for an aggregate amount of $29.81 billion during the nine months ended September 30, 2024. This includes the impact of the 1% excise tax due to the Inflation Reduction Act of 2022.
Dividends and Financial Performance
In February 2024, Meta Platforms, Inc. declared quarterly cash dividends of $0.50 per share for Class A and Class B common stock. Total dividend payments during the three months ended September 30, 2024, amounted to approximately $1.26 billion. The financial performance for the third quarter of 2024 is summarized below:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $40.59 billion | $34.15 billion |
| Net Income | $15.69 billion | $11.58 billion |
| Earnings Per Share (Diluted) | $6.03 | $4.39 |
Conclusion on Ownership Dynamics
The ownership structure of Meta Platforms, Inc. reflects a concentrated voting power mainly held by Mark Zuckerberg through Class B shares, complemented by substantial institutional investment in Class A shares. This dynamic influences company decisions and strategic direction, underscoring the significance of shareholder composition in corporate governance.
Meta Platforms, Inc. (META) Mission Statement
Meta Platforms, Inc.'s mission statement as of 2024 is: "to give people the power to build community and bring the world closer together." This guiding principle reflects the company's focus on connecting users through its various platforms, including Facebook, Instagram, WhatsApp, and Messenger.
Financial Overview
As of the third quarter of 2024, Meta Platforms reported significant growth in its financial performance:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $40.59 billion | $34.15 billion | 19% |
| Net Income | $15.69 billion | $11.58 billion | 36% |
| Earnings Per Share (Diluted) | $6.03 | $4.39 | 37% |
| Operating Income | $17.35 billion | $13.75 billion | 26% |
| Advertising Revenue | $39.89 billion | $33.64 billion | 19% |
| Family Daily Active People (DAP) | 3.29 billion | 3.14 billion | 5% |
| Average Revenue Per Person (ARPPU) | $12.29 | $10.93 | 12% |
Segment Performance
Meta Platforms divides its operations into two primary segments: Family of Apps (FoA) and Reality Labs (RL). The performance metrics for these segments as of Q3 2024 are as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | % Change |
|---|---|---|---|
| Family of Apps | $40.32 billion | $33.94 billion | 19% |
| Reality Labs | $270 million | $210 million | 29% |
Costs and Expenses
In Q3 2024, Meta's costs and expenses were as follows:
| Cost Type | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Costs and Expenses | $23.24 billion | $20.40 billion | 14% |
| Cost of Revenue | $7.38 billion | $6.21 billion | 19% |
| Research and Development | $11.18 billion | $9.24 billion | 21% |
| Marketing and Sales | $2.82 billion | $2.88 billion | (2)% |
| General and Administrative | $1.87 billion | $2.07 billion | (10)% |
Investment and Capital Returns
In the third quarter of 2024, Meta Platforms engaged in significant capital returns and investments:
| Activity | Amount |
|---|---|
| Share Repurchases | $8.86 billion |
| Dividends Paid | $1.26 billion |
| Capital Expenditures | $9.20 billion |
Liquidity and Cash Flow
As of September 30, 2024, Meta Platforms reported the following in terms of liquidity and cash flow:
| Metric | Amount |
|---|---|
| Cash, Cash Equivalents, and Marketable Securities | $70.90 billion |
| Net Cash Provided by Operating Activities | $63.34 billion |
| Net Cash Used in Investing Activities | $(25.65 billion) |
| Net Cash Used in Financing Activities | $(35.32 billion) |
How Meta Platforms, Inc. (META) Works
Overview of Financial Performance
Total revenue for the third quarter of 2024 was $40.59 billion, an increase of 19% compared to the third quarter of 2023. The revenue growth was driven primarily by an increase in advertising revenue, which reached $39.89 billion for the quarter, a 19% increase year-over-year.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $40.59 billion | $34.15 billion | 19% |
| Advertising Revenue | $39.89 billion | $33.64 billion | 19% |
| Net Income | $15.69 billion | $11.58 billion | 36% |
| EPS (Diluted) | $6.03 | $4.39 | 37% |
Segment Performance
Meta Platforms operates through two primary segments: Family of Apps (FoA) and Reality Labs (RL). For Q3 2024, the performance of these segments was as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | % Change |
|---|---|---|---|
| Family of Apps | $40.32 billion | $33.94 billion | 19% |
| Reality Labs | $270 million | $210 million | 29% |
Operating Expenses
Total operating expenses for the third quarter of 2024 were $23.24 billion, up 14% from $20.40 billion in the same quarter of 2023. The breakdown of operating expenses is as follows:
| Expense Type | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Cost of Revenue | $7.38 billion | $6.21 billion | 19% |
| Research and Development | $11.18 billion | $9.24 billion | 21% |
| Marketing and Sales | $2.82 billion | $2.88 billion | -2% |
| General and Administrative | $1.87 billion | $2.07 billion | -10% |
Advertising Metrics
In Q3 2024, the Family daily active people (DAP) averaged 3.29 billion, a 5% increase year-over-year. The advertising metrics showed that ad impressions delivered increased by 7% year-over-year, while the average price per ad grew by 11% year-over-year.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Daily Active People (DAP) | 3.29 billion | 3.14 billion | 5% |
| Ad Impressions Delivered | Increased by 7% | N/A | N/A |
| Average Price Per Ad | Increased by 11% | Decreased by 6% | N/A |
Cash Flow and Capital Expenditures
Cash, cash equivalents, and marketable securities totaled $70.90 billion as of September 30, 2024. Capital expenditures were $9.20 billion for the third quarter.
Shareholder Returns
Meta Platforms declared a quarterly dividend of $0.50 per share starting February 2024. For Q3 2024, total dividend and dividend equivalent payments amounted to $1.26 billion.
Debt and Share Repurchases
As of September 30, 2024, long-term debt stood at $28.82 billion. Share repurchases during Q3 2024 totaled $8.86 billion.
Employee Metrics
The headcount at Meta Platforms was 72,404 as of September 30, 2024, reflecting a 9% increase year-over-year.
How Meta Platforms, Inc. (META) Makes Money
Revenue Segments
Meta Platforms, Inc. generates revenue primarily through two segments: Family of Apps (FoA) and Reality Labs (RL).
Family of Apps (FoA)
The FoA segment includes Facebook, Instagram, Messenger, and WhatsApp. As of the third quarter of 2024, FoA revenue was $40.32 billion, representing a 19% increase from the previous year. Advertising remains the dominant source of revenue, accounting for $39.89 billion of the total revenue in this segment.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Advertising | $39,885 | $33,643 | 19% |
| Other Revenue | $434 | $293 | 48% |
| Total FoA Revenue | $40,319 | $33,936 | 19% |
Advertising Revenue
Advertising revenue is primarily generated by displaying ads within the Family of Apps. The average price per ad increased by 11% year-over-year, while ad impressions delivered grew by 7% in Q3 2024. This growth in advertising revenue is attributed to increased user engagement and improvements in ad targeting and measurement tools.
For the nine months ended September 30, 2024, advertising revenue totaled $113.85 billion, a 22% increase compared to the same period in 2023.
Reality Labs (RL)
The RL segment encompasses Meta's virtual and augmented reality initiatives, including consumer hardware such as the Meta Quest. In Q3 2024, RL generated $270 million in revenue, reflecting a 29% increase year-over-year.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Reality Labs Revenue | $270 | $210 | 29% |
Overall Financial Performance
For the third quarter of 2024, Meta's total revenue reached $40.59 billion, a 19% increase compared to Q3 2023. The company reported a net income of $15.69 billion, with diluted earnings per share (EPS) of $6.03.
Cost Structure
Meta's total costs and expenses for Q3 2024 were $23.24 billion, up from $20.40 billion in Q3 2023. Key components of costs include:
- Cost of Revenue: $7.38 billion
- Research and Development: $11.18 billion
- Marketing and Sales: $2.82 billion
- General and Administrative: $1.87 billion
| Cost Component | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Cost of Revenue | $7,375 | $6,210 | 19% |
| Research and Development | $11,177 | $9,241 | 21% |
| Marketing and Sales | $2,822 | $2,877 | -2% |
| General and Administrative | $1,865 | $2,070 | -10% |
| Total Costs and Expenses | $23,239 | $20,398 | 9% |
Cash Flow and Capital Expenditures
Cash provided by operating activities for the nine months ended September 30, 2024, was $63.34 billion. Capital expenditures during this period were approximately $24.39 billion, primarily for investments in data centers and infrastructure.
Market Trends and User Metrics
As of September 2024, Meta reported 3.29 billion daily active users across its Family of Apps, a 5% increase from the prior year. The company continues to focus on enhancing user engagement and expanding its advertising capabilities.
Meta's ongoing investment in AI and infrastructure is expected to further strengthen its revenue-generating capabilities in the coming years.
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Article updated on 8 Nov 2024
Resources:
- Meta Platforms, Inc. (META) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Meta Platforms, Inc. (META)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Meta Platforms, Inc. (META)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.