Facebook Earnings: What Happened with FB

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Facebook Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
EPS Beat $3.22 $3.19
Revenue Miss $29.0B $29.5B
Monthly Active Users Match 2.9B 2.9B

Source: Predictions based connected analysts' statement from Visible Alpha

Facebook (FB) Financial Results: Analysis

Facebook, Inc. (FB) reported mixed Q3 FY 2021 earnings results. Earnings per share (EPS) bushed statement estimates, up 18.8% from the year-ago quarter's EPS. Revenue missed expert forecasts, expanding 35.1% twelvemonth implicit twelvemonth (YOY). The platform's monthly progressive users (MAUs) conscionable matched expectations. Facebook's shares roseate arsenic overmuch arsenic 9% successful after-hours trading. Over the past year, Facebook's shares person provided a total return of 18.7%, beneath the S&P 500's full instrumentality of 34.3%.

FB Monthly Active Users

Facebook's MAUs roseate 6% compared to the year-ago 4th to scope conscionable implicit 2.9 billion. MAUs are a cardinal metric Facebook uses to gauge the size of its planetary progressive idiosyncratic base. Facebook defines MAUs arsenic registered and logged-in users who visited Facebook done its website oregon a mobile device, oregon utilized its Messenger app, sometime during the 30 days of the measurement period.

The institution derives astir each of its gross done selling advertizing space, based mostly connected the spot of MAUs, connected its societal media sites and apps. The bigger its idiosyncratic base, the much charismatic its level is to advertisers. A bigger idiosyncratic basal besides makes it easier to pull caller users, arsenic radical privation to beryllium connected Facebook due to the fact that their friends are connected it—a classical illustration of the network effect.

New Facebook Reality Labs Segment

Facebook announced that it would commencement to interruption retired abstracted fiscal results for its caller Facebook Reality Labs (FRL) conception starting successful Q4 FY 2021. This conception volition beryllium focused connected the company's augmented and virtual world products and services. Facebook's different main operating conception volition beryllium named Family of Apps, which volition see the Facebook societal media platform, Instagram, Messenger, WhatsApp, and different services.

Facebook is investing expanding amounts of resources successful gathering what CEO Mark Zuckerberg calls the "metaverse"—an expansive virtual satellite that volition beryllium a successor to the mobile net and substance a caller question of exertion investment. Facebook plans to make arsenic galore arsenic 10,000 jobs successful the European Union implicit the adjacent 5 years to physique the metaverse. The institution is besides allegedly considering a sanction alteration to spell on with this refocus connected gathering the metaverse.

FB Whistleblowers

Facebook's societal media level has been getting a batch of antagonistic attraction lately aft erstwhile Facebook worker Frances Haugen came retired with extended interior documentation that she claims supports her allegations that determination are important flaws with the elephantine societal network. She testified earlier Congress earlier this month, arguing that the platform's flaws are detrimental to the information of children and democracy.

Another whistleblower has besides since travel retired and submitted an affidavit containing allegations astir Facebook's behavior, and Sophie Zhang, a erstwhile whistleblower, has go vocal against the institution again. Facebook's league telephone with analysts volition beryllium CEO Zuckerberg's archetypal clip speaking publically since Haugen began releasing documents.

FB Share Repurchases

Facebook announced successful its Q3 FY 2021 net study that it is expanding its share repurchases by $50 billion. The institution repurchased $14.4 cardinal of its Class A communal banal during the 3rd quarter.

The institution expects gross for Q4 FY 2021 to beryllium betwixt $31.5 cardinal and $34 billion, which reflects uncertainty from changes to Apple Inc.'s (AAPL) iOS 14 arsenic good arsenic macroeconomic and COVID-19-related factors. Facebook's adjacent net study (for Q4 FY 2021) is estimated to beryllium released connected Jan. 25, 2022.

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