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Meta presents its 2021 results

There are 2,82 billion daily active user of all Meta platforms, of which facebook has 1.93 billion. This is an increase of 9% and %5 respectively, year-over-year, according to the Full Year 2021 Results that Meta Platforms Inc published this Wednesday.

Twelve Months Ended December 31,  %
2021 2020
Revenue              117,929                 85,965 37%
Costs and expenses:
Cost of revenue                 22,649                 16,692 36%
Research and development                 24,655                 18,447 34%
Marketing and sales                 14,043                 11,591 21%
General and administrative                   9,829                   6,564 50%
Total costs and expenses                 71,176                 53,294 34%
Income from operations                 46,753                 32,671 43%
Interest and other income, net                      531                      509 4%
Income before provision for income taxes                 47,284                 33,180 43%
Provision for income taxes                   7,914                   4,034 96%
Net income                 39,370                 29,146 35%

Obviously, all numbers show the business was good throughout the year, a 35% increase in net income. Despite of this, its stock price fell on Thursday by more 26%, to $237.76 from its previous close of $323 a day before it published its Fourth Quarter and Full Year 2021 Results.

Investors’ expectations of Meta’s performance were much higher. These results seem to have disappointed them. This was immediately reflected in the market.

Nonetheless Meta platforms Inc. has an optimistic outlook about its future performance. Its CFO stated “We expect first quarter 2022 total revenue to be in the range of $27-29 billion, which represents 3-11% year-over-year growth”.

Meta’s next reporting event is supposed to happen by the end of April 2022. Until then we will see if the market will regain trust and whether its stock price will recuperate to last year’s level. Or, maybe it will remain at its pre-pandemic level  at about $200.