Meta Q1 Earnings FY22: Revenue fails to beat Estimates

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Meta Inc Q1 FY22

Revenue increases: Meta (formerly Facebook) reported revenue of $27.9 billion in the three months quarter ended on March 31 for fiscal 2022. This is around a 7% jump from the $26.2 billion of the same quarter of the previous year. The company, however, missed the analysts' estimate of $28.3 billion. The latest quarterly earnings proved to be good for Meta stocks as it soared in double digits after the result was announced. 

Decline in profit: Although Meta registered an increase in revenue, the total cost and expenses incurred by the company during the three month quarter cut down its profit. Facebook’s (now Meta) net income fell by 21% to $7.4 billion from $9.5 billion in the same quarter of the previous year. 

EPS : The diluted earning per share (EPS) managed to beat the estimates. Meta recorded an EPS of $2.72 against the expectation of $2.56. However, this is still an almost 18% decline from $3.30 in the same period of the previous year.

Operational and other financial highlights: As of March 31, 2022, Meta Platforms or Facebook has managed to produce satisfactory results on major operational fronts. Company’s saw an increase in 

  • Family daily active people (DAP) up by 6%,
  •  Family monthly active people (MAP) increased 6%,
  •  Facebook daily active users (DAUs) grew 4%,
  •  Facebook monthly active users (MAUs) gained 3%, and 
  • Ad impressions and price per ad have increased on a large note by 15%