Meta: 2022 Q2 Earnings – Key Points to Know!
- Rupam Deb
- Aug 3, 2022
- 2 min read
Updated: Dec 2, 2024
Meta released its 2022 Q2 earnings in July 2022. Here are the key points that you don't want to miss for Meta from this earnings!
At the end of July 2022, Meta Platforms announced its 2022 second-quarter earnings, where the company saw its quarterly revenue drop for the first time. Let’s quickly take a look aNet income fell 36% to US$6.7 billion.t some highlights from Meta’s latest quarterly report that investors should know.
2022 Second-Quarter Financial Highlights
Here are some high-level numbers from Meta:
Meta’s total revenue fell 1% year-on-year to US$28.8 billion, down from US$29.1 billion last year.
Total expenses increased by 22% (or US$3.8 billion), driven mainly by increases in R&D expenses (of US$2.6 billion), which was up 43% year-on-year.
Operating income fell 32% to US$8.4 billion, with the operating profit margin falling substantially from 43% to 29%. Excluding the losses from Reality Labs, the operating profit margin (for Family of Apps) fell from 51% to 39%.
Net income fell 36% to US$6.7 billion.
The company’s operating cash flow decreased 8% year-on-year to US$12.2 billion. With capital expenditure increasing by 64% (driven by investments in servers, data centres and network infrastructure) to US$7.7 billion, free cash flow (FCF) declined by 48% to US$4.5 billion.
During the quarter, Meta spent US$5.1 billion (which was more than all of its FCF) to repurchase 26 million shares (or ~1% of its total shares). As of 30 June 2022, it had US$24.3 billion available and authorised for repurchases (or ~6% of its market capitalisation in end July 2022), and its total cash and cash equivalents and marketable securities stood at US$40.5 billion.
Meta’s revenue fell for the quarter mainly due to lower advertising revenue, which slowed throughout the second quarter as advertiser demand softened due to increased economic uncertainty.
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