Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

3ecf4a29e1851058cc295070a82562def5ea42aeaa3785364994c57cd8dd79f6

202af8ad18e344fd792e47ddbf9815e9e117ccd5f61b296f6e48bbdceddf29a4

a49f3a7d54448c59f52a188d5fdb0a93c03eff3b7a2d4d1d6b32eae75806c42c

United States and Canada

- United States

Europe

Asia-Pacific

- China

Rest of World

Total Revenue

576f10c7f9cdc5bc747ce91d4e33bbb33f54e2e1dadaa7d30c33a45530468e7d

Family of Apps

Reality Labs

Advertising

Payments and Other Fees

Other Revenue

8b507136fc387b5a0883d93f4b7cf373317c71c98d2006206250bf67bd953764

Family daily active people (billions)

Family daily active people year-over-year growth (percent)

Ad impressions delivered across our Family of Apps year-over-year growth (percent)

Average price per ad year-over-year growth (percent)

Headcount (count)

Headcount year-over-year growth (percent)

d9118fc295616799cf606a592d786963d0572ca956fb630ea6f0113f79da54f1

The surge in operating cash flow in Q4 2024 was primarily driven by a **significant increase in net income** compared to the previous year, along with **larger adjustments for non-cash items** such as increased depreciation, amortization, and share-based compensation. Additionally, **changes in working capital** components, including improvements in accounts receivable and accrued expenses, further contributed to the higher cash flow from operations.  **[0001326801-25-000014_meta-12312024xexhibit991.htm:6]** 

Why did Operating Cash Flow surge in Q4 2024?

Based on the documents, there isn’t a definitive explanation for what caused the extreme spike. One document reports **Other adjustments** of **87,717.00 USD millions** for Q4 2024 compared to **357.00 USD millions** for Q4 2023  **[0001326801-24-000012_meta-20231231.htm:128]** **[0001326801-25-000017_meta-20241231.htm:137]** , suggesting an enormous increase. However, another document states that the figures for Q4 2024 were **169 million USD** versus **124 million USD** in Q4 2023 and explains this as a relatively small change, not supporting the idea of an “extreme spike”.    In summary, the available documents do not provide a clear breakdown or detailed reasons for the change in Q4 2024, so the exact cause of the spike remains indeterminate.  **[0001326801-24-000012_meta-20231231.htm:128]** **[0001326801-25-000017_meta-20241231.htm:137]**  

What caused the extreme spike in Other adjustments to reconcile net income in Q4 2024?

The **Purchases of marketable debt securities** increased dramatically from **$1,171 million in Q4 2023** to **$10,898 million in Q4 2024**. According to the documents, while the specific reason for this increase is not explicitly stated, such changes are typically influenced by adjustments to a company's **cash management strategy**, investment in **liquid assets**, or a realignment in its portfolio of marketable securities to optimize returns or manage liquidity.  **[20250129SF05285:4]** 

Why did Purchases of marketable debt securities increase so dramatically in Q4 2024?

The documents do not provide a definitive explanation for the jump. They note that the **Prepaid expenses and other current assets** increased from **$3,793 million as of December 31, 2023**, to **$3,846 million as of June 30, 2024**. While it is mentioned that such changes could typically result from factors like increased prepayments for services, insurance, or other operational needs, no specific reasons for this unusual jump in Q2 2024 were provided.  **[20240731SF71872:4]** **[0001326801-24-000065_meta-06302024xexhibit991.htm:5]** 

What explains the unusual jump in Prepaid expenses and other current assets in Q2 2024?

The significant increase in full‐year operating cash flow in FY 2024 was primarily driven by **higher net income**—which rose to **$62,360 million** from **$39,098 million**—and **robust revenue growth** (with advertising revenue and increased ad pricing boosting overall revenue by **22%** year-over-year).  **[0001326801-25-000017_meta-20241231.htm:137]** **[0001326801-25-000014_meta-12312024xexhibit991.htm:6]**  In addition, **non-cash adjustments** played a substantial role, notably the increases in **share-based compensation expense** and **depreciation and amortization expense**, which enhanced operating cash flow. Improved **cash collections** from customers also contributed to the overall boost in operating cash flow, even as these gains were partially offset by higher cash payments for income taxes and other operational expenditures.  **[0001326801-25-000017_meta-20241231.htm:137]** **[0001326801-25-000017_meta-20241231.htm:123]** 

What drove the significant increase in full-year Operating Cash Flow in FY 2024?

c645526654635f6a212d2283af7974872ef46449bb30f98d6d6f23291a7c5d61

Meta's **Q4 2023 revenue** reached **$40.1 billion** due to several key factors. The primary driver was a **24% year-over-year increase in ad revenue** for its Family of Apps, which soared to **$38.7 billion** due to a **21% rise in ad impressions** and a **2% increase in average ad price**. Additionally, strong geographic performance—with notable growth in **Europe (33%)**, **Rest of World (32%)**, **Asia-Pacific (23%)**, and **North America (19%)**—along with favorable foreign exchange tailwinds, further boosted revenue. The company also benefited from an **82% increase** in business messaging revenue, particularly through the growth of the WhatsApp Business platform, and contributions from China-based advertisers, which accounted for **10% of total revenue**.  **[META_3371582_5]** **[META_3371582_6]** **[0001326801-24-000010_meta-12312023xexhibit991.htm:1]** 

Why was Revenue so high in Q4 2023?

In **Q3 2023**, Marketing and Sales expenses were notably lower primarily because Meta reduced its marketing spend as part of its efficiency efforts and decreased headcount-related costs due to layoffs, resulting in a **24% reduction** from **$3,780 million** in **Q3 2022** to **$2,877 million** in **Q3 2023**.  **[0001326801-23-000100_meta09302023-exhibit991.htm:0]** **[0001326801-23-000103_meta-20230930.htm:41]** 

Why were Marketing and Sales expenses notably lower in Q3 2023?

Meta's **General and Administrative costs** spiked in Q2 2023 primarily due to **accrued legal expenses**. Specifically, the expenses increased by **39%** compared to the same period in 2022, driven by **$1.87 billion** in legal expenses associated with a fine by the Irish Data Protection Commission and the introduction of new fining guidelines by the European Data Protection Board. This led to a **$1.30 billion increase** in accruals related to ongoing legal proceedings compared to the previous year.  **[0001326801-23-000093_meta-20230630.htm:44]** **[0001326801-23-000089_meta06302023-exhibit991.htm:5]** **[0001326801-23-000089_meta06302023-exhibit991.htm:0]** 

Why did General and Administrative costs spike in Q2 2023?

The **jump in Income from Operations in Q3 2023** was driven by several key factors. **Robust revenue growth** was a major contributor, with total revenue increasing by **23% year-over-year**, largely due to a **24% rise in advertising revenue** within the Family of Apps segment. At the same time, the company achieved significant **cost and expense reductions**—notably, declines in marketing, sales, and general administrative expenses, aided by a **24% reduction in headcount**. These efforts resulted in a remarkable improvement in the operating margin from **20% to 40%**. In addition, the Family of Apps segment itself experienced an **87% increase in income from operations**, which further bolstered overall performance despite the Reality Labs segment continuing to report losses.  **[0001326801-23-000100_meta09302023-exhibit991.htm:0]** **[0001326801-23-000103_meta-20230930.htm:41]** **[0001326801-23-000103_meta-20230930.htm:32]** 

What drove the jump in Income from Operations in Q3 2023?

Meta's significant increase in Basic EPS in Q3 2023 was driven by **higher net income** (rising from around **$4.395 billion** in Q3 2022 to **$11.583 billion** in Q3 2023), **strong revenue growth** (up **23%**, from approximately **$27.714 billion** to **$34.146 billion**), enhanced **cost efficiency** (with total costs and expenses falling **7%** from about **$22.050 billion** to **$20.398 billion**), an improved **operating margin** (increasing from **20%** to **40%**), and strategic **share repurchases** of roughly **$3.7 billion** that reduced the number of outstanding shares.  **[0001326801-23-000100_meta09302023-exhibit991.htm:0]** **[META_3361876_4]** **[0001326801-23-000103_meta-20230930.htm:14]** **[META_3361876_9]** 

What contributed to the significant increase in Basic EPS in Q3 2023?

239c9242d72cc20fd42a15ad50b0b84e8c95de7c2c5b754531c283c12d6f0fba

Cash and Cash Equivalents were lower in Q2 2022 because Meta experienced a **net decrease** driven by several key factors. During the period, the company generated strong operating cash flow of **$26,272 million**, but this was offset by significant uses of cash including **$11,738 million** in investing activities—largely due to **$13,013 million** spent on property and equipment, and net marketable debt securities transactions—and **$17,223 million** in financing activities primarily due to stock repurchases and associated tax payments. Additionally, adverse exchange rate changes reduced cash by **$698 million**, ultimately contributing to the decline observed in Q2 2022.  **[0001326801-22-000079_meta06302022-exhibit991.htm:4]** **[0001326801-22-000079_meta06302022-exhibit991.htm:5]** **[0001326801-22-000082_meta-20220630.htm:10]** 

Why was Cash and Cash Equivalents lower in Q2 2022?

The documents do not indicate a spike in Q4 2022. In fact, they show that **Accounts Receivable, Net** decreased from **$14,039 million** at the end of 2021 to **$13,466 million** in Q4 2022—a reduction of **$573 million**. The explanation provided notes that common factors affecting receivables include changes in revenue, customer payment cycles, or credit terms, with a **4% year-over-year decline in revenue** during Q4 2022 possibly playing a role, though no explicit mention of a spike was made.  **[0001326801-23-000008_meta-12312022xexhibit991.htm:6]** **[0001326801-23-000013_meta-20221231.htm:118]** **[0001326801-23-000008_meta-12312022xexhibit991.htm:0]** 

What drove the spike in Accounts Receivable in Q4 2022?

The documents indicate that **Prepaid Expenses and Other Current Assets** increased by **$683 million** between December 31, 2021, and September 30, 2022. However, they do not provide specific details on what caused this jump in prepaid expenses in Q3 2022. The observed change is typically attributable to variations in prepaid expenses, such as payments for software licenses, insurance premiums, or other upfront costs, as well as changes in other current asset items like short-term receivables or restricted cash.  **[0001326801-22-000105_meta09302022-exhibit991.htm:5]** **[0001326801-22-000108_meta-20220930.htm:7]** 

What caused the jump in Prepaid Expenses in Q3 2022?

Meta Platforms, Inc.'s Operating Lease Right-of-Use Assets peaked in Q2 2022 because the company entered into additional operating leases during the first half of 2022. Specifically, the assets increased as a result of new lease agreements totaling approximately **$8.58 billion**, primarily for data centers, offices, and network infrastructure, with lease terms from greater than one year to 30 years.  **[0001326801-22-000082_meta-20220630.htm:16]** 

Why did Operating Lease Right-of-Use Assets peak in Q2 2022?

The emergence of long-term debt in Q3 2022 was driven by the issuance of **$10 billion principal amount of fixed-rate senior unsecured notes** in August 2022. After accounting for discounts and issuance costs, the net proceeds totaled approximately **$9.92 billion**, which resulted in the reported long-term debt of **$9,922 million**. The funds raised were designated for **general corporate purposes** such as capital expenditures, share repurchases, acquisitions, or investments.  **[0001326801-22-000108_meta-20220930.htm:21]** 

What led to the emergence of Long-Term Debt in Q3 2022?

c4c54c7b6bad090f5b2df07d710ff879fa6651f9a14c5551457ab16627c8ae82

Revenue (USD, millions)

Cost of Revenue (USD, millions)

Research and Development (USD, millions)

Marketing and Sales (USD, millions)

General and Administrative (USD, millions)

Total Costs and Expenses (USD, millions)

Income from Operations (USD, millions)

Interest and Other Income (Expense), Net (USD, millions)

Income Before Provision for Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Net Income (USD, millions)

Basic Earnings per Share (USD)

Diluted Earnings per Share (USD)

7bdc1755f3b75ec0d51854258b2ec32c9b9615317a2e769a0aa4595f5b4d6377

Net income (USD, millions)

Depreciation and amortization (USD, millions)

Share-based compensation (USD, millions)

Impairment charges for facilities consolidation (USD, millions)

Data center assets abandonment (USD, millions)

Other adjustments to net income (USD, millions)

Other assets (changes) (USD, millions)

Other liabilities (changes) (USD, millions)

Net cash provided by operating activities (USD, millions)

Purchases of property and equipment (USD, millions)

Purchases of marketable securities (USD, millions)

Sales and maturities of marketable securities (USD, millions)

Acquisitions of businesses and intangible assets (USD, millions)

Other investing activities (USD, millions)

Net cash used in investing activities (USD, millions)

Taxes paid related to net share settlement of equity awards (USD, millions)

Repurchases of Class A common stock (USD, millions)

Payments for dividends and dividend equivalents (USD, millions)

Proceeds from issuance of long-term debt, net (USD, millions)

Principal payments on finance leases (USD, millions)

Other financing activities (USD, millions)

Net cash used in financing activities (USD, millions)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash (USD, millions)

Net increase (decrease) in cash, cash equivalents, and restricted cash (USD, millions)

Impairment charges for leases and leasehold improvements (USD, millions)

Deferred income taxes (USD, millions)

Accounts receivable (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Accounts payable (USD, millions)

Accrued expenses and other current liabilities (USD, millions)

Cash, cash equivalents, and restricted cash at beginning of the period (USD, millions)

Cash, cash equivalents, and restricted cash at end of the period (USD, millions)

9e6001425137d3a5995c0246d2baf4a1a0558718f9fe5ed93f98af899d01c3a7

Cash and cash equivalents (USD, millions)

Marketable securities (USD, millions)

Accounts receivable, net (USD, millions)

Total current assets (USD, millions)

Non-marketable equity securities (USD, millions)

Property and equipment, net (USD, millions)

Operating lease right-of-use assets (USD, millions)

Goodwill (USD, millions)

Other assets (USD, millions)

Total assets (USD, millions)

Operating lease liabilities, current (USD, millions)

Total current liabilities (USD, millions)

Operating lease liabilities, non-current (USD, millions)

Long-term debt (USD, millions)

Long-term income taxes (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Additional paid-in capital (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Retained earnings (USD, millions)

Total stockholders' equity (USD, millions)

Total liabilities and stockholders' equity (USD, millions)

137aadb89c7141d74c33a3832ada2a62d390114fb6a0329462181d098c1d1908

Meta Platforms Inc (META)

Financials