NEWS RELEASE

Meta Reports Fourth Quarter and Full Year 2022 Results

MENLO PARK, Calif., Feb. 1, 2023 /PRNewswire/ -- Meta Platforms, Inc. (Nasdaq: META) today reported nancial
results for the quarter and full year ended December 31, 2022.

"Our community continues to grow and I'm pleased with the strong engagement across our apps. Facebook just
reached the milestone of 2 billion daily actives," said Mark Zuckerberg, Meta founder and CEO. "The progress we're
making on our AI discovery engine and Reels are major drivers of this. Beyond this, our management theme for
2023 is the 'Year of E ciency' and we're focused on becoming a stronger and more nimble organization."

Fourth Quarter and Full Year 2022 Financial Highlights

Three Months Ended December 31, Year Ended December 31,

2022 2021 2022 2021
In millions, except percentages
and per share amounts % Change % Change
$ 32,165 $ 33,671 (4) % $ 116,609 $ 117,929 (1) %
Revenue
25,766 21,086 22 % 87,665 71,176 23 %
Costs and expenses
$ 6,399 $ 12,585 (49) % $ 28,944 $ 46,753 (38) %
Income from operations
20 % 37 % 25 % 40 %
Operating margin
$ 1,497 $ 2,417 (38) % $ 5,619 $ 7,914 (29) %
Provision for income taxes
24 % 19 % 19 % 17 %
E ective tax rate
$ 4,652 $ 10,285 (55) % $ 23,200 $ 39,370 (41) %
Net income
$ 1.76 $ 3.67 (52) % $ 8.59 $ 13.77 (38) %
Diluted earnings per share (EPS)

Fourth Quarter and Full Year 2022 Operational and Other Financial Highlights

Family daily active people (DAP) – DAP was 2.96 billion on average for December 2022, an increase of 5% year-
over-year.
Family monthly active people (MAP) – MAP was 3.74 billion as of December 31, 2022, an increase of 4% year-
over-year.
Facebook daily active users (DAUs) – DAUs were 2.00 billion on average for December 2022, an increase of 4%
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 year-over-year.
Facebook monthly active users (MAUs) – MAUs were 2.96 billion as of December 31, 2022, an increase of 2%
year-over-year.
Ad impressions and price per ad – In the fourth quarter of 2022, ad impressions delivered across our Family
of Apps increased by 23% year-over-year and the average price per ad decreased by 22% year-over-year. For
the full year 2022, ad impressions increased by 18% year-over-year and the average price per ad decreased
by 16% year-over-year.
Revenue – Revenue was $32.17 billion and $116.61 billion, a decrease of 4% and 1% year-over-year for the
fourth quarter and full year 2022, respectively. Had foreign exchange rates remained constant with the same
periods of 2021, revenue would have been $2.01 billion and $5.96 billion higher, an increase of 2% and 4% on
a constant currency basis for the fourth quarter and full year 2022, respectively.
Costs and expenses – Total costs and expenses were $25.77 billion and $87.66 billion, an increase of 22% and
23% year-over-year for the fourth quarter and full year 2022, respectively. This includes charges related to our
restructuring e orts of $4.20 billion and $4.61 billion in the fourth quarter and full year 2022, respectively.
Capital expenditures – Capital expenditures, including principal payments on nance leases, were $9.22
billion and $32.04 billion for the fourth quarter and full year 2022, respectively.
Share repurchases – We repurchased $6.91 billion and $27.93 billion of our Class A common stock in the
fourth quarter and full year 2022, respectively. As of December 31, 2022, we had $10.87 billion available and
authorized for repurchases. We also announced today a $40 billion increase in our share repurchase
authorization.
Cash, cash equivalents, and marketable securities – Cash, cash equivalents, and marketable securities were
$40.74 billion as of December 31, 2022.
Long-term debt – Long-term debt was $9.92 billion as of December 31, 2022.
Headcount – Headcount was 86,482 as of December 31, 2022, an increase of 20% year-over-year. Our
reported headcount includes a substantial majority of the approximately 11,000 employees impacted by the
layo we announced in November 2022, who will no longer be re ected in our headcount by the end of the
rst quarter of 2023.

Restructuring

During the quarter ended December 31, 2022, we took several measures to pursue greater e ciency and to realign
our business and strategic priorities. This includes a facilities consolidation strategy to sublease, early terminate, or
abandon several o ce buildings under operating leases, a layo of approximately 11,000 of our employees across
the FoA and RL segments, and a pivot towards a next generation data center design, including cancellation of
multiple data center projects.

A summary of our restructuring charges during the three months ended December 31, 2022 by major activity type
is as follows (in millions):

Severance and
Facilities Other Personnel Data Center
Consolidation Costs Assets Total
$ 121 $ — $ 1,341 $ 1,462

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 Cost of revenue
1,080 408 — 1,488
Research and development
330 234 — 564
Marketing and sales
351 333 — 684
General and administrative
$ 1,882 $ 975 $ 1,341 $ 4,198
Total

Total restructuring charges recorded under our FoA segment were $3.76 billion and RL segment were $440 million
during the fourth quarter of 2022. Excluding these charges, our operating margin would have been 13 percentage
points higher, our e ective tax rate would have been one percentage point lower, and our diluted EPS would have
been $1.24 higher for the fourth quarter of 2022. The impact of the severance and other personnel costs recorded
in the fourth quarter of 2022 was not material after o setting with the savings from the decreases in payroll, bonus
and other bene ts expenses.

CFO Outlook Commentary

We expect rst quarter 2023 total revenue to be in the range of $26-28.5 billion. Our guidance assumes foreign
currency will be an approximately 2% headwind to year-over-year total revenue growth in the rst quarter, based
on current exchange rates.

We anticipate our full-year 2023 total expenses will be in the range of $89-95 billion, lowered from our prior outlook
of $94-100 billion due to slower anticipated growth in payroll expenses and cost of revenue. We now expect to
record an estimated $1 billion in restructuring charges in 2023 related to consolidating our o ce facilities footprint.
This is down from our prior estimate of $2 billion as we recorded a portion of the charges in the fourth quarter of
2022. We may incur additional restructuring charges as we progress further in our e ciency e orts.

We expect capital expenditures to be in the range of $30-33 billion, lowered from our prior estimate of $34-37
billion. The reduced outlook re ects our updated plans for lower data center construction spend in 2023 as we shift
to a new data center architecture that is more cost e cient and can support both AI and non-AI workloads.
Substantially all of our capital expenditures continue to support the Family of Apps.

Absent any changes to U.S. tax law, we expect our full-year 2023 tax rate percentage to be in the low twenties.

In addition, as previously noted, we continue to monitor developments regarding the viability of transatlantic data
transfers and their potential impact on our European operations.

Webcast and Conference Call Information

Meta will host a conference call to discuss the results at 2 p.m. PT / 5 p.m. ET today. The live webcast of Meta's
earnings conference call can be accessed at investor.fb.com, along with the earnings press release, nancial tables,
and slide presentation. Meta uses the investor.fb.com and about.fb.com/news/ websites as well as Mark
Zuckerberg's Facebook Page (facebook.com/zuck) and Instagram account (instagram.com/zuck) as means of
disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
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Following the call, a replay will be available at the same website. A telephonic replay will be available for one week
following the conference call at +1 (800) 633-8284 or +1 (402) 977-9140, conference ID 22025147.

Transcripts of conference calls with publishing equity research analysts held today will also be posted to the
investor.fb.com website.

About Meta

Meta builds technologies that help people connect, nd communities, and grow businesses. When Facebook
launched in 2004, it changed the way people connect. Apps like Messenger, Instagram and WhatsApp further
empowered billions around the world. Now, Meta is moving beyond 2D screens toward immersive experiences like
augmented and virtual reality to help build the next evolution in social technology.

Contacts

Investors:
Deborah Crawford
[email protected] / investor.fb.com

Press:
Ryan Moore
[email protected] / about.fb.com/news/

Forward-Looking Statements

This press release contains forward-looking statements regarding our future business plans and expectations.
These forward-looking statements are only predictions and may di er materially from actual results due to a variety
of factors including: the impact of macroeconomic conditions on our business and nancial results, including as a
result of the COVID-19 pandemic and geopolitical events; our ability to retain or increase users and engagement
levels; our reliance on advertising revenue; our dependency on data signals and mobile operating systems,
networks, and standards that we do not control; changes to the content or application of third-party policies that
impact our advertising practices; risks associated with new products and changes to existing products as well as
other new business initiatives, including our metaverse e orts; our emphasis on community growth and
engagement and the user experience over short-term nancial results; maintaining and enhancing our brand and
reputation; our ongoing privacy, safety, security, and content review e orts; competition; risks associated with
government actions that could restrict access to our products or impair our ability to sell advertising in certain
countries; litigation and government inquiries; privacy, legislative, and regulatory concerns or developments; risks
associated with acquisitions; security breaches; and our ability to manage our scale and geographically-dispersed
operations. These and other potential risks and uncertainties that could cause actual results to di er from the
results predicted are more fully detailed under the caption "Risk Factors" in our Quarterly Report on Form 10-Q
led with the SEC on October 27, 2022, which is available on our Investor Relations website at investor.fb.com and
on the SEC website at www.sec.gov. Additional information will also be set forth in our Annual Report on Form 10-K
for the year ended December 31, 2022. In addition, please note that the date of this press release is February 1,
2023, and any forward-looking statements contained herein are based on assumptions that we believe to be
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reasonable as of this date. We undertake no obligation to update these statements as a result of new information
or future events.

Non-GAAP Financial Measures

To supplement our condensed consolidated nancial statements, which are prepared and presented in accordance
with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP nancial
measures: revenue excluding foreign exchange e ect, advertising revenue excluding foreign exchange e ect, and
free cash ow. The presentation of these nancial measures is not intended to be considered in isolation or as a
substitute for, or superior to, nancial information prepared and presented in accordance with GAAP. Investors are
cautioned that there are material limitations associated with the use of non-GAAP nancial measures as an
analytical tool. In addition, these measures may be di erent from non-GAAP nancial measures used by other
companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing
speci c information regarding the GAAP amounts excluded from these non-GAAP nancial measures.

We believe these non-GAAP nancial measures provide investors with useful supplemental information about the
nancial performance of our business, enable comparison of nancial results between periods where certain items
may vary independent of business performance, and allow for greater transparency with respect to key metrics
used by management in operating our business.

We exclude the following items from our non-GAAP nancial measures:

Foreign exchange e ect on revenue. We translated revenue for the three months and full year ended December 31,
2022 using the prior year's monthly exchange rates for our settlement or billing currencies other than the U.S.
dollar, which we believe is a useful metric that facilitates comparison to our historical performance.

Purchases of property and equipment; Principal payments on nance leases. We subtract both purchases of
property and equipment, net of proceeds and principal payments on nance leases in our calculation of free cash
ow because we believe that these two items collectively represent the amount of property and equipment we
need to procure to support our business, regardless of whether we procure such property or equipment with a
nance lease. We believe that this methodology can provide useful supplemental information to help investors
better understand underlying trends in our business. Free cash ow is not intended to represent our residual cash
ow available for discretionary expenditures.

For more information on our non-GAAP nancial measures and a reconciliation of GAAP to non-GAAP measures,
please see the "Reconciliation of GAAP to Non-GAAP Results" table in this press release.

META PLATFORMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share amounts)
(Unaudited)

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 Three Months Ended December 31, Twelve Months Ended December 31,
2022 2021 2022 2021

$ 32,165 $ 33,671 $ 116,609 $ 117,929

Revenue
Costs and expenses:
8,336 6,348 25,249 22,649
Cost of revenue
9,771 7,046 35,338 24,655
Research and development
4,574 4,387 15,262 14,043
Marketing and sales
3,085 3,305 11,816 9,829
General and administrative
25,766 21,086 87,665 71,176
Total costs and expenses
6,399 12,585 28,944 46,753
Income from operations
(250) 117 (125) 531
Interest and other income (expense), net
6,149 12,702 28,819 47,284
Income before provision for income taxes
1,497 2,417 5,619 7,914
Provision for income taxes
$ 4,652 $ 10,285 $ 23,200 $ 39,370
Net income
Earnings per share attributable to Class A and Class B
common stockholders:
$ 1.76 $ 3.72 $ 8.63 $ 13.99
Basic
$ 1.76 $ 3.67 $ 8.59 $ 13.77
Diluted
Weighted-average shares used to compute earnings
per share attributable to Class A and Class B common
stockholders:
2,638 2,765 2,687 2,815
Basic
2,640 2,799 2,702 2,859
Diluted
Share-based compensation expense included in costs and
expenses:
$ 186 $ 149 $ 768 $ 577
Cost of revenue
2,366 1,882 9,361 7,106
Research and development
239 206 1,004 837
Marketing and sales
217 169 859 644
General and administrative
$ 3,008 $ 2,406 $ 11,992 $ 9,164
Total share-based compensation expense

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 META PLATFORMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
December 31, 2022 December 31, 2021
Assets
Current assets:
$ 14,681 $ 16,601
Cash and cash equivalents
26,057 31,397
Marketable securities
13,466 14,039
Accounts receivable, net
5,345 4,629
Prepaid expenses and other current assets
59,549 66,666
Total current assets
6,201 6,775
Non-marketable equity securities
79,518 57,809
Property and equipment, net
12,673 12,155
Operating lease right-of-use assets
897 634
Intangible assets, net
20,306 19,197
Goodwill
6,583 2,751
Other assets
$ 185,727 $ 165,987
Total assets

Liabilities and stockholders' equity

Current liabilities:
$ 4,990 $ 4,083
Accounts payable
1,117 1,052
Partners payable
1,367 1,127
Operating lease liabilities, current
19,552 14,873
Accrued expenses and other current liabilities
27,026 21,135
Total current liabilities
15,301 12,746
Operating lease liabilities, non-current
9,923 —
Long-term debt
7,764 7,227
Other liabilities
60,014 41,108
Total liabilities
Commitments and contingencies
Stockholders' equity:
64,444 55,811

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Common stock and additional paid-in capital
(3,530) (693)
Accumulated other comprehensive loss
64,799 69,761
Retained earnings
125,713 124,879
Total stockholders' equity
$ 185,727 $ 165,987
Total liabilities and stockholders' equity

META PLATFORMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2022 2021 2022 2021

Cash ows from operating activities

$ 4,652 $ 10,285 $ 23,200 $ 39,370
Net income
Adjustments to reconcile net income to net cash provided by
operating activities:
2,376 2,014 8,686 7,967
Depreciation and amortization
3,008 2,406 11,992 9,164
Share-based compensation
(1,173) 748 (3,286) 609
Deferred income taxes
1,805 — 2,218 —
Impairment charges for leases and leasehold improvements
1,341 — 1,341 —
Abandonment charges for data center assets
328 (16) 463 (232)
Fair value adjustments for non-marketable securities
244 50 178 105
Other
Changes in assets and liabilities:
(1,698) (2,038) 231 (3,110)
Accounts receivable
854 817 162 (1,750)
Prepaid expenses and other current assets
54 (165) (106) (349)
Other assets
876 876 210 1,436
Accounts payable
102 151 90 (12)
Partners payable
1,303 2,562 4,210 3,544
Accrued expenses and other current liabilities
439 414 886 941

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 Other liabilities
14,511 18,104 50,475 57,683
Net cash provided by operating activities
Cash ows from investing activities
(9,043) (5,401) (31,431) (18,690)
Purchases of property and equipment
55 31 245 123
Proceeds relating to property and equipment
(741) (6,093) (9,626) (30,407)
Purchases of marketable debt securities
1,750 16,340 11,083 31,671
Sales of marketable debt securities
513 1,598 2,075 10,915
Maturities of marketable debt securities
— (2) (5) (47)
Purchases of non-marketable equity securities
(62) (521) (1,312) (851)
Acquisitions of businesses and intangible assets
(3) (123) 1 (284)
Other investing activities
(7,531) 5,829 (28,970) (7,570)
Net cash provided by (used in) investing activities
Cash ows from nancing activities
(656) (1,507) (3,595) (5,515)
Taxes paid related to net share settlement of equity awards
(6,863) (20,063) (27,956) (44,537)
Repurchases of Class A common stock
— — 9,921 —
Proceeds from issuance of long-term debt, net
(235) (172) (850) (677)
Principal payments on nance leases
695 — 344 1
Other nancing activities
(7,059) (21,742) (22,136) (50,728)
Net cash used in nancing activities
424 (130) (638) (474)
E ect of exchange rate changes on cash, cash equivalents, and restricted cash
345 2,061 (1,269) (1,089)
Net increase (decrease) in cash, cash equivalents, and restricted cash
15,251 14,804 16,865 17,954
Cash, cash equivalents, and restricted cash at beginning of the period
$ 15,596 $ 16,865 $ 15,596 $ 16,865
Cash, cash equivalents, and restricted cash at end of the period

Reconciliation of cash, cash equivalents, and restricted cash to the

consolidated balance sheets
$ 14,681 $ 16,601 $ 14,681 $ 16,601
Cash and cash equivalents
294 149 294 149
Restricted cash, included in prepaid expenses and other current assets
621 115 621 115
Restricted cash, included in other assets
$ 15,596 $ 16,865 $ 15,596 $ 16,865
Total cash, cash equivalents, and restricted cash

META PLATFORMS, INC.

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 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2022 2021 2022 2021

Supplemental cash ow data

$ 1,760 $ 606 $ 6,407 $ 8,525
Cash paid for income taxes, net
Non-cash investing and nancing activities:
$ 3,319 $ 3,404 $ 3,319 $ 3,404
Property and equipment in accounts payable and accrued expenses
and other current liabilities
$ 291 $ 73 $ 291 $ 73
Acquisition of businesses in accrued expenses and other current
liabilities and other liabilities
$ 16 $ 508 $ 16 $ 508
Other current assets through nancing arrangement in accrued
expenses and other current liabilities
$ 310 $ 340 $ 310 $ 340
Repurchases of Class A common stock in accrued expenses and
other current liabilities

Segment Results

We report our nancial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA
includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes augmented and virtual reality
related consumer hardware, software, and content.

The following table presents our segment information of revenue and income (loss) from operations:

Segment Information
(In millions)
(Unaudited)
Three Months Ended December 31, Twelve Months Ended December 31,
2022 2021 2022 2021

Revenue:
$ 31,254 $ 32,639 $ 113,642 $ 114,934
Advertising
184 155 808 721
Other revenue
31,438 32,794 114,450 115,655
Family of Apps
727 877 2,159 2,274
Reality Labs
$ 32,165 $ 33,671 $ 116,609 $ 117,929
Total revenue
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Income (loss) from operations:
$ 10,678 $ 15,889 $ 42,661 $ 56,946
Family of Apps
(4,279) (3,304) (13,717) (10,193)
Reality Labs
$ 6,399 $ 12,585 $ 28,944 $ 46,753
Total income from operations

Reconciliation of GAAP to Non-GAAP Results

(In millions, except percentages)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2022 2021 2022 2021

$ 32,165 $ 33,671 $ 116,609 $ 117,929

GAAP revenue
2,012 5,956
Foreign exchange e ect on 2022 revenue using 2021 rates
$ 34,177 $ 122,565
Revenue excluding foreign exchange e ect
(4) % (1) %
GAAP revenue year-over-year change %
2 % 4 %
Revenue excluding foreign exchange e ect year-over-year change %
$ 31,254 $ 32,639 $ 113,642 $ 114,934
GAAP advertising revenue
1,977 5,896
Foreign exchange e ect on 2022 advertising revenue using 2021 rates
$ 33,231 $ 119,538
Advertising revenue excluding foreign exchange e ect
(4) % (1) %
GAAP advertising revenue year-over-year change %
2 % 4 %
Advertising revenue excluding foreign exchange e ect year-over-year change %

$ 14,511 $ 18,104 $ 50,475 $ 57,683

Net cash provided by operating activities
(8,988) (5,370) (31,186) (18,567)
Purchases of property and equipment, net
(235) (172) (850) (677)
Principal payments on nance leases
$ 5,288 $ 12,562 $ 18,439 $ 38,439
Free cash ow

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SOURCE Meta

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