Meta Platforms, Inc 8-K, filed Oct 29, 2020

Meta Platforms, Inc. (META)

8-K 2020-10-29 For: 2020-10-29

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Added on April 07, 2026

About this 8-K

Meta Platforms, Inc filed this 8-K on October 29, 2020.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Delaware	001-35551	20-1665019

(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)



☐		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))



Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.000006 par value	FB	The Nasdaq Stock Market LLC



Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company		☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.		☐



Exhibit Number		Exhibit Title or Description
99.1		Press release dated October 29, 2020
104		Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document)




		FACEBOOK, INC.

Date:	October 29, 2020	By:	/s/ David Kling
			Name: David Kling
			Title: Vice President, Deputy General Counsel and Secretary



	Three Months Ended September 30,						Year-over-Year % Change
In millions, except percentages and per share amounts	2020⁽¹⁾			2019			Year-over-Year % Change
Revenue:
Advertising	$	21,221		$	17,383		22%
Other	249			269			(7)%
Total revenue	21,470			17,652			22%
Total costs and expenses	13,430			10,467			28%
Income from operations	$	8,040		$	7,185		12%
Operating margin	37		%	41		%
Provision for income taxes	$	287		$	1,238		(77)%
Effective tax rate	4		%	17		%
Net income	$	7,846		$	6,091		29%
Diluted earnings per share (EPS)	$	2.71		$	2.12		28%


•	Facebook daily active users (DAUs) – DAUs were 1.82 billion on average for September 2020, an increase of 12% year-over-year.


•	Facebook monthly active users (MAUs) – MAUs were 2.74 billion as of September 30, 2020, an increase of 12% year-over-year.


•	Family daily active people (DAP) – DAP was 2.54 billion on average for September 2020, an increase of 15% year-over-year.


•	Family monthly active people (MAP) – MAP was 3.21 billion as of September 30, 2020, an increase of 14% year-over-year.


•	Capital expenditures – Capital expenditures, including principal payments on finance leases, were $3.88 billion for the third quarter of 2020.


•	Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $55.62 billion as of September 30, 2020.


•	Headcount – Headcount was 56,653 as of September 30, 2020, an increase of 32% year-over-year.



FACEBOOK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In millions, except for per share amounts)
(Unaudited)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenue	$	21,470	$	17,652	$	57,893	$	49,615
Costs and expenses:
Cost of revenue	4,194		3,155		11,482		9,279
Research and development	4,763		3,548		13,240		9,722
Marketing and sales	2,683		2,416		8,310		6,850
General and administrative	1,790		1,348		4,965		8,636
Total costs and expenses	13,430		10,467		37,997		34,487
Income from operations	8,040		7,185		19,896		15,128
Interest and other income, net	93		144		229		515
Income before provision for income taxes	8,133		7,329		20,125		15,643
Provision for income taxes	287		1,238		2,198		4,507
Net income	$	7,846	$	6,091	$	17,927	$	11,136
Earnings per share attributable to Class A and Class B common stockholders:
Basic	$	2.75	$	2.13	$	6.29	$	3.90
Diluted	$	2.71	$	2.12	$	6.22	$	3.87
Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders:
Basic	2,850		2,854		2,850		2,855
Diluted	2,891		2,874		2,883		2,875
Share-based compensation expense included in costs and expenses:
Cost of revenue	$	116	$	91	$	327	$	287
Research and development	1,297		907		3,557		2,557
Marketing and sales	180		148		516		421
General and administrative	129		103		352		297
Total share-based compensation expense	$	1,722	$	1,249	$	4,752	$	3,562



FACEBOOK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
			September 30, 2020		December 31, 2019
Assets
Current assets:
	Cash and cash equivalents		$	11,617	$	19,079
	Marketable securities		44,003		35,776
	Accounts receivable, net of allowances of $311 and $206 as of September 30, 2020 and December 31, 2019, respectively		8,024		9,518
	Prepaid expenses and other current assets		2,155		1,852
		Total current assets	65,799		66,225
Equity investments			6,164		86
Property and equipment, net			42,291		35,323
Operating lease right-of-use assets, net			9,439		9,460
Intangible assets, net			744		894
Goodwill			19,031		18,715
Other assets			2,969		2,673
Total assets			$	146,437	$	133,376

Liabilities and stockholders' equity
Current liabilities:
	Accounts payable		$	1,106	$	1,363
	Partners payable		800		886
	Operating lease liabilities, current		975		800
	Accrued expenses and other current liabilities		8,684		11,735
	Deferred revenue and deposits		379		269
		Total current liabilities	11,944		15,053
Operating lease liabilities, non-current			9,641		9,524
Other liabilities			7,121		7,745
		Total liabilities	28,706		32,322
Commitments and contingencies
Stockholders' equity:
	Common stock and additional paid-in capital		48,910		45,851
	Accumulated other comprehensive income (loss)		308		(489		)
	Retained earnings		68,513		55,692
		Total stockholders' equity	117,731		101,054
Total liabilities and stockholders' equity			$	146,437	$	133,376



FACEBOOK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Cash flows from operating activities
Net income	$	7,846		$	6,091		$	17,927		$	11,136
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,698			1,416			4,999			4,273
Share-based compensation	1,722			1,249			4,752			3,562
Deferred income taxes	(1,506		)	175			(816		)	358
Other	7			30			56			44
Changes in assets and liabilities:
Accounts receivable	(377		)	(328		)	1,547			(264		)
Prepaid expenses and other current assets	264			(360		)	(89		)	(527		)
Other assets	6			—			(8		)	66
Accounts payable	139			89			39			2
Partners payable	58			39			(100		)	59
Accrued expenses and other current liabilities	(258		)	457			(3,273		)	6,439
Deferred revenue and deposits	112			31			111			82
Other liabilities	117			418			(438		)	2,001
Net cash provided by operating activities	9,828			9,307			24,707			27,231
Cash flows from investing activities
Purchases of property and equipment, net	(3,689		)	(3,532		)	(10,502		)	(11,002		)
Purchases of marketable securities	(14,130		)	(7,397		)	(28,193		)	(19,152		)
Sales of marketable securities	4,398			2,946			9,779			7,402
Maturities of marketable securities	2,857			2,943			10,725			7,048
Purchases of equity investments	(6,020		)	—			(6,302		)	(61		)
Acquisitions of businesses, net of cash acquired, and purchases of intangible assets	(12		)	(10		)	(384		)	(63		)
Other investing activities, net	(3		)	—			(9		)	—
Net cash used in investing activities	(16,599		)	(5,050		)	(24,886		)	(15,828		)
Cash flows from financing activities
Taxes paid related to net share settlement of equity awards	(1,000		)	(591		)	(2,444		)	(1,710		)
Repurchases of Class A common stock	(1,725		)	(1,148		)	(4,343		)	(2,906		)
Principal payments on finance leases	(189		)	(144		)	(398		)	(411		)
Net change in overdraft in cash pooling entities	(8		)	(141		)	(24		)	(260		)
Other financing activities, net	10			5			124			14



Reconciliation of GAAP to Non-GAAP Results
(In millions, except percentages)
(Unaudited)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
GAAP revenue	$	21,470		$	17,652		$	57,893		$	49,615
Foreign exchange effect on 2020 revenue using 2019 rates	(114		)				459
Revenue excluding foreign exchange effect	$	21,356					$	58,352
GAAP revenue year-over-year change %	22		%				17		%
Revenue excluding foreign exchange effect year-over-year change %	21		%				18		%
GAAP advertising revenue	$	21,221		$	17,383		$	56,981		$	48,919
Foreign exchange effect on 2020 advertising revenue using 2019 rates	(109		)				462
Advertising revenue excluding foreign exchange effect	$	21,112					$	57,443
GAAP advertising revenue year-over-year change %	22		%				16		%
Advertising revenue excluding foreign exchange effect year-over-year change %	21		%				17		%

Net cash provided by operating activities	$	9,828		$	9,307		$	24,707		$	27,231
Purchases of property and equipment, net	(3,689		)	(3,532		)	(10,502		)	(11,002		)
Principal payments on finance leases	(189		)	(144		)	(398		)	(411		)
Free cash flow ⁽¹⁾	$	5,950		$	5,631		$	13,807		$	15,818