Second-quarter revenue rose 28% to $60.8bn ($60.2bn expected). The number of people using at least one of Meta's apps on a daily basis rose 3% to 3.60bn. Ad impressions increased 14%, while average price per ad rose 12%.
Operating income fell 8% to $18.8bn ($21.8bn expected), with margins declining from 43% to 31%, largely driven by one-off legal and severance-related charges.
Free cash flow fell to $0.8bn, from $8.5bn in the same period last year, as capital expenditure rose to $31.1bn. Net debt, including lease liabilities, was $22.1bn.
Third-quarter revenue is expected to be in the range of $61-64bn. Full-year capital expenditure guidance now stands at $130-145bn (previously $125-145bn).
The shares fell 6.2% in after-hours trading.
Our view
HL view to follow.
Meta key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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