Despite big tech posting the lowest growth in 10 years, earnings per share beat Wall Street’s expectations.
Meta released this Wednesday (27.Apr.2022) the financial results for the 1st quarter of 2022. Earnings per share above expectations and the increase in users on the company’s social networks made the shares of big tech go up about 19% in the aftermarket.
Revenue of $27.9 billion was below expectations. According to financial market data and infrastructure provider Refinitiv, the expectation was US$ 28.2 billion. Here’s the intact of the report (155 KB).
Meta’s apps (Facebook, Instagram and WhatsApp) were responsible for 97.5% of revenue. The rest of the winnings went to Reality Labs, part of big tech that builds products for the metaverse.
Meta’s earnings per share beat Wall Street’s expectations. The average analyst estimate was $2.56. However, the lowest growth in 10 years.
Here are the results of the Goal in the 1st quarter of 2022:
- Net profit: $7.5 billion ($9.5 in 2021, down 21%);
- Recipe: $27.9 ($26.17 in 2021, an increase of 7%);
- Earnings per share: $2.72 ($3.30 in 2021, down 18%);
- Active users per day: 2.87 billion;
- Active users per month: 3.64 billion;
- Active users per day on Facebook: 1.96 billion;
- Monthly active users on Facebook: 2.94 billion.
EXPECTATIONS FOR 2nd QUARTER
Meta expects total revenue on the next balance sheet to be between $28 billion and $30 billion. According to big tech, the war in Ukraine was a factor in the slow growth of the 1st quarter. The conflict should also impact earnings in the coming months.
The company expects the 2022 rate to be above the 1st quarter rate, if there are no changes in US tax law.
THE big tech will continue to monitor the feasibility of transatlantic data transfers and the impact on European transactions. Meta said it was pleased with the progress of a political agreement with the European Union.
The European Commission has reached a I agree on Saturday (22.Apr) on legislation to regulate big techs such as Meta and Alphabet (owner of Google and YouTube). The Digital Services Act requires companies to provide information to regulators and researchers about how the algorithms that control the content users interact with on platforms work. They also regulate ad targeting.
#Meta #shares #rise #balance #1st #quarter