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Three Months Ended December 31, |
Year-over-Year % Change |
Year Ended December 31, |
Year-over-Year % Change |
||||||||||||||||
In millions, except percentages and per share amounts |
2019 |
2018 |
2019 |
2018 |
|||||||||||||||
Revenue: |
|||||||||||||||||||
Advertising |
$ |
20,736 |
$ |
16,640 |
25% |
$ |
69,655 |
$ |
55,013 |
27% |
|||||||||
Other |
346 |
274 |
26% |
1,042 |
825 |
26% |
|||||||||||||
Total revenue |
21,082 |
16,914 |
25% |
70,697 |
55,838 |
27% |
|||||||||||||
Total costs and expenses |
12,224 |
9,094 |
34% |
46,711 |
30,925 |
51% |
|||||||||||||
Income from operations |
$ |
8,858 |
$ |
7,820 |
13% |
$ |
23,986 |
$ |
24,913 |
(4)% |
|||||||||
Operating margin |
42 |
% |
46 |
% |
34 |
% |
45 |
% |
|||||||||||
Provision for income taxes |
$ |
1,820 |
$ |
1,089 |
67% |
$ |
6,327 |
$ |
3,249 |
95% |
|||||||||
Effective tax rate |
20 |
% |
14 |
% |
25 |
% |
13 |
% |
|||||||||||
Net income |
$ |
7,349 |
$ |
6,882 |
7% |
$ |
18,485 |
$ |
22,112 |
(16)% |
|||||||||
Diluted earnings per share (EPS) |
$ |
2.56 |
$ |
2.38 |
8% |
$ |
6.43 |
$ |
7.57 |
(15)% |
• |
Facebook daily active users (DAUs) – DAUs were 1.66 billion on average for December 2019, an increase of 9% year-over-year.
|
• |
Facebook monthly active users (MAUs) – MAUs were 2.50 billion as of December 31, 2019, an increase of 8% year-over-year.
|
• |
Family daily active people (DAP) – DAP was 2.26 billion on average for December 2019, an increase of 11% year-over-year.
|
• |
Family monthly active people (MAP) – MAP was 2.89 billion as of December 31, 2019, an increase of 9% year-over-year.
|
• |
Capital expenditures – Capital expenditures, including principal payments on finance leases, were $4.24 billion and $15.65 billion for the fourth quarter and full year 2019, respectively.
|
• |
Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $54.86 billion as of December 31, 2019.
|
• |
Headcount – Headcount was 44,942 as of December 31, 2019, an increase of 26% year-over-year.
|
FACEBOOK, INC. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(In millions, except for per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||||||
Revenue |
$ |
21,082 |
$ |
16,914 |
$ |
70,697 |
$ |
55,838 |
|||||||
Costs and expenses: |
|||||||||||||||
Cost of revenue |
3,492 |
2,796 |
12,770 |
9,355 |
|||||||||||
Research and development |
3,877 |
2,855 |
13,600 |
10,273 |
|||||||||||
Marketing and sales |
3,026 |
2,467 |
9,876 |
7,846 |
|||||||||||
General and administrative |
1,829 |
976 |
10,465 |
3,451 |
|||||||||||
Total costs and expenses |
12,224 |
9,094 |
46,711 |
30,925 |
|||||||||||
Income from operations |
8,858 |
7,820 |
23,986 |
24,913 |
|||||||||||
Interest and other income, net |
311 |
151 |
826 |
448 |
|||||||||||
Income before provision for income taxes |
9,169 |
7,971 |
24,812 |
25,361 |
|||||||||||
Provision for income taxes |
1,820 |
1,089 |
6,327 |
3,249 |
|||||||||||
Net income |
$ |
7,349 |
$ |
6,882 |
$ |
18,485 |
$ |
22,112 |
|||||||
Less: Net income attributable to participating securities |
— |
— |
— |
(1 |
) |
||||||||||
Net income attributable to Class A and Class B common stockholders |
$ |
7,349 |
$ |
6,882 |
$ |
18,485 |
$ |
22,111 |
|||||||
Earnings per share attributable to Class A and Class B common stockholders: |
|||||||||||||||
Basic |
$ |
2.58 |
$ |
2.40 |
$ |
6.48 |
$ |
7.65 |
|||||||
Diluted |
$ |
2.56 |
$ |
2.38 |
$ |
6.43 |
$ |
7.57 |
|||||||
Weighted-average shares used to compute earnings per share attributable to Class A and Class B common stockholders: |
|||||||||||||||
Basic |
2,853 |
2,872 |
2,854 |
2,890 |
|||||||||||
Diluted |
2,871 |
2,886 |
2,876 |
2,921 |
|||||||||||
Share-based compensation expense included in costs and expenses: |
|||||||||||||||
Cost of revenue |
$ |
90 |
$ |
82 |
$ |
377 |
$ |
284 |
|||||||
Research and development |
931 |
675 |
3,488 |
3,022 |
|||||||||||
Marketing and sales |
147 |
130 |
569 |
511 |
|||||||||||
General and administrative |
105 |
84 |
402 |
335 |
|||||||||||
Total share-based compensation expense |
$ |
1,273 |
$ |
971 |
$ |
4,836 |
$ |
4,152 |
FACEBOOK, INC. | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(In millions) | |||||||||
(Unaudited) | |||||||||
December 31, 2019 |
December 31, 2018 |
||||||||
Assets |
|||||||||
Current assets: |
|||||||||
Cash and cash equivalents |
$ |
19,079 |
$ |
10,019 |
|||||
Marketable securities |
35,776 |
31,095 |
|||||||
Accounts receivable, net of allowances of $206 and $229 as of December 31, 2019 and December 31, 2018, respectively |
9,518 |
7,587 |
|||||||
Prepaid expenses and other current assets |
1,852 |
1,779 |
|||||||
Total current assets |
66,225 |
50,480 |
|||||||
Property and equipment, net |
35,323 |
24,683 |
|||||||
Operating lease right-of-use assets, net |
9,460 |
— |
|||||||
Intangible assets, net |
894 |
1,294 |
|||||||
Goodwill |
18,715 |
18,301 |
|||||||
Other assets |
2,759 |
2,576 |
|||||||
Total assets |
$ |
133,376 |
$ |
97,334 |
|||||
Liabilities and stockholders' equity |
|||||||||
Current liabilities: |
|||||||||
Accounts payable |
$ |
1,363 |
$ |
820 |
|||||
Partners payable |
886 |
541 |
|||||||
Operating lease liabilities, current |
800 |
— |
|||||||
Accrued expenses and other current liabilities |
11,735 |
5,509 |
|||||||
Deferred revenue and deposits |
269 |
147 |
|||||||
Total current liabilities |
15,053 |
7,017 |
|||||||
Operating lease liabilities, non-current |
9,524 |
— |
|||||||
Other liabilities |
7,745 |
6,190 |
|||||||
Total liabilities |
32,322 |
13,207 |
|||||||
Commitments and contingencies |
|||||||||
Stockholders' equity: |
|||||||||
Common stock and additional paid-in capital |
45,851 |
42,906 |
|||||||
Accumulated other comprehensive loss |
(489 |
) |
(760 |
) |
|||||
Retained earnings |
55,692 |
41,981 |
|||||||
Total stockholders' equity |
101,054 |
84,127 |
|||||||
Total liabilities and stockholders' equity |
$ |
133,376 |
$ |
97,334 |
FACEBOOK, INC. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(In millions) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||||||
Cash flows from operating activities |
|||||||||||||||
Net income |
$ |
7,349 |
$ |
6,882 |
$ |
18,485 |
$ |
22,112 |
|||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||||||||||
Depreciation and amortization |
1,468 |
1,225 |
5,741 |
4,315 |
|||||||||||
Share-based compensation |
1,273 |
971 |
4,836 |
4,152 |
|||||||||||
Deferred income taxes |
(395 |
) |
201 |
(37 |
) |
286 |
|||||||||
Other |
(6 |
) |
(19 |
) |
39 |
(64 |
) |
||||||||
Changes in assets and liabilities: |
|||||||||||||||
Accounts receivable |
(1,697 |
) |
(1,564 |
) |
(1,961 |
) |
(1,892 |
) |
|||||||
Prepaid expenses and other current assets |
577 |
198 |
47 |
(690 |
) |
||||||||||
Other assets |
(26 |
) |
(60 |
) |
41 |
(159 |
) |
||||||||
Accounts payable |
112 |
133 |
113 |
221 |
|||||||||||
Partners payable |
289 |
41 |
348 |
157 |
|||||||||||
Accrued expenses and other current liabilities |
861 |
378 |
7,300 |
1,417 |
|||||||||||
Deferred revenue and deposits |
41 |
33 |
123 |
53 |
|||||||||||
Other liabilities |
(763 |
) |
(735 |
) |
1,239 |
(634 |
) |
||||||||
Net cash provided by operating activities |
9,083 |
7,684 |
36,314 |
29,274 |
|||||||||||
Cash flows from investing activities |
|||||||||||||||
Purchases of property and equipment, net |
(4,100 |
) |
(4,366 |
) |
(15,102 |
) |
(13,915 |
) |
|||||||
Purchases of marketable securities |
(4,758 |
) |
(1,997 |
) |
(23,910 |
) |
(14,656 |
) |
|||||||
Sales of marketable securities |
2,163 |
1,254 |
9,565 |
12,358 |
|||||||||||
Maturities of marketable securities |
3,104 |
1,381 |
10,152 |
4,772 |
|||||||||||
Acquisitions of businesses, net of cash acquired, and purchases of intangible assets |
(445 |
) |
— |
(508 |
) |
(137 |
) |
||||||||
Other investing activities, net |
— |
(21 |
) |
(61 |
) |
(25 |
) |
||||||||
Net cash used in investing activities |
(4,036 |
) |
(3,749 |
) |
(19,864 |
) |
(11,603 |
) |
|||||||
Cash flows from financing activities |
|||||||||||||||
Taxes paid related to net share settlement of equity awards |
(627 |
) |
(545 |
) |
(2,337 |
) |
(3,208 |
) |
|||||||
Repurchases of Class A common stock |
(1,296 |
) |
(3,500 |
) |
(4,202 |
) |
(12,879 |
) |
|||||||
Principal payments on finance leases |
(141 |
) |
— |
(552 |
) |
— |
|||||||||
Net change in overdraft in cash pooling entities |
37 |
500 |
(223 |
) |
500 |
||||||||||
Other financing activities, net |
2 |
4 |
15 |
15 |
|||||||||||
Net cash used in financing activities |
(2,025 |
) |
(3,541 |
) |
(7,299 |
) |
(15,572 |
) |
|||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
177 |
(14 |
) |
4 |
(179 |
) |
|||||||||
Net increase in cash, cash equivalents, and restricted cash |
3,199 |
380 |
9,155 |
1,920 |
|||||||||||
Cash, cash equivalents, and restricted cash at beginning of the period |
16,080 |
9,744 |
10,124 |
8,204 |
|||||||||||
Cash, cash equivalents, and restricted cash at end of the period |
$ |
19,279 |
$ |
10,124 |
$ |
19,279 |
$ |
10,124 |
|||||||
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets |
|||||||||||||||
Cash and cash equivalents |
$ |
19,079 |
$ |
10,019 |
$ |
19,079 |
$ |
10,019 |
|||||||
Restricted cash, included in prepaid expenses and other current assets |
8 |
10 |
8 |
10 |
|||||||||||
Restricted cash, included in other assets |
192 |
95 |
192 |
95 |
|||||||||||
Total cash, cash equivalents, and restricted cash |
$ |
19,279 |
$ |
10,124 |
$ |
19,279 |
$ |
10,124 |
FACEBOOK, INC. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(In millions) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||||||
Supplemental cash flow data |
|||||||||||||||
Cash paid for income taxes, net |
$ |
2,654 |
$ |
1,034 |
$ |
5,182 |
$ |
3,762 |
|||||||
Non-cash investing activities: |
|||||||||||||||
Net change in prepaids and liabilities related to property and equipment |
$ |
(94 |
) |
$ |
306 |
$ |
(153 |
) |
$ |
918 |
|||||
Property and equipment in accounts payable and accrued liabilities |
$ |
1,887 |
$ |
1,955 |
$ |
1,887 |
$ |
1,955 |
Reconciliation of GAAP to Non-GAAP Results | |||||||||||||||
(In millions, except percentages) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||||||||
2019 |
2018 |
2019 |
2018 |
||||||||||||
GAAP revenue |
$ |
21,082 |
$ |
16,914 |
$ |
70,697 |
$ |
55,838 |
|||||||
Foreign exchange effect on 2019 revenue using 2018 rates |
295 |
1,669 |
|||||||||||||
Revenue excluding foreign exchange effect |
$ |
21,377 |
$ |
72,366 |
|||||||||||
GAAP revenue year-over-year change % |
25 |
% |
27 |
% |
|||||||||||
Revenue excluding foreign exchange effect year-over-year change % |
26 |
% |
30 |
% |
|||||||||||
GAAP advertising revenue |
$ |
20,736 |
$ |
16,640 |
$ |
69,655 |
$ |
55,013 |
|||||||
Foreign exchange effect on 2019 advertising revenue using 2018 rates |
294 |
1,664 |
|||||||||||||
Advertising revenue excluding foreign exchange effect |
$ |
21,030 |
$ |
71,319 |
|||||||||||
GAAP advertising revenue year-over-year change % |
25 |
% |
27 |
% |
|||||||||||
Advertising revenue excluding foreign exchange effect year-over-year change % |
26 |
% |
30 |
% |
|||||||||||
Net cash provided by operating activities |
$ |
9,083 |
$ |
7,684 |
$ |
36,314 |
$ |
29,274 |
|||||||
Purchases of property and equipment, net |
(4,100 |
) |
(4,366 |
) |
(15,102 |
) |
(13,915 |
) |
|||||||
Principal payments on finance leases |
(141 |
) |
— |
(552 |
) |
— |
|||||||||
Free cash flow |
$ |
4,842 |
$ |
3,318 |
$ |
20,660 |
$ |
15,359 |