Meta Platforms / Facebook Financial Performance from Time to Time- Meta Platform is one of the biggest technology companies in the United States of America and the World. Basically, Meta Platforms was the parent company of Facebook, Instagram, WhatsApp, and the other subsidiary companies. It was formerly known as Facebook Inc and around October 2021, Mark Zuckerberg (the CEO and Co-Founder of Facebook Inc) announces its new name to Meta Platforms. By the way, Mark Zuckerberg has a plan to build a metaverse, an online world where people can work and communicate in the virtual environment using VR headsets in the future.
Historically, Meta Platforms / Facebook inc was founded on January 4, 2004, by Mark Zuckerberg with Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, Chris Hughes in the Harvard dormitory room. Mark Zuckerberg then become the pioneer and the CEO of Facebook that led the company to the King of social media until now. He ends his studies at Harvard University to Build Facebook and his sacrifice and hardworking have come true with Facebook from time to time becoming the global social media and with 2 billion monthly active users in 2020 Based on the Statista Data.
Because of his massive number of users for Facebook and the increasing income of Facebook. Facebook finally bought some other social media. They bought Instagram for $1 billion in 2012 and In February 2014, Facebook purchased the messaging service WhatsApp for $19 billion. That’s the big deal acquisition to Facebook/ Meta Platform Inc. It can generate tons of money for Facebook. Nowadays, Instagram has monthly users more than 1 billion users. Some of the instagram’s Users can be tracked in India, the United States of America, Brazil, and Indonesia as the Top Country users of Instagram. Whats app also has a big impact on Facebook. This is one of the most used mobile messenger apps with around 2 billion active users worldwide. Recently, in 2023, Meta Platform launched Thread social Media and they want to explore the potential niche market that they can grab.
The Assets, Liabilities, and Equities of Facebook / Meta Platforms From Time to Time
| Years | Assets | Liabilities | Equities |
|---|---|---|---|
| Million US Dollars | Million US Dollars | Million US Dollars | |
| 2022 | 185,729 | 60,014 | 125,715 |
| 2021 | 165,987 | 41,108 | 124,879 |
| 2020 | 159,316 | 31,026 | 128,290 |
| 2019 | 133,376 | 32,322 | 101,054 |
| 2018 | 97,334 | 13,207 | 84,127 |
| 2017 | 84,524 | 10,177 | 74,347 |
| 2016 | 64,961 | 5,767 | 59,194 |
| 2015 | 49,407 | 5,189 | 44,218 |
| 2014 | 40,184 | 4,088 | 36,096 |
| 2013 | 17,895 | 2,425 | 15,470 |
| 2012 | 15,103 | 3,348 | 11,755 |
| 2011 | 6,331 | 1,432 | 4,899 |
| Source : Facebook / Meta Platforms Annual Report, 2012-2021 | |||
The growth of active users of Facebook, Instagram, and WhatsApp, affects the company’s financial structure. Facebook has become one of the biggest technology companies in the world. The assets of Facebook in 2011 is just 6.3 billion US Dollars with liabilities of 1.4 billion US Dollars. From time to time, it increases gradually. Until 2022, the Assets of Facebook inc reached 185 billion US Dollars and liabilities reached 60 billion US Dollars. The Net Assets / Equities also grow from 4.8 billion US Dollars in 2011 to 125 billion US Dollars in 2022.
The Revenue and Net Income of Facebook / Meta Platforms From Time to Time
| Years | Revenue | Net Income |
|---|---|---|
| Million US Dollars | Million US Dollars | |
| 2022 | 116,609 | 23,200 |
| 2021 | 117,929 | 39,370 |
| 2020 | 85,965 | 29,146 |
| 2019 | 70,697 | 18,485 |
| 2018 | 55,838 | 22,112 |
| 2017 | 40,653 | 15,934 |
| 2016 | 27,638 | 10,217 |
| 2015 | 17,928 | 3,688 |
| 2014 | 12,466 | 2,940 |
| 2013 | 7,872 | 1,500 |
| 2012 | 5,089 | 53 |
| 2011 | 3,711 | 1,000 |
| Source : Facebook / Meta Platforms Annual Report, 2012-2021 | ||
Based on the Financial Performance of Meta / Facebook, its company showed a positive result with consistent net income from time to time. in 2011, the revenue of the company is just 3.7 billion US Dollars, with net income reaching 1 billion US Dollars at that time. By the time, from time to time, Facebook is consistent in getting net income in the 10 years of its business operations. Until 2022, the revenue of Meta / Facebook reached 116 billion US Dollars and Net Income reached 23 billion US Dollars.
Besides the success of Facebook with consistent generating net income from time to time, this company was shadowed by scandals of the Cambridge Analytica fiasco in 2014. They collected the data of its users for political purposes. But with these scandals, Facebook shares plummet at that time because of the loss of its credibility. But Facebook apologizes for this incident.
Based on some indicators of financial ratios, Facebook / Meta platform showed positive performance, with some ratios of DER and DAR below one (<1). The debt to equity ratio showed an average value of around 0.2. This value means that the composition of liabilities is about 20% of the Equities, or every 1 dollar equities contains 0.2 dollars liabilities. Meanwhile, in the Debt to Asset ratio (DAR), the average value of Meta platform/Facebook from 2011 to 2022 is about 0.17. This means that the value of liabilities is about 17% of Assets, or it means every one dollar of asset contains 0.17 US dollars of liabilities.
Based on the Net profit Margin from 2011 to 2022, the Average Value of Facebook/ meta platform’s NPM is about 0.267. This value means that the net income is about 26% of its revenue, or every one US dollar of revenue can become a net income of about 0.2 US dollars.
Although of the scandals that happened in the past, Facebook has shown incredible performance with big impact n human lives. They changed to communicate with people. Facebook can connect with people. All people can communicate with others instantly and easily. They can change the culture to communicate and connect with people. They change the culture of People to socialize with others.
Mark Zuckerberg as the CEO, Co-Founder, and Shareholder has had an impact on the success of Facebook. He become one of the richest people in the World with 67.3 billion US Dollars of real-time net worth as of 3/12/22. Besides Elon Musk, Jeff Bezos, Bernard Arnault, Bill Gates, Larry Page, and Warren Buffett, he is one of the richest people in the world.
Bibliography of Meta Platforms / Facebook Financial Performance from Time to Time
Meta Platforms. 2023. Meta Investor Relations. Accessed via https://investor.fb.com/financials/default.aspx on March 13, 2023
Statista. 2021. Number of monthly active Facebook users worldwide as of 4th quarter 2021. Accessed via https://www.statista.com/statistics/264810/number-of-monthly-active-facebook-users-worldwide/#:~:text=How%20many%20users%20does%20Facebook,years%20to%20reach%20this%20milestone on March 3th, 2021.
Wikipedia. 2021. Mark Zuckerberg. Accessed via https://en.wikipedia.org/wiki/Mark_Zuckerberg on March 13, 2022.
Wikipedia. 2021. Meta Platforms. accessed via https://en.wikipedia.org/wiki/Meta_Platforms on March 13, 2021.
Forbes. 2021. Accessed via https://www.forbes.com/profile/mark-zuckerberg/?sh=745489f33e06 on March 12, 2021