Meta Provides Additional Details on New Segment Reporting

Rhea-AI Summary

On January 24, 2022, Meta Platforms announced a shift in its financial reporting structure. Starting with Q4 2021 results on February 2, 2022, the company will report revenue and income from two segments: Family of Apps, covering platforms like Facebook and Instagram, and Reality Labs, focusing on augmented and virtual reality. Historical segment data will also be provided for 2021 and 2020. Financial results and a conference call will occur on February 2. Further details will be available on the company's investor website.

Positive

• New financial reporting structure may enhance transparency for investors.
• Segmented reporting will provide clearer insights into revenue sources and operational performance.

Negative

• Potential uncertainty regarding how the new reporting format may affect investor perceptions and stock valuation.

MENLO PARK, Calif., Jan. 24, 2022 /PRNewswire/ -- Following Meta Platforms, Inc. (NASDAQ: FB) October 2021 announcement that we would implement a new financial reporting structure, we are sharing additional information about the reporting format of our segmented financials.

Beginning with the fourth quarter 2021 earnings results on February 2, 2022, Meta will report revenue and income (loss) from operations for the following two segments:

• Family of Apps (FoA) includes Facebook, Instagram, Messenger, WhatsApp and other services.
• We will continue to report total advertising revenue and advertising revenue by user geography using our legacy methodology.
• We will also report other revenue, which consists of net fees we receive from developers using our payments infrastructure and revenue from various other sources, within the Family of Apps segment.
• Reality Labs (RL) includes augmented and virtual reality related consumer hardware, software and content.

In addition to reporting segment financials for the fourth quarter of 2021, we will provide historical segment information for all quarters of 2021, the fourth quarter of 2020, and full years 2019, 2020 and 2021.

A visual presentation of results is reflected below:

	Period
Revenue:
Advertising
Other revenue
Family of Apps
Reality Labs
Total revenue
Income (loss) from operations:
Family of Apps
Reality Labs
Total income from operations

Meta's fourth quarter and full year 2021 financial results will be released after market close on Wednesday, February 2, 2022. Meta will host a conference call to discuss its results at 2 p.m. PT / 5 p.m. ET the same day. The live webcast of the call can be accessed at the Meta Investor Relations website at investor.fb.com, along with the company's earnings press release, financial tables, and slide presentation.

Following the call, a replay will be available at the same website. A telephonic replay will be available for one week following the conference call at 402.977.9140 or 800.633.8284, Conference ID: 22013689.

Transcripts of conference calls with publishing equity research analysts held on February 2, 2022 will also be posted to the investor.fb.com website.

Disclosure Information
Meta uses the investor.fb.com and about.fb.com/news/ websites as well as Mark Zuckerberg's Facebook Page (facebook.com/zuck) and Instagram account (instagram.com/zuck) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About Meta
Meta builds technologies that help people connect, find communities, and grow businesses. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram and WhatsApp further empowered billions around the world. Now, Meta is moving beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology.

Contacts:

Investors:
Deborah Crawford
investor@fb.com / investor.fb.com

Press:
Ryan Moore
press@fb.com / about.fb.com/news/

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SOURCE Meta

FAQ

What changes has Meta announced regarding financial reporting?

Meta will implement segmented financial reporting starting with Q4 2021 earnings on February 2, 2022.

What are the segments Meta will report in its financials?

Meta will report under two segments: Family of Apps and Reality Labs.

When will Meta's fourth quarter 2021 financial results be released?

The results will be released after market close on February 2, 2022.

Where can I find more information about Meta's financial results?

Additional details will be posted on Meta's investor relations website.

How will the new reporting format affect Meta's revenue disclosures?

Meta will continue reporting total advertising revenue and will include other revenue streams under the Family of Apps segment.