$FB Facebook Q1 Earnings Summary and Analysis

$FB Facebook reported Q1 EPS of $3.30 (+95% YoY), $0.93 better than the analyst estimate of $2.37

$FB Revenue for the quarter came in at $26.17B (+47% YoY) versus the consensus estimate of $23.67B.

$FB daily active users (DAUs) – DAUs were 1.88B on average for March 2021, (+8% YoY).

$FB monthly active users (MAUs) – MAUs were 2.85B as of March 2021 (+10% YoY).

$FB Ad rates and pricing rose 30% YoY driving strong revenue gains, which led 4 analysts to raise price targets to $380 – $400.

$FB is currently at $326

$FB is investing in the consumer shopping experience – with ~9% of total MAUs now interacting with merchandise, which can drive universal adoption of Shops and subsequently increase the shopping use case.

$FB disclosed that there 1M active shopping stores, 250M visitors to
these stores.

$FB announced another $4B in share buybacks as well, likely raising EPS. $FB has $62B in cash with no debt.

A 12-month price target of $380 seems reasonable based on 24x 2022 GAAP EPS estimate plus cash, and implies ~16.0x ’22E Adjusted
EBITDA.

New intiatives

“We have a long way to go to build out a full featured commerce platform across our services, and this is a multiyear journey. But I am very committed to getting there” – Mark Zuckerberg

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“We’re looking forward to offering businesses a native way to manage their customer relationships on our platforms” – Mark Zuckerberg

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“We’re rebuilding meaningful elements of our ad tech so that our system continues to perform when we have access to less data in the future (Apple IDFA)” — Sheryl Sandberg

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