Meta Earnings Presentation

Q1 2025

investor.atmeta.com
Advertising Revenue by User Geography
In Millions

$46,783

$5,635
$41,392
$39,885
$38,706 $38,329
$5,382
$4,447 $35,635 $5,088 $9,012
$33,643 $4,880
$31,498 $4,519
$4,137 $8,224
$28,101 $7,316 $8,050
$3,664 $7,721
$3,229 $7,338 $11,154
$6,829
$6,435
$9,159 $9,358 $9,527
$5,893 $9,135
$7,721 $8,327
$7,268
$6,269
Rest of World
$20,982 Asia-Pacific
$17,784 $16,593 $17,389 $18,259
$14,131 $14,956 $15,451
$12,710
Europe

US & Canada
Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

Our revenue by user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs from our revenue disaggregated by
geography disclosure in our condensed consolidated financial statements where revenue is geographically apportioned based on the addresses of our customers.

2
Revenue by User Geography
In Millions

$48,385

$5,854
$42,314
$40,111 $40,589
$39,071
$5,590
$4,573 $36,455 $5,268 $9,245
$34,146 $5,036
$31,999 $4,667
$4,251 $7,512 $8,439
$8,220
$28,645 $3,739 $7,888
$3,292 $7,481 $11,503
$6,928
$6,515
$5,960 $9,441 $9,492 $9,680
$9,300
$7,777 $8,483
$7,323
$6,345 Rest of World

$21,783 Asia-Pacific
$18,585 $16,847 $17,609 $18,605
$14,422 $15,190 $15,824
$13,048 Europe

US & Canada
Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

Our revenue by user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs from our revenue disaggregated by
geography disclosure in our condensed consolidated financial statements where revenue is geographically apportioned based on the addresses of our customers.

3
Segment Results
In Millions, Except Percentages

Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25

Advertising $ 28,101 $ 31,498 $ 33,643 $ 38,706 $ 35,635 $ 38,329 $ 39,885 $ 46,783 $ 41,392

Other 205 225 293 334 380 389 434 519 510

Family of Apps 28,306 31,723 33,936 39,040 36,015 38,718 40,319 47,302 41,902
Revenue

Reality Labs Revenue 339 276 210 1,071 440 353 270 1,083 412

Total Revenue $ 28,645 $ 31,999 $ 34,146 $ 40,111 $ 36,455 $ 39,071 $ 40,589 $ 48,385 $ 42,314

Family of Apps $ 11,219 $ 13,131 $ 17,490 $ 21,030 $ 17,664 $ 19,335 $ 21,778 $ 28,332 $ 21,765
Operating Income
Reality Labs (3,992) (3,739) (3,742) (4,646) (3,846) (4,488) (4,428) (4,967) (4,210)
Operating (Loss)
Total Income from $ 7,227 $ 9,392 $ 13,748 $ 16,384 $ 13,818 $ 14,847 $ 17,350 $ 23,365 $ 17,555
Operations

Operating Margin 25 % 29 % 40 % 41 % 38 % 38 % 43 % 48 % 41 %

We report our financial results based on two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes our virtual, augmented, and mixed
reality related consumer hardware, software, and content.

4
Expenses as a Percentage of Revenue

10%
13%
11%
6% 6% 9% 9% 5%
5%
10%
7% 7% 2% 7%
8% 8% 7%
7%

33%
29% 26% 27% 28% 29%
27% 27% 25% General &
Administrative
Marketing
& Sales

21% 19% 19% 19% Research &

18% 18% 18% 18% 18% Development
Cost of
Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Revenue

5
Effective Tax Rate
In Millions, Except Percentages

Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25

Income before provision $ 7,307 $ 9,293 $ 14,020 $ 16,808 $ 14,183 $ 15,106 $ 17,822 $ 23,553 $ 18,382
for income taxes

Provision for income taxes $ 1,598 $ 1,505 $ 2,437 $ 2,791 $ 1,814 $ 1,641 $ 2,134 $ 2,715 $ 1,738

Effective Tax Rate 22 % 16 % 17 % 17 % 13 % 11 % 12 % 12 % 9%

6
Net Income
In Millions

$20,838

$16,644
$15,688
$14,017
$13,465
$12,369
$11,583

$7,788

$5,709

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

7
Diluted Earnings Per Share

$8.02

$6.43
$6.03

$5.33
$5.16
$4.71
$4.39

$2.98

$2.20

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

8
Capital Expenditures
In Millions

$39,225

$28,103

$13,692

$6,715

Q1'24 Q1'25 2023 2024

Quarterly Annual

Capital expenditures for periods presented were related to purchases of property and equipment and principal payments on finance leases.

9
 Family Daily Active People (DAP)
In Billions

3.35 3.43
3.24 3.27 3.29
3.14 3.19
3.02 3.07

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

We define a daily active person (DAP) as a registered and logged-in user of Facebook, Instagram, Messenger, and/or WhatsApp (collectively, our "Family" of products) who visited at least one of these Family products through a mobile device
application or using a web or mobile browser on a given day. The numbers for DAP do not include users on our other products unless they would otherwise qualify as DAP based on their other activities on our Family products.

We do not require people to use a common identifier or link their accounts to use multiple products in our Family, and therefore must seek to attribute multiple user accounts within and across products to individual people. Our calculations of
DAP rely upon complex techniques, algorithms, and machine learning models that seek to estimate the underlying number of unique people using one or more of these products, including by matching user accounts within an individual
product and across multiple products when we believe they are attributable to a single person, and counting such group of accounts as one person. As these techniques and models require significant judgment, are developed based on
internal reviews of limited samples of user accounts, and are calibrated against user survey data, there is necessarily some margin of error in our estimates. For additional information, see "Limitations of Key Metrics and Other Data" located in
the Appendix of this presentation. Beginning in the fourth quarter of 2023, our Family metrics no longer include Messenger Kids users.

10
Family Average Revenue per Person (ARPP)

$14.25

$12.33 $12.29 $12.36

$11.89
$10.93 $11.20
$10.42
$9.47

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

Beginning in the first quarter of 2024, we define average revenue per person (ARPP) as our FoA revenue during a given quarter, divided by the average of the number of DAP at the beginning and end of the quarter. We have recast
ARPP in prior periods for comparative purposes.

11
Ad Impressions Delivered YoY Percentage Change

20%
16%
10% 12%
7% 6% 8% 7% 6% 6%
5% 4% 5% 5% 5%

Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

Worldwide US & Canada Europe

28%

17%
15%
9% 10% 9% 8%
5% 3% 1%
Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

Asia-Pacific Rest of World

Our ad impressions growth by user geography is geographically apportioned based on our estimation of the geographic location of our users when an ad impression is delivered.

12
Average Price Per Ad YoY Percentage Change

18% 18% 16% 16%

11% 14% 12% 14%
10% 10% 9% 9% 9%
6% 5%

Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

Worldwide US & Canada Europe

24% 23%
20% 17% 17%
12%
8%
4% 3%

(3)%

Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25

Asia-Pacific Rest of World

Our average price per ad growth by user geography is geographically apportioned based on our estimation of the geographic location of our users when an ad impression is delivered.

13
Appendix
Free Cash Flow Reconciliation
In Millions

Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25

Net cash provided by $ 13,998 $ 17,309 $ 20,402 $ 19,404 $ 19,246 $ 19,370 $ 24,724 $ 27,988 $ 24,026
operating activities

Less: Purchases of 6,823 6,134 6,496 7,592 6,400 8,173 8,258 14,425 12,941
property and equipment

Less: Principal
payments on finance 264 220 267 307 315 299 944 411 751
leases

Free Cash Flow $ 6,911 $ 10,955 $ 13,639 $ 11,505 $ 12,531 $ 10,898 $ 15,522 $ 13,152 $ 10,334

Free cash flow (FCF) is a non-GAAP financial measure that has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by
operating activities. FCF is not intended to represent our residual cash flow available for discretionary expenses. Some of the limitations of FCF are: (i) FCF does not reflect our future contractual commitments, and (ii) other companies
in our industry present similarly titled measures differently than we do, limiting their usefulness as comparative measures.

15
Limitations of Key Metrics and Other Data
Family Metrics

The numbers for our key metrics are calculated using internal company data based on the activity of user accounts. We report our estimates of the numbers of our daily active people (DAP) and
average revenue per person (ARPP) (collectively, our "Family metrics") based on the activity of users who visited at least one of Facebook, Instagram, Messenger, and WhatsApp (collectively, our
"Family" of products) during the applicable period of measurement.

While these numbers are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring usage of our
products across large online and mobile populations around the world. The methodologies used to measure these metrics require significant judgment and are also susceptible to algorithm or other
technical errors. In addition, we are continually seeking to improve our estimates of our user base, and such estimates may change due to improvements or changes in our methodology. We regularly
review our processes for calculating these metrics, and from time to time we discover inaccuracies in our metrics or make adjustments to improve their accuracy, which can result in adjustments to
our historical metrics. Our ability to recalculate our historical metrics may be impacted by data limitations or other factors that require us to apply different methodologies for such adjustments. We
generally do not intend to update previously disclosed Family metrics for any such inaccuracies or adjustments that are within the error margins disclosed below.

In addition, our Family metrics estimates will differ from estimates published by third parties due to differences in methodology or other factors such as data limitations or other challenges in
measuring large online and mobile populations. For example, our methodologies include measurements of our user base that have in some instances exceeded estimates of addressable online and
mobile populations that are based on data published by third parties.

Many people in our community have user accounts on more than one of our products, and some people have multiple user accounts within an individual product. Accordingly, for our Family metrics,
we do not seek to count the total number of user accounts across our products because we believe that would not reflect the actual size of our community. Rather, our Family metrics represent our
estimates of the number of unique people using at least one of Facebook, Instagram, Messenger, and WhatsApp. We do not require people to use a common identifier or link their accounts to use
multiple products in our Family, and therefore must seek to attribute multiple user accounts within and across products to individual people. To calculate these metrics, we rely upon complex
techniques, algorithms and machine learning models that seek to count the individual people behind user accounts, including by matching multiple user accounts within an individual product and
across multiple products when we believe they are attributable to a single person, and counting such group of accounts as one person. These techniques and models require significant judgment, are
subject to data and other limitations discussed below, and inherently are subject to statistical variances and uncertainties. We estimate the potential error in our Family metrics primarily based on user
survey data as described further below, which itself is subject to error as well. While we expect the error margin for our Family metrics to vary from period to period, we estimate that such margin
generally will be approximately 3% of our worldwide DAP. At our scale, it is very difficult to attribute multiple user accounts within and across products to individual people, and it is possible that the
actual numbers of unique people using our products may vary significantly from our estimates, potentially beyond our estimated error margins. As a result, it is also possible that our Family metrics
may indicate changes or trends in user numbers that do not match actual changes or trends.

16
Limitations of Key Metrics and Other Data
To calculate our estimates of DAP, we currently use a series of machine learning models that are developed based on internal reviews of limited samples of user accounts and calibrated against user
survey data. We apply significant judgment in designing these models and calculating these estimates. For example, to match user accounts within individual products and across multiple products,
we use data signals such as similar device information, IP addresses, and user names. We also calibrate our models against data from periodic user surveys of varying sizes and frequency across our
products, which survey questions are based on monthly usage, and which are inherently subject to error. The timing and results of such user surveys have in the past contributed, and may in the
future contribute, to changes in our reported Family metrics from period to period. In addition, our data limitations may affect our understanding of certain details of our business and increase the
risk of error for our Family metrics estimates. Our techniques and models rely on a variety of data signals from different products, and we rely on more limited data signals for some products
compared to others. For example, as a result of limited visibility into encrypted products, we have fewer data signals from WhatsApp user accounts and primarily rely on phone numbers and device
information to match WhatsApp user accounts with accounts on our other products. Any loss of access to data signals we use in our process for calculating Family metrics, whether as a result of our
own product decisions, actions by third-party browser or mobile platforms, regulatory or legislative requirements, or other factors, also may impact the stability or accuracy of our reported Family
metrics, as well as our ability to report these metrics at all. Our estimates of Family metrics also may change as our methodologies evolve, including through the application of new data signals or
technologies, product changes, or other improvements in our user surveys, algorithms, or machine learning that may improve our ability to match accounts within and across our products or
otherwise evaluate the broad population of our users. In addition, such evolution may allow us to identify previously undetected violating accounts (as defined below).

We regularly evaluate our Family metrics to estimate the percentage of our DAP consisting solely of "violating" accounts. We define "violating" accounts as accounts which we believe are intended to
be used for purposes that violate our terms of service, including bots and spam. In the fourth quarter of 2024, we estimated that less than 3% of our worldwide DAP consisted solely of violating
accounts. Such estimation is based on an internal review of a limited sample of accounts, and we apply significant judgment in making this determination. For example, we look for account
information and behaviors associated with Facebook and Instagram accounts that appear to be inauthentic to the reviewers, but we have limited visibility into WhatsApp user activity due to
encryption. In addition, if we believe an individual person has one or more violating accounts, we do not include such person in our violating accounts estimation as long as we believe they have one
account that does not constitute a violating account. From time to time, we disable certain user accounts, make product changes, or take other actions to reduce the number of violating accounts
among our users, which may also reduce our DAP estimates in a particular period. We intend to continue to disclose our estimates of the percentage of our DAP consisting solely of violating accounts
on an annual basis. Violating accounts are very difficult to measure at our scale, and it is possible that the actual number of violating accounts may vary significantly from our estimates.

User Geography

Our estimates for revenue by user location, as well as year-over-year percentage changes in ad impressions delivered and the average price per ad by user location, are also affected by data
limitations and other challenges in measuring user geography. Our data regarding the geographic location of our users is estimated based on a number of factors, such as the user's IP address and
self-disclosed location. These factors may not always accurately reflect the user's actual location. For example, a user may appear to be accessing our products from the location of the proxy server
that the user connects to rather than from the user's actual location. The methodologies used to measure our metrics are also susceptible to algorithm or other technical errors.

17
Meta Earnings Presentation
Q1 2025

investor.atmeta.com