1、Meta Platforms Annual Report 2023Form 10-K(NASDAQ:META)Published:February 2nd,2023PDF generated by UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549_FORM 10-K_(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended Dece

2、mber 31,2022or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from to Commission File Number:001-35551_Meta Platforms,Inc.(Exact name of registrant as specified in its charter)_Delaware20-1665019(State or other jurisdiction of incorpo

3、ration or organization)(I.R.S.Employer Identification Number)1601 Willow Road,Menlo Park,California 94025(Address of principal executive offices and Zip Code)(650)543-4800(Registrants telephone number,including area code)_Securities registered pursuant to Section 12(b)of the Act:Title of each classT

4、rading symbol(s)Name of each exchange on which registeredClass A Common Stock,$0.000006 par valueMETAThe Nasdaq Stock Market LLCSecurities registered pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securit

5、ies Act.Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes No Indicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934(Exc

6、hange Act)during thepreceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data Fi

7、le required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 ofthis chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated

8、filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of large accelerated filer,accelerated filer,smaller reporting company,and emerging growth company in Rule 12b-2 of the Exchange Act.Large accelerated filerAccelerated filerNon-accelerated fil

9、erSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financialaccounting standards provided pursuant to Section 13(a)of the Exchange Act.Ind

10、icate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over financial reportingunder Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or

11、issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction ofan error to previously issued financial statements.Indicate by check mark whether any of

12、those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrantsexecutive officers during the relevant recovery period pursuant to 240.10D-1(b).Indicate by check mark whether the registrant is a shell company(as defined in

13、Rule 12b-2 of the Exchange Act).Yes No The aggregate market value of the voting and non-voting stock held by non-affiliates of the registrant as of June 30,2022,the last business day of the registrants most recentlycompleted second fiscal quarter,was$378 billion based upon the closing price reported

14、 for such date on the Nasdaq Global Select Market.On January 27,2023,the registrant had2,225,763,078 shares of Class A common stock and 366,876,470 shares of Class B common stock outstanding.DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrants Proxy Statement for the 2023 Annual Meeting of

15、 Stockholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to theextent stated herein.Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrants fiscal year ended December 31,2022.Meta Platforms,Inc.Form 10

16、-KTABLE OF CONTENTSPageNote About Forward-Looking Statements3Limitations of Key Metrics and Other Data4PART IItem 1.Business7Item 1A.Risk Factors14Item 1B.Unresolved Staff Comments48Item 2.Properties48Item 3.Legal Proceedings48Item 4.Mine Safety Disclosures51PART IIItem 5.Market for Registrants Comm

17、on Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities52Item 6.Reserved53Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations54Item 7A.Quantitative and Qualitative Disclosures About Market Risk78Item 8.Financial Statements and Supplemen

18、tary Data80Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure120Item 9A.Controls and Procedures120Item 9B.Other Information120Item 9C.Disclosure Regarding Foreign Jurisdictions that Prevent Inspections120PART IIIItem 10.Directors,Executive Officers and Corpor

19、ate Governance121Item 11.Executive Compensation121Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters121Item 13.Certain Relationships and Related Transactions,and Director Independence121Item 14.Principal Accountant Fees and Services121PART IVItem 1

20、5.Exhibit and Financial Statement Schedules122Item 16.Form 10-K Summary124Signatures1252NOTE ABOUT FORWARD-LOOKING STATEMENTSThis Annual Report on Form 10-K contains forward-looking statements.All statements contained in this Annual Report on Form 10-K other thanstatements of historical fact,includi

21、ng statements regarding our future results of operations and financial position,our business strategy and plans,andour objectives for future operations,are forward-looking statements.The words believe,may,will,estimate,continue,anticipate,intend,expect,and similar expressions are intended to identif

22、y forward-looking statements.We have based these forward-looking statements largely on ourcurrent expectations and projections about future events and trends that we believe may affect our financial condition,results of operations,businessstrategy,short-term and long-term business operations and obj

23、ectives,and financial needs.These forward-looking statements are subject to a number ofrisks,uncertainties and assumptions,including those described in Part I,Item 1A,Risk Factors in this Annual Report on Form 10-K.Moreover,weoperate in a very competitive and rapidly changing environment.New risks e

24、merge from time to time.It is not possible for our management to predict allrisks,nor can we assess the impact of all factors on our business or the extent to which any factor,or combination of factors,may cause actual results todiffer materially from those contained in any forward-looking statement

25、s we may make.In light of these risks,uncertainties and assumptions,the futureevents and trends discussed in this Annual Report on Form 10-K may not occur and actual results could differ materially and adversely from thoseanticipated or implied in the forward-looking statements.We undertake no oblig

26、ation to revise or publicly release the results of any revision to these forward-looking statements,except as required by law.Given these risks and uncertainties,readers are cautioned not to place undue reliance on such forward-looking statements.Unless expressly indicated or the context requires ot

27、herwise,the terms Meta,company,we,us,and our in this document refer to MetaPlatforms,Inc.,a Delaware corporation,and,where appropriate,its subsidiaries.The term Family refers to our Facebook,Instagram,Messenger,andWhatsApp products.For references to accessing Metas products on the web or via a websi

28、te,such terms refer to accessing such products onpersonal computers.For references to accessing Metas products on mobile,such term refers to accessing such products via a mobile application or viaa mobile-optimized version of our websites such as ,whether on a mobile phone or tablet.3Table of Conten

29、tsLIMITATIONS OF KEY METRICS AND OTHER DATAThe numbers for our key metrics are calculated using internal company data based on the activity of user accounts.We report our estimates of thenumbers of our daily active people(DAP),monthly active people(MAP),and average revenue per person(ARPP)(collectiv

30、ely,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)duringthe applicable period of measurement.We have historically reported the numbers of our daily active users(DAUs),monthly active users(MA

31、Us),andaverage revenue per user(ARPU)(collectively,our Facebook metrics)based on user activity only on Facebook and Messenger and not on our otherproducts.We believe our Family metrics better reflect the size of our community and the fact that many people are using more than one of our products.As a

32、 result,over time we intend to report our Family metrics as key metrics in place of DAUs,MAUs,and ARPU in our periodic reports filed with theSecurities and Exchange Commission.While these numbers are based on what we believe to be reasonable estimates of our user base for the applicable period of me

33、asurement,thereare inherent challenges in measuring usage of our products across large online and mobile populations around the world.The methodologies used tomeasure these metrics require significant judgment and are also susceptible to algorithm or other technical errors.In addition,we are continu

34、ally seekingto improve our estimates of our user base,and such estimates may change due to improvements or changes in our methodology.We regularly review ourprocesses for calculating these metrics,and from time to time we discover inaccuracies in our metrics or make adjustments to improve their accu

35、racy,which can result in adjustments to our historical metrics.Our ability to recalculate our historical metrics may be impacted by data limitations or otherfactors that require us to apply different methodologies for such adjustments.We generally do not intend to update previously disclosed Family

36、metrics forany such inaccuracies or adjustments that are within the error margins disclosed below.In addition,our Family metrics and Facebook metrics estimates will differ from estimates published by third parties due to differences inmethodology.Family MetricsMany people in our community have user

37、accounts on more than one of our products,and some people have multiple user accounts within anindividual product.Accordingly,for our Family metrics,we do not seek to count the total number of user accounts across our products because webelieve that would not reflect the actual size of our community

38、.Rather,our Family metrics represent our estimates of the number of unique people usingat least one of Facebook,Instagram,Messenger,and WhatsApp.We do not require people to use a common identifier or link their accounts to usemultiple products in our Family,and therefore must seek to attribute multi

39、ple user accounts within and across products to individual people.To calculatethese 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 a

40、nd across multiple products when we believe they are attributable to a singleperson,and counting such group of accounts as one person.These techniques and models require significant judgment,are subject to data and otherlimitations discussed below,and inherently are subject to statistical variances

41、and uncertainties.We estimate the potential error in our Family metricsprimarily based on user survey data,which itself is subject to error as well.While we expect the error margin for our Family metrics to vary from period toperiod,we estimate that such margin generally will be approximately 3%of o

42、ur worldwide MAP.At our scale,it is very difficult to attribute multiple useraccounts within and across products to individual people,and it is possible that the actual numbers of unique people using our products may varysignificantly from our estimates,potentially beyond our estimated error margins

43、.As a result,it is also possible that our Family metrics may indicatechanges or trends in user numbers that do not match actual changes or trends.To calculate our estimates of Family DAP and MAP,we currently use a series of machine learning models that are developed based on internalreviews of limit

44、ed samples of user accounts and calibrated against user survey data.We apply significant judgment in designing these models andcalculating these estimates.For example,to match user accounts within individual products and across multiple products,we use data signals such assimilar device information,

45、IP addresses,and user names.We also calibrate our models against data from periodic user surveys of varying sizes andfrequency across our products,which are inherently subject to error.The timing and results of such user surveys have in the past contributed,and may inthe future contribute,to changes

46、 in our reported Family metrics from period to period.In addition,our data limitations may affect our understandingof 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 datasignals from different products,and

47、 we rely on more limited data signals for some products compared to others.For example,as a result of limitedvisibility into encrypted products,we have fewerTable of Contentsdata signals from WhatsApp user accounts and primarily rely on phone numbers and device information to match WhatsApp user acc

48、ounts withaccounts on our other products.Similarly,although Messenger Kids users are included in our Family metrics,we do not seek to match their accounts withaccounts on our other applications for purposes of calculating DAP and MAP.Any loss of access to data signals we use in our process for calcu

49、latingFamily metrics,whether as a result of our own product decisions,actions by third-party browser or mobile platforms,regulatory or legislativerequirements,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 a

50、ll.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 andacros

51、s our products or otherwise evaluate the broad population of our users.In addition,such evolution may allow us to identify previously undetectedviolating accounts(as defined below).We regularly evaluate our Family metrics to estimate the percentage of our MAP consisting solely of violating accounts.

52、We define violatingaccounts as accounts which we believe are intended to be used for purposes that violate our terms of service,including bots and spam.In the fourthquarter of 2022,we estimated that approximately 3%of our worldwide MAP consisted solely of violating accounts.Such estimation is based

53、on an internalreview of a limited sample of accounts,and we apply significant judgment in making this determination.For example,we look for account information andbehaviors associated with Facebook and Instagram accounts that appear to be inauthentic to the reviewers,but we have limited visibility i

54、nto WhatsAppuser 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 ourviolating accounts estimation as long as we believe they have one account that does not constitute a violating account.From time to time,w

55、e disablecertain user accounts,make product changes,or take other actions to reduce the number of violating accounts among our users,which may also reduceour DAP and MAP estimates in a particular period.We intend to disclose our estimates of the percentage of our MAP consisting solely of violatingac

56、counts on an annual basis.Violating accounts are very difficult to measure at our scale,and it is possible that the actual number of violating accountsmay vary significantly from our estimates.The numbers of Family DAP and MAP discussed in this Annual Report on Form 10-K,as well as ARPP,do not inclu

57、de users on our other products,unless they would otherwise qualify as DAP or MAP,respectively,based on their other activities on our Family products.Facebook MetricsWe regularly evaluate our Facebook metrics to estimate the number of duplicate and false accounts among our MAUs.A duplicate account is

58、one that a user maintains in addition to his or her principal account.We divide false accounts into two categories:(1)user-misclassified accounts,where users have created personal profiles for a business,organization,or non-human entity such as a pet(such entities are permitted on Facebookusing a Pa

59、ge rather than a personal profile under our terms of service);and(2)violating accounts,which represent user profiles that we believe areintended to be used for purposes that violate our terms of service,such as bots and spam.The estimates of duplicate and false accounts are based on aninternal revie

60、w of a limited sample of accounts,and we apply significant judgment in making this determination.For example,to identify duplicateaccounts we use data signals such as identical IP addresses and similar user names,and to identify false accounts we look for names that appear to befake or other behavio

61、r that appears inauthentic to the reviewers.Any loss of access to data signals we use in this process,whether as a result of our ownproduct decisions,actions by third-party browser or mobile platforms,regulatory or legislative requirements,or other factors,also may impact the stabilityor accuracy of

62、 our estimates of duplicate and false accounts.Our estimates also may change as our methodologies evolve,including through theapplication of new data signals or technologies or product changes that may allow us to identify previously undetected duplicate or false accounts andmay improve our ability

63、to evaluate a broader population of our users.Duplicate and false accounts are very difficult to measure at our scale,and it ispossible that the actual number of duplicate and false accounts may vary significantly from our estimates.In the fourth quarter of 2022,we estimated that duplicate accounts

64、may have represented approximately 11%of our worldwide MAUs.We believethe percentage of duplicate accounts is meaningfully higher in developing markets such as the Philippines and Vietnam,as compared to more developedmarkets.In the fourth quarter of 2022,we estimated that false accounts may have rep

65、resented approximately 4-5%of our worldwide MAUs.Ourestimation of false accounts can vary as a result of episodic spikes in the creation of such accounts,which we have seen originate more frequently inspecific countries such as Indonesia,Nigeria,and Vietnam.From time to time,we disable certain user

66、accounts,make product changes,or take otheractions to reduce the number of duplicate or false accounts among our users,which may also reduce our DAU andTable of ContentsMAU estimates in a particular period.We intend to disclose our estimates of the number of duplicate and false accounts among our MA

67、Us on an annualbasis.The numbers of DAUs and MAUs discussed in this Annual Report on Form 10-K,as well as ARPU,do not include users on Instagram,WhatsApp,or our other products,unless they would otherwise qualify as DAUs or MAUs,respectively,based on their other activities on Facebook.User GeographyO

68、ur data regarding the geographic location of our users is estimated based on a number of factors,such as the users IP address and self-disclosed location.These factors may not always accurately reflect the users actual location.For example,a user may appear to be accessing Facebookfrom the location

69、of the proxy server that the user connects to rather than from the users actual location.The methodologies used to measure our metricsare also susceptible to algorithm or other technical errors,and our estimates for revenue by user location and revenue by user device are also affected bythese factor

70、s.6Table of ContentsPART IItem 1.BusinessOverviewOur mission is to give people the power to build community and bring the world closer together.All of our products,including our apps,share the vision of helping to bring the metaverse to life.We build technology that helps people connect andshare,fin

71、d communities,and grow businesses.Our useful and engaging products enable people to connect and share with friends and family throughmobile devices,personal computers,virtual reality headsets,and wearables.We also help people discover and learn about what is going on in the worldaround them,enable p

72、eople to share their experiences,ideas,photos and videos,and other activities with audiences ranging from their closest familymembers and friends to the public at large,and stay connected everywhere by accessing our products.Meta is moving our offerings beyond 2D screenstoward immersive experiences

73、like augmented and virtual reality to help build the metaverse,which we believe is the next evolution in social technology.Our vision for the metaverse does not center on any single product,but rather an entire ecosystem of experiences,devices,and new technologies.Whilethe metaverse is in the very e

74、arly stages of its development,we believe it will become the next computing platform and the future of social interaction.We report financial results for two segments:Family of Apps(FoA)and Reality Labs(RL).Currently,we generate substantially all of our revenuefrom selling advertising placements on

75、our family of apps to marketers,which is reflected in FoA.Ads on our platforms enable marketers to reach peopleacross a range of marketing objectives,such as generating leads or driving awareness.Marketers purchase ads that can appear in multiple placesincluding on Facebook,Instagram,Messenger,and t

76、hird-party applications and websites.RL reflects our efforts to develop the metaverse and generatesrevenue from sales of consumer hardware products,software and content.We invest in our business based on our company priorities,and the majority of our investments are directed toward developing our fa

77、mily of apps.In 2022,82%of our total costs and expenses were recognized in FoA and 18%were recognized in RL.Our FoA investments were$71.79 billion in 2022and include expenses relating to headcount,data centers and technical infrastructure as part of our efforts to develop our apps and our advertisin

78、gservices.We are also making significant investments in our metaverse efforts,including developing virtual and augmented reality devices,software forsocial platforms,neural interfaces,and other foundational technologies for the metaverse.Our total RL investments were$15.88 billion in 2022 andinclude

79、 expenses relating to headcount and technology development across these efforts.As these are fundamentally new technologies that we expectwill evolve as the metaverse ecosystem develops,many products for the metaverse may only be fully realized in the next decade.Although it is inherentlydifficult t

80、o predict when and how the metaverse ecosystem will develop,we expect our RL segment to continue to operate at a loss for the foreseeablefuture,and our ability to support our metaverse efforts is dependent on generating sufficient profits from other areas of our business.We expect this willbe a comp

81、lex,evolving,and long-term initiative.We are investing now because we believe this is the next chapter of the internet and will unlockmonetization opportunities for businesses,developers,and creators,including around advertising,hardware,and digital goods.Family of Apps ProductsFacebook.Facebook hel

82、ps give people the power to build community and bring the world closer together.Its a place for people to sharelifes moments and discuss whats happening,nurture and build relationships,discover and connect to interests,and create economicopportunity.They can do this through Feed,Reels,Stories,Groups

83、,and more.Instagram.Instagram brings people closer to the people and things they love.Instagram Feed,Stories,Reels,Video,Live,Shops,andmessaging are places where people and creators can connect and express themselves through photos,video,and private messaging,anddiscover and shop from their favorite

84、 businesses.Messenger.Messenger is a simple yet powerful messaging application for people to connect with friends,family,communities,andbusinesses across platforms and devices through text,audio and video calls.Table of ContentsWhatsApp.WhatsApp is a simple,reliable,and secure messaging application

85、that is used by people and businesses around the world tocommunicate and transact in a private way.Reality Labs ProductsMany of our metaverse investments are directed toward long-term,cutting edge research and development for products that are not on the markettoday and may only be fully realized in

86、 the next decade.This includes exploring new technologies such as neural interfaces using electromyography,which lets people control their devices using neuromuscular signals,as well as innovations in artificial intelligence(AI)and hardware to help build next-generation interfaces.In the near term,w

87、e are continuing to develop early metaverse experiences through Reality Labs augmented and virtual realityproducts that help people feel connected,anytime,anywhere.Our current product offerings include Meta Quest virtual reality devices,as well as softwareand content available through the Meta Quest

88、 Store,which enable a range of social experiences that allow people to defy physical distance,includinggaming,fitness,entertainment,and more.For example,we have launched Horizon Worlds,a social platform where people can interact with friends,meetnew people,play games,and attend virtual events,and Ho

89、rizon Workrooms,a virtual reality space for teams to connect and collaborate at work.As partof our virtual reality initiatives,we have also introduced mixed reality capabilities through our Meta Reality system on Meta Quest Pro,which allows usersto experience the immersion and presence of virtual re

90、ality while still being grounded in the physical world.As part of our augmented reality initiatives,wehave introduced Ray-Ban Stories smart glasses,which let people stay more present through hands-free interaction,and Meta Spark,a platform thatallows creators and businesses to build augmented realit

91、y experiences that bring the digital and physical worlds together in our apps.In general,while allof these investments are part of our long-term initiative to help build the metaverse,our virtual reality and social platform efforts also include notableshorter-term projects developing specific produc

92、ts and services to go to market,whereas our augmented reality efforts are primarily directed towardlonger-term research and development projects.For example,in 2023,we expect to spend approximately 50%of our Reality Labs operating expenses onour augmented reality initiatives,approximately 40%on our

93、virtual reality initiatives,and approximately 10%on social platforms and other initiatives.Weapply significant judgment in estimating this expense breakdown as there are certain shared costs across product lines,and our expectations are subjectto change,including as the metaverse ecosystem and our b

94、usiness strategies evolve.In particular,we regularly evaluate our product roadmaps andmake significant changes as our understanding of the technological challenges and market landscape and our product ideas and designs evolve.CompetitionOur business is characterized by innovation,rapid change,and di

95、sruptive technologies.We compete with companies providing connection,sharing,discovery,and communication products and services to users online,as well as companies that sell advertising to businesses looking to reachconsumers and/or develop tools and systems for managing and optimizing advertising c

96、ampaigns.We face significant competition in every aspect of ourbusiness,including,but not limited to,companies that facilitate the ability of users to create,share,communicate,and discover content and informationonline or enable marketers to reach their existing or prospective audiences.We compete t

97、o attract,engage,and retain people who use our products,toattract and retain businesses that use our free or paid business and advertising services,and to attract and retain developers who build compellingapplications that integrate with our products.We also compete with companies that develop and d

98、eliver consumer hardware and virtual and augmentedreality products and services.As we introduce or acquire new products,as our existing products evolve,or as other companies introduce new productsand services,including as part of efforts to develop the metaverse or innovate through the application o

99、f new technologies such as AI,we may becomesubject to additional competition.TechnologyOur product development philosophy centers on continuous innovation in creating and improving products that are social by design,which meansthat our products are designed to place people and their social interacti

100、ons at the core of the product experience.As our user base grows,asengagement with products like video and virtual reality increases,and as we deepen our investment in new technologies,our computing needs continueto expand.We make significant investments in technology both to improve our existing pr

101、oducts and services and to develop new ones,as well as for ourmarketers and developers.We are also investing in protecting the security,privacy,and integrity of our platform by investing in both people andtechnology to strengthen our systems against abuse.Across all of these efforts,we are making si

102、gnificant investments in AI and machine learning,including to recommend relevant unconnected content across our products through our AI-powered discovery engine,to enhance our advertising toolsand improve our ad delivery,targeting,and measurement capabilities,andTable of Contentsto develop new produ

103、ct features using generative AI.Sales and OperationsThe majority of our marketers use our self-service ad platform to launch and manage their advertising campaigns.We also have a global salesforce that is focused on attracting and retaining advertisers and providing support to them throughout the st

104、ages of the marketing cycle from pre-purchasedecision-making to real-time optimizations to post-campaign analytics.We work directly with these advertisers,as well as through advertising agenciesand resellers.We operate offices in more than 90 cities around the globe,the majority of which have a sale

105、s presence.We also invest in and rely on self-service tools to provide direct customer support to our users and partners.MarketingHistorically,our communities have generally grown organically with people inviting their friends to connect with them,supported by internal effortsto stimulate awareness

106、and interest.In addition,we have invested and will continue to invest in marketing our products and services to grow our brandand help build community around the world.Intellectual PropertyTo establish and protect our proprietary rights,we rely on a combination of patents,trademarks,copyrights,trade

107、 secrets,including know-how,license agreements,confidentiality procedures,non-disclosure agreements with third parties,employee disclosure and invention assignment agreements,and other contractual rights.In addition,to further protect our proprietary rights,from time to time we have purchased patent

108、s and patent applicationsfrom third parties.We do not believe that our proprietary technology is dependent on any single patent or copyright or groups of related patents orcopyrights.We believe the duration of our patents is adequate relative to the expected lives of our products.Government Regulati

109、onWe are subject to a variety of laws and regulations in the United States and abroad that involve matters central to our business,many of which arestill evolving and being tested in courts,and could be interpreted in ways that could harm our business.These laws and regulations involve mattersinclud

110、ing privacy,data use,data protection and personal information,biometrics,encryption,rights of publicity,content,integrity,intellectual property,advertising,marketing,distribution,data security,data retention and deletion,data localization and storage,data disclosure,artificial intelligence andmachin

111、e learning,electronic contracts and other communications,competition,protection of minors,consumer protection,civil rights,accessibility,telecommunications,product liability,e-commerce,taxation,economic or other trade controls including sanctions,anti-corruption and political lawcompliance,securitie

112、s law compliance,and online payment services.Foreign data protection,privacy,content,competition,consumer protection,andother laws and regulations can impose different obligations,or penalties or fines for non-compliance,or be more restrictive than those in the UnitedStates.These U.S.federal,state,a

113、nd foreign laws and regulations,which in some cases can be enforced by private parties in addition to governmententities,are constantly evolving and can be subject to significant change.As a result,the application,interpretation,and enforcement of these laws andregulations are often uncertain,partic

114、ularly in the new and rapidly evolving industry in which we operate,and may be interpreted and appliedinconsistently from jurisdiction to jurisdiction and inconsistently with our current policies and practices.For example,regulatory or legislative actions orlitigation affecting the manner in which w

115、e display content to our users,moderate content,or obtain consent to various practices,or otherwise relating tocontent that is made available on our products,could adversely affect our financial results.In the United States,the U.S.Supreme Court recently agreedto review a matter in which the scope o

116、f the protections available to online platforms under Section 230 of the Communications Decency Act(Section230)is at issue.In addition,there have been,and continue to be,various efforts to remove or restrict the scope of the protections available to onlineplatforms under Section 230,and any such cha

117、nges may increase our costs or require significant changes to our products,business practices,oroperations,which could adversely affect our business and financial results.We are also subject to evolving laws and regulations that dictate whether,how,and under what circumstances we can transfer,proces

118、s and/orreceive certain data that is critical to our operations,including data shared between countries or regions in which we operate and data shared among ourproducts and services.If we are unable to transfer data between and among countries and regions in which we operate,or if we are restricted

119、fromsharing data among our products and services,Table of Contentsit could affect our ability to provide our services,the manner in which we provide our services or our ability to target ads,which could adversely affect ourfinancial results.For example,the Privacy Shield,a transfer framework we reli

120、ed upon for data transferred from the European Union to the United States,was invalidated in July 2020 by the Court of Justice of the European Union(CJEU).In addition,the other bases upon which Meta relies to transfer suchdata,such as Standard Contractual Clauses(SCCs),have been subjected to regulat

121、ory and judicial scrutiny.On July 6,2022,we received a draftdecision from the Irish Data Protection Commission(IDPC)that preliminarily concluded that Meta Platforms Irelands reliance on SCCs in respect ofEuropean Union/European Economic Area Facebook user data does not achieve compliance with the Ge

122、neral Data Protection Regulation(GDPR)andpreliminarily proposed that such transfers of user data from the European Union to the United States should therefore be suspended.Separately,onMarch 25,2022,the European Union and United States announced that they had reached an agreement in principle on a n

123、ew EU-U.S.Data PrivacyFramework(EU-U.S.DPF).On October 7,2022,President Biden signed the Executive Order on Enhancing Safeguards for United States SignalsIntelligence Activities(E.O.),and on December 13,2022,the European Commission published its draft adequacy decision on the proposed new EU-U.S.DPF

124、.We believe a final decision in this inquiry may issue as early as the first quarter of 2023.Although the E.O.is a significant and positive step,if noadequacy decision is adopted by the European Commission and we are unable to continue to rely on SCCs or rely upon other alternative means of datatran

125、sfers from the European Union to the United States,we will likely be unable to offer a number of our most significant products and services,includingFacebook and Instagram,in Europe,which would materially and adversely affect our business,financial condition,and results of operations.We have been su

126、bject to other significant legislative and regulatory developments in the past,and proposed or new legislation and regulationscould significantly affect our business in the future.For example,we have implemented a number of product changes and controls as a result ofrequirements under the GDPR,and m

127、ay implement additional changes in the future.The GDPR also requires submission of personal data breachnotifications to our lead European Union privacy regulator,the IDPC,and includes significant penalties for non-compliance with the notification obligationas well as other requirements of the regula

128、tion.The interpretation of the GDPR is still evolving and draft decisions in investigations by the IDPC aresubject to review by other European privacy regulators as part of the GDPRs consistency mechanism,which may lead to significant changes in the finaloutcome of such investigations.As a result,th

129、e interpretation and enforcement of the GDPR,as well as the imposition and amount of penalties for non-compliance,are subject to significant uncertainty.In addition,Brazil,the United Kingdom,and other countries have enacted similar data protectionregulations imposing data privacy-related requirement

130、s on products and services offered to users in their respective jurisdictions.The CaliforniaConsumer Privacy Act,as amended by the California Privacy Rights Act,and similar laws recently enacted by other states also establish certaintransparency rules and create certain data privacy rights for users

131、.In addition,the European Unions ePrivacy Directive and national implementation lawsimpose additional limitations on the use of data across messaging products and include significant penalties for non-compliance.Changes to our productsor business practices as a result of these or similar development

132、s have in the past adversely affected,and may in the future adversely affect,ouradvertising business.Similarly,there are a number of legislative proposals or recently enacted laws in the European Union,the United States,at both thefederal and state level,as well as other jurisdictions that could imp

133、ose new obligations or limitations in areas affecting our business.For example,theDigital Markets Act(DMA)in the European Union imposes new restrictions and requirements on companies like ours,including in areas such as thecombination of data across services,mergers and acquisitions,and product desi

134、gn.The DMA also includes significant penalties for non-compliance,andits key requirements will be enforceable against designated gatekeeper companies in early 2024.We expect the DMA will cause us to incur significantcompliance costs and make additional changes to our products or business practices.T

135、he requirements under the DMA will likely be subject to furtherinterpretation and regulatory engagement.Pending or future proposals to modify competition laws in the United States and other jurisdictions could havesimilar effects.Further,the Digital Services Act(DSA)in the European Union,which will

136、apply to our business as early as June 2023,will impose newrestrictions and requirements for our products and services and may significantly increase our compliance costs.The DSA also includes significantpenalties for non-compliance.In addition,some countries,such as India and Turkey,are considering

137、 or have passed legislation implementing dataprotection requirements or requiring local storage and processing of data or similar requirements that could increase the cost and complexity of deliveringour services,cause us to cease the offering of our products and services in certain countries,or res

138、ult in fines or other penalties.New legislation orregulatory decisions that restrict our ability to collect and use information about minors may also result in limitations on our advertising services or ourability to offer products and services to minors in certain jurisdictions.We are,and expect to

139、 continue to be,the subject of investigations,inquiries,data requests,requests for information,actions,and audits bygovernment authorities and regulators in the United States,Europe,and around the world,particularly in the areas of privacy and data protection,including with respect to minors,law enf

140、orcement,consumer protection,civilTable of Contentsrights,content moderation,and competition.We are also currently,and may in the future be,subject to regulatory orders or consent decrees,includingthe modified consent order we entered into with the U.S.Federal Trade Commission(FTC),which took effect

141、 in April 2020 and,among other matters,requires us to maintain a comprehensive privacy program.Orders issued by,or inquiries or enforcement actions initiated by,government or regulatoryauthorities could cause us to incur substantial costs,expose us to civil and criminal liability(including liability

142、 for our personnel)or penalties(includingsubstantial monetary remedies),interrupt or require us to change our business practices in a manner materially adverse to our business(includingchanges to our products or user data practices),result in negative publicity and reputational harm,divert resources

143、 and the time and attention ofmanagement from our business,or subject us to other structural or behavioral remedies that adversely affect our business.For additional information about government regulation applicable to our business,see Part I,Item 1A,Risk Factors in this Annual Report onForm 10-K.H

144、uman CapitalAt Meta,our mission is to give people the power to build community and bring the world closer together.People are at the heart of every connectionwe empower,and we are proud of our unique company culture.We strive to build diverse teams across engineering,product design,marketing,and oth

145、erareas to further our mission.As we look forward,we expect the lasting effects of the global COVID-19 pandemic will change how we work and who we reach.We are proud ofour response to the COVID-19 pandemic both internally and externally.Employee benefits were robust and established quickly:we implem

146、ented 15 daysof subsidized backup care for child,adult,or eldercare;we paid emergency leave to help address short-term or transitional needs;and we established atemporary stipend to help employees work from home,to name just a few of the benefits.We are committed to fostering an enriching environmen

147、t for our global workforce,and we are focused on supporting our people in doing the bestwork of their careers,no matter where they are located.For example:Location is flexible but presence is essential.As of September 30,2022,83%of managers at Meta had direct reports in a different location,and 24%o

148、f our employees were fully remote.Remote work has helped us reach new talent in a competitive tech landscape and broaden our representation.We have seen that candidateswho accepted remote job offers were more often underrepresented people.Beginning March 2023,we are permitting employees in eligible

149、roles to transfer to any Meta office within their country of employment.Weexpect distributed teams to establish strong norms that support efficiency,including more predictable and coordinated in-person working time.At the start of the COVID-19 pandemic,the world rapidly moved online and the surge of

150、 online commerce led to accelerated revenue growth.Manypeople predicted this would be a permanent acceleration that would continue even after the pandemic ended.Instead,not only did online commercereturn to prior trends,but the more challenging macroeconomic environment and limitations on our ad tar

151、geting and measurement tools,among otherfactors,contributed to a decline in our revenue.To address this new environment,we took a number of steps to become a more capital efficient company and,in November 2022,made one of themost difficult changes in Metas history and announced a layoff of approxima

152、tely 11,000 employees.The cost reduction efforts that we announced,including our plans to scale back budgets,reduce company perks,shrink our real estate footprint,and restructure teams to increase efficiency alonewould not bring our expenses in line with our revenue growth and we had to implement th

153、e layoff.We made it a priority to treat outgoing employees withrespect and announced a package for U.S.employees that included:Severance:16 weeks of base pay plus two additional weeks for every year of service.Paid time off:payment for all remaining paid time off.Table of ContentsRestricted stock un

154、it vesting:receipt of November 2022 vesting for outstanding employee restricted stock unit awards.Health insurance:coverage of the cost of healthcare for employees and their families for six months.Career services:three months of career support with an external vendor,including early access to unpub

155、lished job leads.Immigration support:dedicated immigration specialists to help guide employees based on their needs.We offered similar support for outgoing employees outside of the United States,taking into account local employment laws.Employee Learning and DevelopmentWe value our investment in gro

156、wing and keeping a highly skilled and efficient workforce.In addition to permitting employees to seek educationreimbursement,we offer career development opportunities and work experience programs that extend beyond the physical and virtual classroom.To dothis,we utilize various learning modalities,s

157、uch as live virtual and in-person learning experiences,on-demand e-learning,self-service resources,learningcommunities,and coaching engagements.The Pulse of Our WorkforceEach year,we conduct company-wide employee surveys to help understand how employees feel about working at Meta and what we can do

158、toimprove their experience.Our surveys help us measure company,manager,and personal experience over time.Further,our more frequent surveys,suchas those that have been administered daily to an ongoing random sample of employees,allows us to measure real-time sentiment around emergingevents and compan

159、y changes.These surveys are designed to invite feedback and actionable suggestions,inform decisions,and drive change across thecompany.Health and Well-beingMetas health and well-being programs are designed to give employees a choice of flexible benefits to help them reach their personal well-beinggo

160、als.Our programs are tailored to help boost employee physical and mental health,create financial peace of mind,provide support for families,and helpemployees build a strong community.Programs are designed and funded to support needs like autism care,cancer care,transgender services,holisticwell-bein

161、g,and mental health programs,which represent a few of the ways we support our employees and their dependents.Diversity,Equity and InclusionWe work to build a diverse and inclusive workplace where we can leverage our collective cognitive diversity to build the best products and make thebest decisions

162、 for the global community we serve.We offer full-time fully remote positions,including in locations where we do not have offices,which has deepened the diversity of our candidatepool.As published in our Diversity Report in July 2022,we saw that providing remote optionality increased the diversity of

163、 the overall composition of ourworkforce:U.S candidates who accepted remote job offers were substantially more likely to be Black,Hispanic,Native American,Alaskan Native,PacificIslander,veterans and/or people with disabilities,and globally,candidates who accepted remote job offers were more likely t

164、o be women.As part of our 2022 Diversity Report,we published our global gender diversity and U.S.ethnic diversity workforce data.As of June30,2022,ourglobal employee base was comprised of 37.1%females and 62.9%males,and our U.S.employee base was comprised of the following ethnicities:46.5%Asian,37.6

165、%White,6.7%Hispanic,4.9%Black,4.0%two or more ethnicities,and 0.3%additional groups(including American Indian or AlaskaNative and Native Hawaiian or Other Pacific Islander).We want our products to work for the world and we need to grow and keep the best talent in order to do that.To aid in this effo

166、rt,we have takensteps to reduce bias from our hiring processes and performance management systems.Table of ContentsWe have also invested in learning opportunities to identify and reduce inherent bias through Diversity,Equity and Inclusion trainings for ouremployees and enhanced learning and developm

167、ent courses.In addition,we offer career development programs to employees,including opportunitiesfor women leaders at Meta to connect,support and grow together and programs to help ensure that we develop leaders of color,build a more diverseleadership pipeline and foster a culture of sponsorship thr

168、ough leader advocacy.Compensation and BenefitsWe offer competitive compensation to attract and retain the best people,and we help care for our people so they can focus on our mission.Ouremployees total compensation package includes market-competitive salary,bonuses or sales incentives,and equity.We

169、generally offer full-timeemployees equity at the time of hire and through annual equity grants because we want them to be owners of the company and committed to our long-term success.We have conducted pay equity analyses for many years,and continue to be committed to pay equity.In 2022,we announced

170、that ouranalyses indicate that we continue to have pay equity across genders globally and race in the United States for people in similar jobs,accounting forfactors such as location,role,and level.Through Life Meta,our holistic approach to benefits,we provide our employees and their dependents with

171、resources to help them thrive.We offera wide range of benefits across areas such as health,family,finance,community,and time away,including healthcare and wellness benefits,familybuilding benefits,family care resources,retirement savings plans,access to tax and legal services,and Meta Resource Group

172、s to build community atMeta.Corporate InformationWe were incorporated in Delaware in July 2004.We completed our initial public offering in May 2012 and our Class A common stock is currentlylisted on the Nasdaq Global Select Market under the symbol META.Our principal executive offices are located at

173、1601 Willow Road,Menlo Park,California 94025,and our telephone number is(650)543-4800.Meta,the Meta logo,Facebook,FB,Instagram,Oculus,WhatsApp,and our other registered or common law trademarks,service marks,or tradenames appearing in this Annual Report on Form 10-K are the property of Meta Platforms

174、,Inc.or its affiliates.Other trademarks,service marks,or tradenames appearing in this Annual Report on Form 10K are the property of their respective owners.Available InformationOur Annual Reports on Form 10-K,Quarterly Reports on Form 10-Q,Current Reports on Form 8-K,and amendments to reports filed

175、pursuant toSections 13(a)and 15(d)of the Securities Exchange Act of 1934,as amended(Exchange Act),are filed with the U.S.Securities and ExchangeCommission(SEC).We are subject to the informational requirements of the Exchange Act and file or furnish reports,proxy statements,and otherinformation with

176、the SEC.Such reports and other information filed by us with the SEC are available free of charge on our website at whensuch reports are available on the SECs website.We use our and as well as Mark Zuckerbergs FacebookPage( Instagram account( means of disclosing material non-public information and fo

177、rcomplying with our disclosure obligations under Regulation FD.The SEC maintains an Internet site that contains reports,proxy and information statements,and other information regarding issuers that fileelectronically with the SEC at www.sec.gov.The contents of the websites referred to above are not

178、incorporated into this filing.Further,our references to the URLs for these websites areintended to be inactive textual references only.13Table of ContentsItem 1A.Risk FactorsCertain factors may have a material adverse effect on our business,financial condition,and results of operations.You should co

179、nsider carefully the risksand uncertainties described below,in addition to other information contained in this Annual Report on Form 10-K,including our consolidated financialstatements and related notes.The risks and uncertainties described below are not the only ones we face.Additional risks and un

180、certainties that we areunaware of,or that we currently believe are not material,may also become important factors that adversely affect our business.If any of the followingrisks actually occurs,our business,financial condition,results of operations,and future prospects could be materially and advers

181、ely affected.In thatevent,the trading price of our Class A common stock could decline,and you could lose part or all of your investment.Summary Risk FactorsOur business is subject to a number of risks,including risks that may prevent us from achieving our business objectives or may adversely affect

182、ourbusiness,financial condition,results of operations,cash flows,and prospects.These risks are discussed more fully below and include,but are not limitedto,risks related to:Risks Related to Our Product Offeringsour ability to add and retain users and maintain levels of user engagement with our produ

183、cts;the loss of,or reduction in spending by,our marketers;reduced availability of data signals used by our ad targeting and measurement tools;ineffective operation with mobile operating systems or changes in our relationships with mobile operating system partners;failure of our new products,or chang

184、es to our existing products,to attract or retain users or generate revenue;Risks Related to Our Business Operations and Financial Resultsour ability to compete effectively;fluctuations in our financial results;unfavorable media coverage and other risks affecting our ability to maintain and enhance o

185、ur brands;the COVID-19 pandemic,including its impact on our advertising business;acquisitions and our ability to successfully integrate our acquisitions;our ability to build,maintain,and scale our technical infrastructure,and risks associated with disruptions in our service;operating our business in

186、 multiple countries around the world;litigation,including class action lawsuits;Risks Related to Government Regulation and Enforcementgovernment restrictions on access to Facebook or our other products,or other actions that impair our ability to sell advertising,in their countries;complex and evolvi

187、ng U.S.and foreign privacy,data use and data protection,content,competition,consumer protection,and other laws andregulations;Table of Contentsthe impact of government investigations,enforcement actions,and settlements,including litigation and investigations by privacy and competitionauthorities;our

188、 ability to comply with regulatory and legislative privacy requirements,including our consent order with the Federal Trade Commission(FTC);Risks Related to Data,Security,and Intellectual Propertythe occurrence of security breaches,improper access to or disclosure of our data or user data,and other c

189、yber incidents or undesirable activityon our platform;our ability to obtain,maintain,protect,and enforce our intellectual property rights;andRisks Related to Ownership of Our Class A Common Stocklimitations on the ability of holders of our Class A Common Stock to influence corporate matters due to t

190、he dual class structure of our commonstock and the control of a majority of the voting power of our outstanding capital stock by our founder,Chairman,and CEO.Risks Related to Our Product OfferingsIf we fail to retain existing users or add new users,or if our users decrease their level of engagement

191、with our products,our revenue,financialresults,and business may be significantly harmed.The size of our user base and our users level of engagement across our products are critical to our success.Our financial performance has beenand will continue to be significantly determined by our success in add

192、ing,retaining,and engaging active users of our products that deliver adimpressions,particularly for Facebook and Instagram.We have experienced,and expect to continue to experience,fluctuations and declines in the sizeof our active user base in one or more markets from time to time,particularly in ma

193、rkets where we have achieved higher penetration rates.User growthand engagement are also impacted by a number of other factors,including competitive products and services,such as TikTok,that have reduced someusers engagement with our products and services,as well as global and regional business,macr

194、oeconomic,and geopolitical conditions.For example,the COVID-19 pandemic has led to increases and decreases in the size and engagement of our active user base from period to period at different pointsduring the pandemic,and may continue to have a varied impact on the size and engagement of our active

195、 user base in the future.In addition,inconnection with the war in Ukraine,access to Facebook and Instagram was restricted in Russia and these services were then prohibited by the Russiangovernment,which contributed to slight declines on a quarter-over-quarter basis in the number of DAUs and MAUs on

196、Facebook in Europe in the firstquarter and the second quarter of 2022,as well as a slight decline on a quarter-over-quarter basis in the total number of MAUs on Facebook in thesecond quarter of 2022.Any future declines in the size of our active user base may adversely impact our ability to deliver a

197、d impressions and,in turn,ourfinancial performance.If people do not perceive our products to be useful,reliable,and trustworthy,we may not be able to attract or retain users or otherwise maintain orincrease the frequency and duration of their engagement.A number of other social networking companies

198、that achieved early popularity have since seentheir active user bases or levels of engagement decline,in some cases precipitously.There is no guarantee that we will not experience a similar erosionof our active user base or engagement levels.Our user engagement patterns have changed over time,and us

199、er engagement can be difficult to measure,particularly as we introduce new and different products and services.Any number of factors can negatively affect user retention,growth,andengagement,including if:users increasingly engage with other competitive products or services;we fail to introduce new f

200、eatures,products,or services that users find engaging or if we introduce new products or services,or make changes toexisting products and services,that are not favorably received;users feel that their experience is diminished as a result of the decisions we make with respect to the frequency,promine

201、nce,format,size,andquality of ads that we display;Table of Contentsusers have difficulty installing,updating,or otherwise accessing our products on mobile devices as a result of actions by us or third parties thatwe rely on to distribute our products and deliver our services;user behavior on any of

202、our products changes,including decreases in the quality and frequency of content shared on our products and services;we are unable to continue to develop products for mobile devices that users find engaging,that work with a variety of mobile operating systemsand networks,and that achieve a high leve

203、l of market acceptance;there are decreases in user sentiment due to questions about the quality or usefulness of our products or our user data practices,concerns aboutthe nature of content made available on our products,or concerns related to privacy,safety,security,well-being,or other factors;we ar

204、e unable to manage and prioritize information to ensure users are presented with content that is appropriate,interesting,useful,andrelevant to them;we are unable to obtain or attract engaging third-party content;we are unable to successfully maintain or grow usage of and engagement with applications

205、 that integrate with our products;users adopt new technologies where our products may be displaced in favor of other products or services,or may not be featured or otherwiseavailable;there are changes mandated by legislation,government and regulatory authorities,or litigation that adversely affect o

206、ur products or users;we are unable to offer a number of our most significant products and services,including Facebook and Instagram,in Europe,or are otherwiselimited in our business operations,as a result of European regulators,courts,or legislative bodies determining that our reliance on StandardCo

207、ntractual Clauses(SCCs)or other legal bases we rely upon to transfer user data from the European Union to the United States is invalid;there is decreased engagement with our products,or failure to accept our terms of service,as part of privacy-focused changes that we haveimplemented or may implement

208、 in the future,whether voluntarily,in connection with the General Data Protection Regulation(GDPR),theEuropean Unions ePrivacy Directive,the California Privacy Rights Act(CPRA),or other laws,regulations,or regulatory actions,or otherwise;technical or other problems prevent us from delivering our pro

209、ducts in a rapid and reliable manner or otherwise affect the user experience,suchas security breaches or failure to prevent or limit spam or similar content,or users feel their experience is diminished as a result of our efforts toprotect the security and integrity of our platform;we adopt terms,pol

210、icies,or procedures related to areas such as sharing,content,user data,or advertising,or we take,or fail to take,actions toenforce our policies,that are perceived negatively by our users or the general public,including as a result of decisions or recommendations fromthe independent Oversight Board r

211、egarding content on our platform;we elect to focus our product decisions on longer-term initiatives that do not prioritize near-term user growth and engagement(for example,wehave announced plans to focus product decisions on optimizing the young adult experience in the long term);we make changes in

212、our user account login or registration processes or changes in how we promote different products and services across ourfamily of products;Table of Contentsinitiatives designed to attract and retain users and engagement,including the use of new technologies such as artificial intelligence,areunsucce

213、ssful or discontinued,whether as a result of actions by us,our competitors,or other third parties,or otherwise;third-party initiatives that may enable greater use of our products,including low-cost or discounted data plans,are scaled back or discontinued,orthe pricing of data plans otherwise increas

214、es;there is decreased engagement with our products as a result of taxes imposed on the use of social media or other mobile applications in certaincountries,internet shutdowns,or other actions by governments that affect the accessibility of our products in their countries(for example,beginning in the

215、 first quarter of 2022,our user growth and engagement were adversely affected by the war in Ukraine and service restrictionsimposed by the Russian government);we fail to provide adequate customer service to users,marketers,developers,or other partners;we,developers whose products are integrated with

216、 our products,or other partners and companies in our industry are the subject of adversemedia reports or other negative publicity,including as a result of our or their user data practices;orour current or future products,such as our development tools and application programming interfaces that enabl

217、e developers to build,grow,andmonetize applications,reduce user activity on our products by making it easier for our users to interact and share on third-party applications.From time to time,certain of these factors have negatively affected user retention,growth,and engagement to varying degrees.If

218、we are unable tomaintain or increase our user base and user engagement,particularly for our significant revenue-generating products like Facebook and Instagram,ourrevenue and financial results may be adversely affected.Any significant decrease in user retention,growth,or engagement could render our

219、productsless attractive to users,marketers,and developers,which is likely to have a material and adverse impact on our ability to deliver ad impressions and,accordingly,our revenue,business,financial condition,and results of operations.As the size of our active user base fluctuates in one or more ma

220、rketsfrom time to time,we will become increasingly dependent on our ability to maintain or increase levels of user engagement and monetization in order togrow revenue.We generate substantially all of our revenue from advertising.The loss of marketers,or reduction in spending by marketers,could serio

221、uslyharm our business.Substantially all of our revenue is currently generated from marketers advertising on Facebook and Instagram.As is common in the industry,ourmarketers do not have long-term advertising commitments with us.Many of our marketers spend only a relatively small portion of their over

222、all advertisingbudget with us.Marketers will not continue to do business with us,or they will reduce the budgets they are willing to commit to us,if we do not deliver adsin an effective manner,if they do not believe that their investment in advertising with us will generate a competitive return rela

223、tive to other alternatives,orif they are not satisfied for any other reason.We have implemented,and we will continue to implement,changes to our user data practices.Some ofthese changes reduce our ability to effectively target ads,which has to some extent adversely affected,and will continue to adve

224、rsely affect,ouradvertising business.If we are unable to provide marketers with a suitable return on investment,the demand for our ads may not increase,or maydecline,in which case our revenue and financial results may be harmed.Our advertising revenue can also be adversely affected by a number of ot

225、her factors,including:decreases in user engagement,including time spent on our products;our inability to continue to increase user access to and engagement with our products;product changes or inventory management decisions we may make that change the size,format,frequency,or relative prominence of

226、adsdisplayed on our products or of other unpaid content shared by marketers on our products;Table of Contentsour inability to maintain or increase marketer demand,the pricing of our ads,or both;our inability to maintain or increase the quantity or quality of ads shown to users;changes to the content

227、 or application of third-party policies that limit our ability to deliver,target,or measure the effectiveness of advertising,including changes by mobile operating system and browser providers such as Apple and Google;adverse litigation,government actions,or legislative,regulatory,or other legal deve

228、lopments relating to advertising,including developments thatmay impact our ability to deliver,target,or measure the effectiveness of advertising;user behavior or product changes that may reduce traffic to features or products that we successfully monetize,such as our feed and Storiesproducts,includi

229、ng as a result of increased usage of our Reels or other video or messaging products;reductions of advertising by marketers due to our efforts to implement or enforce advertising policies that protect the security and integrity of ourplatform;the availability,accuracy,utility,and security of analytic

230、s and measurement solutions offered by us or third parties that demonstrate the value ofour ads to marketers,or our ability to further improve such tools;loss of advertising market share to our competitors,including if prices to purchase our ads increase or if competitors offer lower priced,moreinte

231、grated,or otherwise more effective products;limitations on our ability to offer a number of our most significant products and services,including Facebook and Instagram,in Europe as a resultof European regulators,courts,or legislative bodies determining that our reliance on SCCs or other legal bases

232、we rely upon to transfer userdata from the European Union to the United States is invalid;changes in our marketing and sales or other operations that we are required to or elect to make as a result of risks related to complying withforeign laws or regulatory requirements or other government actions;

233、decisions by marketers to reduce their advertising as a result of announcements by us or adverse media reports or other negative publicityinvolving us,our user data practices,our advertising metrics or tools,content on our products,our interpretation,implementation,or enforcementof policies relating

234、 to content on our products(including as a result of decisions or recommendations from the independent Oversight Board),developers with applications that are integrated with our products,or other companies in our industry;reductions of advertising by marketers due to objectionable content made avail

235、able on our products by third parties,questions about our userdata practices or the security of our platform,concerns about brand safety or potential legal liability,or uncertainty regarding their own legal andcompliance obligations;the effectiveness of our ad targeting or degree to which users opt

236、in or out of the use of data for ads,including as a result of product changes andcontrols that we have implemented or may implement in the future in connection with the GDPR,ePrivacy Directive,California Privacy Rights Act(CPRA),the Digital Markets Act(DMA),other laws,regulations,regulatory actions,

237、or litigation,or otherwise,that impact our ability to use datafor advertising purposes;the degree to which users cease or reduce the number of times they engage with our ads;changes in the way advertising on mobile devices or on personal computers is measured or priced;the success of technologies de

238、signed to block the display of ads or ad measurement tools;changes in the composition of our marketer base or our inability to maintain or grow our marketer base;andTable of Contentsthe impact of macroeconomic and geopolitical conditions,whether in the advertising industry in general,or among specif

239、ic types of marketers orwithin particular geographies(for example,the war in Ukraine and service restrictions imposed by the Russian government have adverselyaffected our advertising business in Europe and other regions).From time to time,certain of these factors have adversely affected our advertis

240、ing revenue to varying degrees.The occurrence of any of these orother factors in the future could result in a reduction in demand for our ads,which may reduce the prices we receive for our ads,or cause marketers tostop advertising with us altogether,either of which would negatively affect our revenu

241、e and financial results.Our ad targeting and measurement tools incorporate data signals from user activity on websites and services that we do not control,as well assignals generated within our products,and changes to the regulatory environment,third-party mobile operating systems and browsers,andou

242、r own products have impacted,and we expect will continue to impact,the availability of such signals,which will adversely affect ouradvertising revenue.Our ad targeting and measurement tools rely on data signals from user activity on websites and services that we do not control,as well as signalsgene

243、rated within our products,in order to deliver relevant and effective ads to our users,and any changes in our ability to use such signals will adverselyaffect our business.For example,legislative and regulatory developments,such as the GDPR,ePrivacy Directive,and California Consumer Privacy Act(CCPA)

244、,as amended by the CPRA,have impacted,and we expect will continue to impact,our ability to use such signals in our ad products.In particular,we have seen increases in the number of users opting to control certain types of ad targeting in Europe following product changes implemented inconnection with

245、 our GDPR and ePrivacy Directive compliance,and we have introduced product changes that limit data signal use for certain users inCalifornia following adoption of the CCPA.Regulatory guidance,decisions,or new legislation in these or other jurisdictions,such as the DMA,may requireus to make additiona

246、l changes to our products in the future that further reduce our ability to use these signals,which has occurred in the past.Forexample,we expect to implement additional changes in response to the December 2022 decision by the IDPC regarding the legal basis for our delivery ofbehavioral advertising i

247、n Europe.In addition,mobile operating system and browser providers,such as Apple and Google,have implemented product changes and/or announcedfuture plans to limit the ability of websites and application developers to collect and use these signals to target and measure advertising.For example,in2021,

248、Apple made certain changes to its products and data use policies in connection with changes to its iOS operating system that reduce our and otheriOS developers ability to target and measure advertising,which has negatively impacted,and we expect will continue to negatively impact,the size of thebudg

249、ets marketers are willing to commit to us and other advertising platforms.In addition,we have implemented,and may continue to implement,productchanges that give users the ability to limit our use of such data signals to improve ads and other experiences on our products and services,includingchanges

250、implemented in connection with the GDPR and other regulatory frameworks.These developments have limited our ability to target and measure the effectiveness of ads on our platform and negatively impacted our advertisingrevenue.For example,our advertising revenue has been negatively impacted by market

251、er reaction to targeting and measurement challenges associatedwith iOS changes beginning in 2021.If we are unable to mitigate these developments as they take further effect in the future,our targeting andmeasurement capabilities will be materially and adversely affected,which would in turn significa

252、ntly impact our advertising revenue.Our user growth,engagement,and monetization on mobile devices depend upon effective operation with mobile operating systems,networks,technologies,products,and standards that we do not control.The substantial majority of our revenue is generated from advertising on

253、 mobile devices.There is no guarantee that popular mobile devices willcontinue to feature our products,or that mobile device users will continue to use our products rather than competing products.We are dependent on theinteroperability of our products with popular mobile operating systems,networks,t

254、echnologies,products,and standards that we do not control,such asthe Android and iOS operating systems and mobile browsers.Changes,bugs,or technical issues in such systems,or changes in our relationships withmobile operating system partners,handset manufacturers,browser developers,or mobile carriers

255、,or in the content or application of their terms of serviceor policies(which they have made in the past and continue to seek to implement)that degrade our products functionality,reduce or eliminate our abilityto update or distribute our products,give preferential treatment to competitive products,li

256、mit our ability to deliver,target,or measure the effectiveness ofads,or charge fees related to the distribution of our products or our delivery of ads have in the past adversely affected,and could in the future adverselyaffect,Table of Contentsthe usage of our products and monetization on mobile dev

257、ices.For example,Apple previously released an update to its Safari browser that limits the useof third-party cookies,which reduces our ability to provide the most relevant ads to our users and impacts monetization,and also released changes toiOS that limit our ability to target and measure ads effec

258、tively,while expanding their own advertising business.We expect that any similar changes to its,Googles,or other browser or mobile platforms will further limit our ability to target and measure the effectiveness of ads and impact monetization.Additionally,in order to deliver high quality mobile prod

259、ucts,it is important that our products work well with a range of mobile technologies,products,systems,networks,and standards that we do not control,and that we have good relationships with handset manufacturers,mobile carriers,and browserdevelopers.We may not be successful in maintaining or developi

260、ng relationships with key participants in the mobile ecosystem or in developing productsthat operate effectively with these technologies,products,systems,networks,or standards.In the event that it is more difficult for our users to access anduse our products on their mobile devices,or if our users c

261、hoose not to access or use our products on their mobile devices or use mobile products that donot offer access to our products,our user growth and user engagement could be harmed.From time to time,we may also take actions regarding thedistribution of our products or the operation of our business bas

262、ed on what we believe to be in our long-term best interests.Such actions may adverselyaffect our users and our relationships with the operators of mobile operating systems,handset manufacturers,mobile carriers,browser developers,otherbusiness partners,or advertisers,and there is no assurance that th

263、ese actions will result in the anticipated long-term benefits.In the event that our usersare adversely affected by these actions or if our relationships with such third parties deteriorate,our user growth,engagement,and monetization could beadversely affected and our business could be harmed.We have

264、 in the past experienced challenges in operating with mobile operating systems,networks,technologies,products,and standards that we do not control,and any such occurrences in the future may negatively impact our user growth,engagement,and monetization on mobile devices,which may in turn materially a

265、nd adversely affect our business and financial results.Our new products and changes to existing products could fail to attract or retain users or generate revenue and profits,or otherwiseadversely affect our business.Our ability to retain,increase,and engage our user base and to increase our revenue

266、 depends heavily on our ability to continue to evolve ourexisting products and to create successful new products,both independently and in conjunction with developers or other third parties.We may introducesignificant changes to our existing products or acquire or introduce new and unproven products

267、,including using technologies with which we have little orno prior development or operating experience.For example,we do not have significant experience with consumer hardware products or virtual oraugmented reality technology,which may adversely affect our ability to successfully develop and market

268、 these products and technologies.We continue toincur substantial costs,and we may not be successful in generating profits,in connection with these efforts.We are also making significant investments inartificial intelligence(AI)initiatives,including to recommend relevant unconnected content across ou

269、r products,enhance our advertising tools,anddevelop new product features using generative AI.These efforts,including the introduction of new products or changes to existing products,may result innew or enhanced governmental or regulatory scrutiny,litigation,ethical concerns,or other complications th

270、at could adversely affect our business,reputation,or financial results.We have also invested,and expect to continue to invest,significant resources in growing our messaging products tosupport increasing usage of such products.We have historically monetized messaging in only a limited fashion,and we

271、may not be successful in ourefforts to generate meaningful revenue or profits from messaging over the long term.In addition,we are moving forward with plans to implement end-to-end encryption across our messaging services,as well as facilitate cross-app communication between these platforms,which ar

272、e subject togovernmental and regulatory scrutiny in multiple jurisdictions.If our new products or changes to existing products fail to engage users,marketers,ordevelopers,or if our business plans are unsuccessful,we may fail to attract or retain users or to generate sufficient revenue,operating marg

273、in,or othervalue to justify our investments,and our business may be adversely affected.We make product and investment decisions that may not prioritize short-term financial results and may not produce the long-term benefitsthat we expect.We frequently make product and investment decisions that may n

274、ot prioritize short-term financial results if we believe that the decisions areconsistent with our mission and benefit the aggregate user experience and will thereby improve our financial performance over the long term.Forexample,we have implemented,and we will continue to implement,changes to our u

275、ser data practices.Some of these changes reduce our ability toeffectively target ads,which has to some extent adversely affected,and will continue to adversely affect,our advertising business.For example,our Off-Facebook Activity tool enables users to place limits on our storage and use of informati

276、on about their interactions with advertisers apps and websites,which reduces our ability to deliver the most relevant and effective ads to our users.Similarly,from time to time we update our feed display and rankingalgorithms or other product features to optimize the user experience,and these change

277、s have had,andTable of Contentsmay in the future have,the effect of reducing time spent and some measures of user engagement with our products,which could adversely affect ourfinancial results.From time to time,we also change the size,frequency,or relative prominence of ads as part of our product an

278、d monetization strategies.In addition,we have made,and we expect to continue to make,other changes to our products which may adversely affect the distribution of content ofpublishers,marketers,and developers,and could reduce their incentive to invest in their efforts on our products.We also may intr

279、oduce new features orother changes to existing products,or introduce new stand-alone products,that attract users away from properties,formats,or use cases where we havemore proven means of monetization,such as our feed products.In addition,as we focus on growing users and engagement across our famil

280、y ofproducts,from time to time these efforts have reduced,and may in the future reduce,engagement with one or more products and services in favor ofother products or services that we monetize less successfully or that are not growing as quickly.For example,we plan to continue to promote Reels,which

281、we do not currently monetize at the same rate as our feed or Stories products.These decisions may adversely affect our business and results ofoperations and may not produce the long-term benefits that we expect.We may not be successful in our metaverse strategy and investments,which could adversely

282、affect our business,reputation,or financialresults.We believe the metaverse,an embodied internet where people have immersive experiences beyond two-dimensional screens,is the nextevolution in social technology.In 2021,we announced a shift in our business and product strategy to focus on helping to b

283、ring the metaverse to life.Weexpect this will be a complex,evolving,and long-term initiative that will involve the development of new and emerging technologies,continued investmentin infrastructure as well as privacy,safety,and security efforts,and collaboration with other companies,developers,partn

284、ers,and other participants.However,the metaverse may not develop in accordance with our expectations,and market acceptance of features,products,or services we build for themetaverse is uncertain.We regularly evaluate our product roadmaps and make significant changes as our understanding of the techn

285、ological challengesand market landscape and our product ideas and designs evolve.In addition,we have limited experience with consumer hardware products and virtualand augmented reality technology,which may enable other companies to compete more effectively than us.We may be unsuccessful in our resea

286、rch andproduct development efforts,including if we are unable to develop relationships with key participants in the metaverse or develop products that operateeffectively with metaverse technologies,products,systems,networks,or standards.Our metaverse efforts may also divert resources and managementa

287、ttention from other areas of our business.We expect to continue to make significant investments in virtual and augmented reality and other technologiesto support these efforts,and our ability to support these efforts is dependent on generating sufficient profits from other areas of our business.In a

288、ddition,as our metaverse efforts evolve,we may be subject to a variety of existing or new laws and regulations in the United States and international jurisdictions,including in the areas of privacy,safety,competition,content regulation,consumer protection,and e-commerce,which may delay or impede the

289、development of our products and services,increase our operating costs,require significant management time and attention,or otherwise harm ourbusiness.As a result of these or other factors,our metaverse strategy and investments may not be successful in the foreseeable future,or at all,whichcould adve

290、rsely affect our business,reputation,or financial results.If we are not able to maintain and enhance our brands,our ability to expand our base of users,marketers,and developers may be impaired,and our business and financial results may be harmed.We believe that our brands have significantly contribu

291、ted to the success of our business.We also believe that maintaining and enhancing ourbrands is critical to expanding our base of users,marketers,and developers.Many of our new users are referred by existing users.Maintaining andenhancing our brands will depend largely on our ability to continue to p

292、rovide useful,reliable,trustworthy,and innovative products,which we may not dosuccessfully.We may introduce new products or terms of service or policies that users do not like,which may negatively affect our brands.Additionally,the actions of our developers or advertisers may affect our brands if us

293、ers do not have a positive experience using third-party applications integrated withour products or interacting with parties that advertise through our products.We will also continue to experience media,legislative,or regulatory scrutiny ofour actions or decisions regarding user privacy,data use,enc

294、ryption,content,product design,algorithms,advertising,competition,and other issues,including actions or decisions in connection with elections,the COVID-19 pandemic,or geopolitical events,which has in the past adversely affected,andmay in the future adversely affect,our reputation and brands.For exa

295、mple,beginning in September 2021,we became the subject of media,legislative,and regulatory scrutiny as a result of a former employees allegations and release of internal company documents relating to,among other things,ouralgorithms,advertising and user metrics,and content enforcement practices,as w

296、ell as misinformation and other undesirable activity on our platform,anduser well-being.In addition,in March 2018,we announced developments regarding the misuse of certain data by a developer that shared such data withthird parties inTable of Contentsviolation of our terms and policies.We also may f

297、ail to respond expeditiously or appropriately to the sharing of objectionable content on our services orobjectionable practices by advertisers or developers,or to otherwise enforce our policies or address user concerns,which has occurred in the past andwhich could erode confidence in our brands.Our

298、brands may also be negatively affected by the actions of users that are deemed to be hostile orinappropriate to other users,by the actions of users acting under false or inauthentic identities,by the use of our products or services to disseminateinformation that is deemed to be misleading(or intende

299、d to manipulate opinions),by perceived or actual efforts by governments to obtain access to userinformation for security-related purposes or to censor certain content on our platform,by the use of our products or services for illicit or objectionableends,including,for example,any such actions around

300、 the pandemic,geopolitical events,or elections in the United States and around the world,bydecisions or recommendations regarding content on our platform from the independent Oversight Board,by research or media reports concerning theperceived or actual impacts of our products or services on user we

301、ll-being,or by our decisions regarding whether to remove content or suspendparticipation on our platform by persons who violate our community standards or terms of service.Maintaining and enhancing our brands will require us tomake substantial investments and these investments may not be successful.

302、Certain of our actions,such as the foregoing matter regarding developermisuse of data and concerns around our handling of political speech and advertising,hate speech,and other content,as well as user well-being issues,have eroded confidence in our brands and may continue to do so in the future.If w

303、e fail to successfully promote and maintain our brands or if we incurexcessive expenses in this effort,our business and financial results may be adversely affected.We may not be able to continue to successfully maintain or grow usage of and engagement with applications that integrate with our produc

304、ts.We have made and are continuing to make investments to enable developers to build,grow,and monetize applications that integrate with ourproducts.Such existing and prospective developers may not be successful in building,growing,or monetizing applications that create and maintain userengagement.Ad

305、ditionally,developers may choose to build on other platforms,including platforms controlled by third parties,rather than building productsthat integrate with our products.We are continuously seeking to balance the distribution objectives of our developers with our desire to provide an optimaluser ex

306、perience,and we may not be successful in achieving a balance that continues to attract and retain such developers.For example,from time totime,we have taken actions to reduce the volume of communications from these developers to users on our products with the objective of enhancing theuser experienc

307、e,and such actions have reduced distribution from,user engagement with,and our monetization opportunities from,applicationsintegrated with our products.In addition,as part of our efforts related to privacy,safety,and security,we conduct investigations and audits of platformapplications from time to

308、time,and we also have announced several product changes that restrict developer access to certain user data.In someinstances,these actions,as well as other actions to enforce our policies applicable to developers,have adversely affected,or will adversely affect,ourrelationships with developers.If we

309、 are not successful in our efforts to maintain or grow the number of developers that choose to build products thatintegrate with our products or if we are unable to continue to build and maintain good relations with such developers,our user growth and userengagement and our financial results may be

310、adversely affected.Risks Related to Our Business Operations and Financial ResultsOur business is highly competitive.Competition presents an ongoing threat to the success of our business.We compete with companies providing connection,sharing,discovery,and communication products and services to users

311、online,as well ascompanies that sell advertising to businesses looking to reach consumers and/or develop tools and systems for managing and optimizing advertisingcampaigns.We face significant competition in every aspect of our business,including,but not limited to,companies that facilitate the abili

312、ty of users tocreate,share,communicate,and discover content and information online or enable marketers to reach their existing or prospective audiences.Wecompete to attract,engage,and retain people who use our products,to attract and retain businesses that use our free or paid business and advertisi

313、ngservices,and to attract and retain developers who build compelling applications that integrate with our products.We also compete with companies thatdevelop and deliver consumer hardware and virtual and augmented reality products and services.As we introduce or acquire new products,as ourexisting p

314、roducts evolve,or as other companies introduce new products and services,including as part of efforts to develop the metaverse or innovatethrough the application of new technologies such as artificial intelligence,we may become subject to additional competition.Table of ContentsSome of our current a

315、nd potential competitors may have greater resources,experience,or stronger competitive positions in certain productsegments,geographic regions,or user demographics than we do.For example,some of our competitors may be domiciled in different countries andsubject to political,legal,and regulatory regi

316、mes that enable them to compete more effectively than us.These factors may allow our competitors torespond more effectively than us to new or emerging technologies and changes in market conditions.We believe that some users,particularly youngerusers,are aware of and actively engaging with other prod

317、ucts and services similar to,or as a substitute for,our products and services,and we believe thatsome users have reduced their use of and engagement with our products and services in favor of these other products and services.In the event thatusers increasingly engage with other products and service

318、s,we may experience a decline in use and engagement in key user demographics or morebroadly,in which case our business would likely be harmed.Our competitors may develop products,features,or services that are similar to ours or that achieve greater acceptance,may undertake more far-reaching and succ

319、essful product development efforts or marketing campaigns,or may adopt more aggressive pricing policies.Some competitors maygain a competitive advantage against us in areas where we operate,including:by making acquisitions;by limiting our ability to deliver,target,or measurethe effectiveness of ads;

320、by imposing fees or other charges related to our delivery of ads;by making access to our products more difficult or impossible;bymaking it more difficult to communicate with our users;or by integrating competing platforms,applications,or features into products they control such asmobile device opera

321、ting systems,search engines,browsers,or e-commerce platforms.For example,each of Apple and Google have integratedcompetitive products with iOS and Android,respectively.In addition,Apple has released changes to iOS that limit our ability,and the ability of others inthe digital advertising industry,to

322、 target and measure ads effectively.As a result,our competitors may,and in some cases will,acquire and engage usersor generate advertising or other revenue at the expense of our own efforts,which would negatively affect our business and financial results.In addition,from time to time,we may take act

323、ions in response to competitive threats,but we cannot assure you that these actions will be successful or that they willnot negatively affect our business and financial results.We believe that our ability to compete effectively depends upon many factors both within and beyond our control,including:t

324、he popularity,usefulness,ease of use,performance,and reliability of our products compared to our competitors products;the size and composition of our user base;the engagement of users with our products and competing products;our ability to attract and retain businesses who use our free or paid busin

325、ess and advertising services;the timing and market acceptance of products,including developments and enhancements to our or our competitors products;our safety and security efforts and our ability to protect user data and to provide users with control over their data;our ability to distribute our pr

326、oducts to new and existing users;our ability to monetize our products;the frequency,size,format,quality,and relative prominence of the ads displayed by us or our competitors;customer service and support efforts;marketing and selling efforts,including our ability to measure the effectiveness of our a

327、ds and to provide marketers with a compelling return ontheir investments;our ability to establish and maintain developers interest in building applications that integrate with our products;our ability to establish and maintain publisher interest in integrating their content with our products;Table o

328、f Contentschanges mandated by legislation,regulatory authorities,or litigation,some of which may have a disproportionate effect on us;acquisitions or consolidation within our industry,which may result in more formidable competitors;our ability to attract,retain,and motivate talented employees,partic

329、ularly software engineers,designers,and product managers;our ability to cost-effectively manage and grow our operations;andour reputation and brand strength relative to those of our competitors.If we are not able to compete effectively,our user base,level of user engagement,and ability to deliver ad

330、 impressions may decrease,we maybecome less attractive to developers and marketers,and our revenue and results of operations may be materially and adversely affected.Our financial results will fluctuate from quarter to quarter and are difficult to predict.Our quarterly financial results have fluctua

331、ted in the past and will fluctuate in the future.Additionally,we have a limited operating history with thecurrent scale of our business,which makes it difficult to forecast our future results.As a result,you should not rely upon our past quarterly financial resultsas indicators of future performance

332、.You should take into account the risks and uncertainties frequently encountered by companies in rapidly evolvingmarkets.Our financial results in any given quarter can be influenced by numerous factors,many of which we are unable to predict or are outside of ourcontrol,including:our ability to maint

333、ain and grow our user base and user engagement,particularly for our products that deliver ad impressions;our ability to attract and retain marketers in a particular period;our ability to recognize revenue or collect payments from marketers in a particular period;fluctuations in spending by our marketers due to seasonality,such as historically strong spending in the fourth quarter of each year,epis