Meta had free cash flow of $4.45 billion in the second quarter ended June 30.
Facebook-parent Meta Platforms said on Thursday it would make its first bond offering, at a time when the social media company is making massive investments to fund its Metaverse projects.
Meta did not disclose the size of the offering, but said it would use the proceeds for capital expenditures, share repurchases, acquisitions or investments.
Among the high-flying megacap technology companies, Meta is the only company with no debt on its books.
The company’s free-cash flow is shrinking as it moves forward with its Metaverse plans, which led to its name changing from Facebook to Meta Platform last year.
In the second quarter ended June 30, Meta had free cash flow of $4.45 billion, compared to $8.51 billion a year ago and $8.53 billion in the previous quarter. Last week, the company also reported a decline in quarterly revenue for the first time.
Chief Financial Officer Dave Weiner said on a post-earnings conference call that the company had a “substantial amount” in its buyback program and expects to continue to buybacks as part of its capital allocation strategy.
The company received an ‘A1’ rating from Moody’s and an ‘AA-rating’ and a ‘stable’ outlook from S&P.
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