Facebook mother or father firm Meta has simply reported its earnings for the second quarter of 2022, and it was one other quarter of shrinking income. Total income of $28.8 billion was solely down one % in comparison with Q2 one yr in the past, however web revenue dropped 36 % to $6.7 billion. Making nearly $7 billion in revenue will not be a foul quarter for anybody, however the dimension of the decline in comparison with a yr in the past is fairly vital. And, in accordance with the Wall Street Journal, that is the first-ever drop in income for Meta / Facebook — so though we’re solely speaking one %, it is nonetheless noteworthy.
Revenue from promoting and Meta’s “household of apps” was basically flat year-over-year, and Reality Labs (residence to {hardware} just like the Meta Quest and different metaverse-related initiatives) truly grew 48 % year-over-year to $452 million. But Reality Labs accounted for a $2.8 billion loss this quarter, a 15 % bigger loss than Q2 one yr in the past. At this charge, it appears probably that Reality Labs will lose Meta greater than the $10 billion it price the corporate in 2021. Indeed, the corporate stated it expects Reality Labs income to be decrease within the third quarter.
This comes the identical day that the FTC introduced it was looking for to dam Meta’s acquisition of Supernatural VR exercise app maker Within, a proposed sale that was introduced final yr. “Instead of competing on the merits, Meta is trying to buy its way to the top,” John Newman, deputy director of the FTC’s Bureau of Competition, stated in an announcement.
In June, Meta stated that it had 2.88 billion every day lively customers in its household of apps (which incorporates Facebook, Instagram, WhatsApp and Messenger) and three.65 billion month-to-month lively customers, each of that are up 4 % in comparison with a yr in the past. Facebook-specific development was smaller, although — common every day and month-to-month customers solely elevated three % and one %, respectively.
Buried in as we speak’s press launch is a considerably uncommon management change announcement as properly. As of November 1st, the corporate will welcome its first Chief Strategy Officer, David Wehner, who’s presently Meta’s Chief Financial Officer. VP of Finance Susan Li might be promoted to the CFO place when this transformation goes into impact. As CSO, Wehner will “oversee the corporate’s technique and company improvement,” a presumably broader scope of duties in comparison with his present position.
Meta is holding a name with traders at 5PM ET, and we’ll be listening in to listen to feedback from CEO Mark Zuckerberg and can replace this put up with something we be taught.