![]() Reality Labs lost nearly $3.7 billion in the September quarter, and has cost the company a total of $9.4 billion so far this year. ![]() Wehner said operating losses from the company’s metaverse ambitions, which are categorized under its Reality Labs unit, are expected to “grow significantly year-over-year” in 2023. These challenges to its core business come as Meta is funneling billions of dollars into an ambitious new bet to build a future version of the internet called the metaverse that likely remains years away. Zuckerberg noted on the call that Instagram now has more than 2 billion monthly active users and WhatsApp has more than 2 billion daily active users. Daily active users on Meta’s family of apps grew 4% to 2.93 billion, down from the 11% increase it posted the year prior. That’s down from the 6% growth rate it posted in the year-ago quarter. Meta reported having 2.96 billion monthly active users on its core Facebook app at the end of the quarter, up 2% year-over-year. Meta CFO David Wehner said on a call with analysts following the report that the average price per ad across Meta’s platforms fell 18% during the quarter.Īt the same time, Meta’s user growth is slowing amid heightened competition from rivals like TikTok. Tech companies like Google and Snap have also seen hits to their ad revenues. Meta’s stock fell almost 17% in after-hours trading Wednesday following the results.ĭemand for online advertising has declined in recent months amid rising inflation and fears of a looming recession. “We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company,” Mark Zuckerberg, Meta’s founder and CEO, said in a statement. The company reported net income of nearly $4.4 billion - less than half the amount it made during the same period in the prior year and below analysts’ projections. The Facebook parent company posted its first-ever quarterly revenue decline during the June quarter. (FB) posted revenue of $27.7 billion, down 4% year-over-year and slightly above Wall Street analysts’ expectations. Meta on Wednesday posted the second quarterly revenue decline in its history since going public and warned that it is making “significant changes” aimed at cutting costs ahead of 2023, as it confronts an economic downturn that is hitting its core online advertising business.įor the three months ended in September, Meta
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