Meta (Facebook) revenues are down due to weak demand for ads

Meta has for the first time set a lower quarter books compared to a year earlier. The company recorded sales of 28.2 billion euros last quarter, one percent less than the same period in 2021. Meta expects another decline next quarter.

In total, revenue from the divested quarter decreased by $ 255 million. It is the first time that the company’s turnover is spinning, writes The Financial Times, among others. Instagram Instagram and Facebook facebook the decline is mainly due to Meta’s ‘family of apps’, which include Instagram and Facebook, for example. In the past quarter, revenues from that industry fell by an unsurpassed $ 400 million to $ 27.77 billion. Sales from Meta’s Reality Labs, the division that works on VR and AR headsets, among other things, rose from 305 million to 452 million dollars. The company’s net profit also fell 36 percent, to about $ 6.69 billion. This amounts to approximately 6.54 billion euros.

The company attributes the transformation, among other things, to a “weak” demand for advertising, which, according to Meta, can be attributed to the uncertain economic situation. In a teleconference with holders, COO Sheryl Sandberg says the average price per ad is expressed by fourteen percent with respect to 2021. The company is also reportedly still working on a strategy to deal with Apple’s privacy statements in iOS, which would cost the company $ 10 billion this year. At the same time, exchange rate trends would also have had an impact on sales, especially the depreciation of the euro against the dollar.

For the rest of this year, meta expects further declines. For the third quarter, for example, meta outlines an expected turnover of 26 to 28.5 billion dollars. Last year, meta achieved sales of $ 29 billion in that quarter. Those coming declines would even be condemned by a reduced demand for advertising.

Despite the transformation, meta managed to increase the number of daily Facebook users again by three percent, to 1.97 billion. In February, Facebook reported a drop in daily users for the first time. The company indicates that it is also currently working on customizing its platforms. Facebook Instagram Facebook Instagram Ceo tells holders that currently a total of 15 percent of all content people see on Facebook or Instagram comes from accounts they don’t follow. Next year, that percentage should double. This will make the platforms look more like TikTok, a platform that focuses on short videos and posts that are recommended to people.

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