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Facebook Revenue Drops For 1st Time In Its History.
Facebook has reported a loss in revenue in the June quarter for the 1st time since going public in 2007, predicting that growth in the 3rd quarter could fall even more.
Facebook reported a 1% drop in revenue to $28.8 billion, a 1% decrease from $29.07 billion in the 2nd quarter of 2021
The shares dropped 3.8% in extended trading late on Wednesday.
Meta’s profit fell 36% to $6.7 billion in the quarter.
The Reality Labs division behind the Metaverse dream project lost $2.8 billion in the April-June period,
“It was good to see a positive trajectory on our engagement trends this quarter coming from products like Reels and our investments in AI,” said Mark Zuckerberg, Meta founder, and CEO.
“We’re putting increased energy and focus around our key company priorities that unlock both near and long-term opportunities for Meta and the people and businesses that use our services,” he announced.
Outgoing COO Sheryl Sandberg blamed the revenue loss on the decreasing value of the Euro.
“Foreign exchange trends had a significant impact in Q2, particularly the depreciation of the Euro relative to the dollar,” Sandberg told analysts during the earnings call.
“On a constant currency basis, we would have seen 3% revenue growth yearly.”
The company expects the 3rd quarter of 2022 total revenue to be $26-28.5 billion.
Meta now has 83,553 employees, an increase of 32 % year-over-year.
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