Meta announced its first Facebook revenue decrease. The tech giant manufacturer confirmed this result on Wednesday, July 27.
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This photograph taken on October 28, 2021 shows the META logo on a laptop screen in Moscow as Facebook chief Mark Zuckerberg announced the parent company's name is being changed to "Meta."
Based on the details provided by Meta, the revenue it lost is more than $250,000.
In the second quarter of 2022, Meta was able to generate $28.82 billion, down from its recent financial gain of $29.07 billion.
This just shows that Meta is facing various issues to maintain its earnings. One of the problems it faces is Apple's "Ask App Not To Track" tech, which makes Facebook ads less effective.
Meta's First Facebook Revenue Decrease!
According to The New York Times' latest report, Facebook's sales always faced massive growth ever since the platform was launched back in 2004.
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Facebook CEO Mark Zuckerberg speaks about the new Facebook News feature at the Paley Center For Media on October 25, 2019 in New York City.
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However, because of numerous privacy, misinformation, and other problems, Meta's Facebook revenue is now declining.
Now, Meta's predictions show that it will experience another revenue decrease in the third quarter of 2022.
As of press time, the overall profit of the tech firm fell 36% to $6.7 billion.
On the other hand, Mark Zuckerberg's Reality Labs, the company working on Meta's metaverse, also lost $2.8 billion in 2022 Q2.
Although this is the case, Zuckerberg shared that he was encouraged by other businesses under his Meta company.
These include the Reels video product, as well as artificial intelligence recommendation algorithm investments.
Meta's Silver Lining
Although the sudden revenue decline is bad news for Meta, Facebook's daily user increase is still there as its silver lining.
With the tech manufacturer's efforts, the social media platform's daily users increased by 3% to 1.97 billion. Meta confirmed that more than 2 billion consumers are now using its online applications.
These include WhatsApp, Instagram, Messenger, and Facebook. Mark Zuckerberg also stated that they saw stronger engagement trends on Facebook.
Aside from this, the billionaire added that their Reels, Meta's short-form video format that aims to compete with TikTok, is also monetizing faster than Stories.
Because of this, the CEO is now expecting Reels to be one of their major revenue drivers.
"This is a period that demands more intensity, and I expect us to get more done with fewer resources. I think we're going to come through this period as a stronger and more disciplined organization," said Zuckerberg via The Verge.
Previously, the new Facebook Feeds feature was launched, allowing users to see posts in reverse chronological order.
On the other hand, Meta is now asking Facebook's Oversight Board if the platform's COVID-19 misinformation policies should be changed.
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Written by: Griffin Davis
