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Meta Platforms Inc. reported $27.9 billion in revenue for the first quarter, falling within the low end of its $27–$29 billion revenue projections, and saw a 21 percent year-over-year drop in net income as growth has continued to slow into the new year.
Meta’s “family of apps,” which includes Facebook, Instagram, Messenger and WhatsApp, accounted for the majority of the company’s revenue at $27.2 billion, which primarily came from advertising. Daily active users on Facebook averaged 1.96 billion for the quarter ending in March.
The company previously reported an earnings miss in Q4 that resulted in a record $230 billion loss in market value as Meta’s stock dropped more than 25 percent in the day following its quarterly earnings report. At the time, Meta CEO Mark Zuckerberg warned that continued “macroeconomic challenges” would continue to hinder its ad business.
Since changing its name from Facebook to Meta last October, the company has committed more of its resources toward its AR and VR ambitions. Zuckerberg has previously pledged $10 billion toward the metaverse and said that Meta will not be profitable “anytime in the near future” because of that shift in focus.
Reality Labs, Meta’s AR and VR division, reported $695 million in revenue during Q1 but was responsible for a $2.9 billion income loss, according to the company’s earnings report.
For the second quarter, Meta said it expects revenue to range between $28–$30 billion to reflect the continued economic challenges — such as Apple’s iOS privacy changes and the ongoing war in Ukraine — to the company’s ad business. Monthly active users are also expected to see a decline in Q2 due the loss of service in Russia.
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