Facebook announces revenue drop for the first time in its history

After a decade of uninterrupted growth, Facebook’s profits have just suffered a slight decline. Moreover, in the third quarter of 2022, the phenomenon could get even worse…

For the first time since its launch in 2014, Mark Zuckerberg’s social network goes into recession. In the second quarter of 2022, the company lost 1% of its profits, which now drops to $28.8 billion. The company itself indicated that Facebook’s growth could fall further in the third quarter of 2022. Moreover, the overall profit of its parent company, Meta, fell 36% to $6.7 billion. The Reality Labs division, responsible for building the metaverse, lost $2.8 billion in the quarter.

Facebook - Credit: META
Facebook – Credit: META

According to the company, the recent addition of the “Ask app not to track” function is to blame. In effect, this feature applied to iPhones has made its ads much less effective. It would have cost Meta $10 billion in advertising revenue last year alone.

Facebook: Tiktok in the viewfinder

To make up for its losses, Facebook is looking to catch up with Tiktok, which became the world’s most downloaded app last year, overtaking Mark Zuckerberg’s social network. Meta is therefore restructuring Facebook and Instagram to emphasize videos and short messages.

Good news, however: even though Meta’s turnover is down, the company managed to grow the number of daily users. Indeed, it increased by 3% to reach 1.97 billion. Meta has also indicated that 2.88 billion people use its suite of social applications – Facebook, Messenger, Instagram and WhatsApp – every day. an increase of 4% compared to last year.

According to Mark Zuckerberg, the company will have to make a certain number of efforts in order to succeed. The founder of Facebook thus declares: “This is a period that requires more intensity, and I expect us to do more with fewer resources […] I think we will get through this period being a stronger and more disciplined organization..”

Read also >> Facebook: how to disable video autoplay

Source : theverge

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