Meta earnings crash — RT Business News

Facebook parent company sees slowest revenue growth since 2012 IPO

Facebook’s parent company, Meta Platforms, reported a 21% drop in profits for the first quarter of this year, the company’s slowest revenue growth since its IPO a decade ago.

According to first-quarter 2022 results released Wednesday, the company’s profit was $7.5 billion, down from $9.5 billion in the same period last year. Operating profit fell by 28%. Total revenue, however, rose 7% to $27.9 billion.

The results follow Meta’s dismal financial report for the fourth quarter and full year 2021 released in February, when the company also saw an 8% decline in profits and slowing user growth. The numbers sent Meta’s stock plummeting more than 20% and its market value plummeting more than $230 billion in the biggest one-day crash in the company’s history.

The losses in the two quarters are the company’s first consecutive declines in earnings in more than a decade, with the rate of growth now below levels seen since its IPO in 2012.

Meta Founder and CEO Mark Zuckerberg, however, remained optimistic, saying that “We made progress this quarter on a number of key business priorities and we remain confident in the opportunities and long-term growth that our product roadmap will unlock.”

The social media network reported a slight increase in the number of active users logging in daily and monthly, which helped support revenue, with Zuckerberg saying he was “proud of how our products serve people around the world.”

The company recently changed course and bet on virtual reality with the launch of the Metaverse, an online video game that allows people to build and explore virtual worlds. Meta started spending a lot on related products like virtual reality glasses. However, augmented reality has yet to show strong returns. Earlier this month, Meta Platforms announced that it will charge metaverse creators approximately 47.5% on sales of digital assets and experiences made within the company’s Horizon Worlds virtual reality platform. .

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