Facebook loses 1% of its revenue in the second quarter of 2022
On July 27, 2022, Meta, the parent company of Facebook, Instagram, and WhatsApp, published its quarterly report reporting its results for the second half of 2022. The report thus reveals that the Meta group recorded a 1% decrease in its revenues in 1 year. Indeed, it posted 28.8 million dollars in revenue for this Q2 2022, compared to 29.1 million dollars in Q2 2021. If this drop may seem ridiculous, the fact remains that it is historic for the band. “We seem to have entered an economic recession which will have a large impact on the digital advertising market. It is always difficult to predict the depth or duration of these cycles, but I would say the situation looks worse than three months ago”, said Mark Zuckerberg, boss of Meta. He adds : “I expect us to do more with fewer resources”.
Another important figure: the parent company of Facebook recorded a significant drop of 36% in net profit compared to 2021. Indeed, the report reveals that the Meta group recorded a net profit of 6.7 billion dollars in Q2 2022, against $10.4 billion in Q2 2021.
A loss of 2 million monthly users
In the last quarter of 2021, the Meta group recorded a loss of 1 million daily active users. In the second quarter of 2022, the report shows that Facebook had 1.968 billion daily active users, compared to 1.908 billion users in Q2 2021. However, the social network recorded a loss of 2 million monthly users on its platform between the 1st and the 2nd quarter of 2022. Thus, this new report shows that the number of monthly users increased from 2.936 billion to 2.934 billion between the first two quarters of 2022.
The Meta group bets on Instagram Reels and the metaverse
In the speech to comment on the findings of the report, Mark Zuckerberg explains: “To understand our objectives, it is important to keep in mind that there are two major technologies on which we rely in our business. The first is AI. The second, longer term, is the emergence of the metaverse.. As the boss of the Meta group explains, this also includes Reels, Instagram’s new flagship format to compete with TikTok.
One of the major transformations in our business right now is that social feeds are no longer driven by the users and accounts you follow to be increasingly driven by AI, to recommend content that you will find interesting on Facebook or Instagram. Social content from the people you follow will remain an important part of the experience, but increasingly we will also be able to complement this with other great content from our platforms. Reels are part of this trend and focus on the growth of short video, claims the boss of Meta.
Ads that may not please users, many of whom criticize Instagram’s new news feed and in particular the number of content recommendations that are too invasive.