Meta, formerly Facebook, has released its quarterly results and they are not good. For the first time in its history, the company founded by Mark Zuckerberg is experiencing a drop in turnover and profits. The golden age seems definitely over for the Californian company.
Meta has published its financial results for the second quarter of 2022. Unprecedentedly, turnover is down. From $28.8 billion, it is 1% lower compared to the same period in 2021. This is a blow for a company that has been growing steadily since its creation.
Moreover, net profits tumbled 36% compared to the same period last year, reaching “only” 6.7 billion dollars. Worrying results, even if Meta is still far, very far, from being in trouble.
Facebook is gaining fewer subscribers
The sinews of war for Meta is obviously the number of users, both on Facebook and Instagram. Currently, Facebook can boast to have 1.97 billion daily active users, 8 million more than in the previous quarter. A small improvement given the loss of users in 2021, even if the network seems to have reached its limits. If we count Facebook, WhatsApp, Instagram and Messenger, Meta has 3.65 billion users.
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The fact is that the end of exponential growth and the arrival of more popular competitors like Tik Tok greatly penalizes Meta. Fewer users means less targeted advertising. Facebook is now struggling to renew itself and attract young people. To this must be added constant monitoring of the network’s advertising practices, which have long been denounced. For its part, Instagram is gradually losing its aura, the network becoming less pleasant to use with feeds filled with advertisements or posts that are both unwanted and simply uninteresting.
Last nail in the coffin: the reputation of Meta which is not really to his advantage. The company has been singled out for several years for its management of user data and users are increasingly reluctant to come to the company’s platforms. Either way, Meta now faces the biggest challenge in its history as it attempts to raise the bar.