Facebook parent Meta reported its first-ever revenue decline in the June 2022 quarter (Q2 2022). According to its second quarter 2022 results report, total revenue decreased by 1% year on year to $28.8 billion, and the company anticipates a further revenue decrease in the third quarter (July to September) to around $26 billion. Meta’s overall profit fell 36% to $6.7 billion in the most recent quarter. Reality Labs, Meta’s division that works on Mark Zuckerberg’s metaverse fantasies, lost nearly $2.8 billion in the third quarter.
The revenue drop is significant because Meta (formerly Facebook) sailed through multiple COVID-19 waves when the world was fearful of economic uncertainty. The company reported total revenue of $18.6 billion in Q2 2022, compared to $29 billion in the same quarter last year. In both 2020 and 2021, the company’s revenue increased on an annual basis. Despite falling revenue, Meta said it was able to increase its daily active users (DAU) margin by 3% year on year. In June, the average DAU was 1.97 billion. It is still a positive sign for the company, as analysts predicted a further drop after DAU fell for the first time last year.
