Meta’s revenue down, a first for Facebook’s parent company

On July 29, 2022, by François Lapierre

This is a first and it is worrying for Meta, Facebook’s parent company: for the first time in the company’s history, sales fell in the second quarter.


Declining turnover


Meta's revenue down, a first for Facebook's parent company
Meta’s second-quarter revenue was $28.8 billion, down 1% from a year ago. It doesn’t seem like much, but it’s a first for the group behind which we find Facebook, Instagram and WhatsApp. Net profit also fell, much more frankly, by 36% to 6.7 billion.

The company had taken care to warn that the results were not going to be good for the spring. The various entities of Meta also lost 2 million monthly active users, on the other hand on a daily basis the group reached 1.97 billion active users. As of June 30, the social network and its various messaging services had 3.65 billion users, half of the planet in other words.


Competition from TikTok

Mark Zuckerberg, founder and boss of Meta, admitted during a conference with analysts that the situation was worse than three months ago. To deal with this, the group decided to slow staff growth for the rest of the year. Meta has 84,000 employees worldwide, which is 32% more than a year ago. Investments will also be fewer.

These results were eagerly awaited by the stock market, because since the beginning of February the Meta share has fallen by half its value.. Investors are concerned that monetization through advertising will no longer be as effective, while Facebook faces increasingly fierce and agile competition, particularly from TikTok. Instagram would also like to turn into a clone of TikTok, a change that is not to the liking of all users.




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