Even as the company was battered by scandals over privacy and misinformation, its sales continued to grow.
It's no longer possible.
Meta reported a 1 percent decline in revenue from the previous year. It was the first time that the social media giant's revenue had fallen since it went public a decade ago as it faces increased regulatory scrutiny and a turbulent economy while trying to build a new frontier of digital communication
Revenue for the second quarter was down from a year ago. The profit was down from a year ago. Wall Street analysts had predicted profits of $7.06 billion on revenue of $28.9 billion.
Meta was sued by the FTC over a deal to buy a virtual reality company called Within. The Metaverse is a combination of virtual and augmented realities that will be bound by commerce and online relationships and was the focus of the lawsuit.
As recently as last year, Meta's revenue was growing at a rate of 28 percent. The company's most recent financial results were lackluster due to weaker demand for digital advertising.
Mr. Facebook said in an earnings call that the digital advertising business would be impacted by an economic downturn. It seems worse than a quarter ago.
The slowing global economy has led to a reduction in demand for advertising by online companies. The strength of the U.S. dollar has hurt companies when it comes to global sales.
The pain is likely to continue. The weak advertising demand environment is expected to continue for the current quarter. He expects to get more done with fewer resources.
Meta is facing its own set of challenges. Apple made privacy related changes last year that made it difficult for Meta to measure and deliver its advertising on Apple-made mobile devices. Most of Meta's advertising revenue comes from phones.
TikTok is a Chinese-owned video app that has captured the attention of more than one billion people in just a few years. Changes have been made to Facebook, as well as to the company's products, in order to mimic TikTok's offerings.
Mr. Facebook has spent a lot of money on his vision for the metaverse. The endeavor will be costly and may take years to come to fruition according to the man. Some investors aren't sure if the investments will pay off in the long run.
There were some positives in the report. The company said its daily active people for its family of apps increased in the last year. Analysts expected the company to lose visitors. User growth within the United States was seen by some as being saturated.
The Reels video product, which is similar to TikTok's video offering, is one area of Meta's business that is driving growth and engagement. More people are using the service because of the investments in artificial intelligence recommendations.
The chief strategy officer is a new position that will oversee strategy and corporate development. The vice president of finance at Meta will become the CFO.
In a post to his Facebook page, Mr. The areas will benefit from a more disciplined strategy process.
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