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Facebook’s revenue is falling for the first time ever and could fall further in the future

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Facebook has reported a loss of revenue in the June quarter for the first time since its IPO in 2007, and forecasts growth could decline further in the third quarter.



Facebook reported a 1 percent drop in revenue to $28.8 billion, down 1 percent from $29.07 billion in the second quarter of 2021.

The stock fell 3.8 percent late in trading on Wednesday.

General, metaEarnings fell 36 percent in the quarter to $6.7 billion.

The Reality Labs division behind the metaverse dream project lost $2.8 billion in the April-June period,

“It was good to see a positive trajectory in our engagement trends this quarter, coming from products like Reels and our investments in AI,” said Mark ZuckerbergMeta founder and CEO.

“We are putting more energy and focus on our top business priorities that unlock both short and long-term opportunities for Meta and the people and businesses that use our services,” he announced.

Outgoing COO Sheryl Sandberg blames the loss of income on the depreciating value of the euro.

“Foreign currency trends had a significant impact in the second quarter, particularly the depreciation of the euro against the dollar,” Sandberg told analysts during the earnings call.

“At constant exchange rates, we would have seen revenue growth of 3% year over year.”

The company expects total revenue in the third quarter of 2022 to be between $26-28.5 billion.

“This outlook reflects a continuation of the weak ad demand environment we experienced during the second quarter, which we believe is driven by broader macroeconomic uncertainty,” Meta said.

Facebook reported an average of 1.97 billion daily active users (DAUs) for June, a 3 percent year-over-year increase.

Monthly active users (MAUs) were 2.93 billion, up 1 percent.

Meta now has 83,553 employees, an increase of 32 percent year-over-year.

The social network said that effective Nov. 1, current Chief Financial Officer David Wehner will take on a new role as Meta’s first Chief Strategy Officer, where he will oversee the company’s strategy and business development.

Susan Li, the current vice president of Meta van Financewill be promoted and serve as Chief Financial Officer of Meta.

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