Facebook Has Reported a Decline in Earnings For the First Time in A Decade

The ten-year trend of uninterrupted revenue growth for Facebook has ended.

The social network announced a 1% reduction in sales for the second quarter, dropping to $28.8 billion, and forecast that growth in the third quarter might fall even more. This was the social network’s first-ever annual revenue decline. Its parent business, Meta, had a 36 percent decline in overall profit to $6.7 billion. The section of Reality Labs, which is in charge of the Metaverse, lost $2.8 billion during the quarter.

Although Meta’s income is falling, it was nevertheless able to increase Facebook’s daily users by 3% to 1.97 billion, reversing a concerning user dip it had noticed a few quarters earlier. According to Meta, Facebook, Messenger, Instagram, and WhatsApp are now used daily by 2.88 billion people, up 4% over the previous year.

Thanks partly to a rise in the viewing of videos, Zuckerberg claimed that the business has observed “engagement trends” on Facebook that were “stronger than we anticipated.” Reels, the business’s short-form video format targeted at TikTok, is earning more quickly than stories were when the company adopted that format from Snapchat a few years ago, according to him. Reels are the firm’s top priority right now, even though they aren’t currently generating much income. In the long run, the company expects Reels to be a revenue generator.

According to Zuckerberg, the corporation is still committed to facilitating connections between friends and family. He said that social media users find intriguing stuff in their feeds and then message it to friends.

Muhammad Zuhair
Passionate about technology and gaming content, Zuhair focuses on analysing information and then presenting it to the audience.