Tough Times For Meta As Profits Plunge 36% With Facebook Reporting Decline In Monthly Users

With a drastic change in worldwide economic conditions, Meta is certainly feeling the pressure. The company reported a decrease in monthly active users for its Facebook platform, not to mention a slowdown in terms of revenue too for its Q2 2022 earning reports.

While Facebook did manage to report a slight increase in the final quarter’s daily active users, this was solely seen in the Asian market. Common target regions that saw the greatest growth included areas like India and Indonesia.

However, there was a much worse decline in terms of the European market and one that the firm is yet to have seen in the recent past.

Obviously, the current conditions of the world have plenty to do with this, and a notable mention goes out to the ongoing war between Russia and Ukraine. Here is where the app continues to face a bucketload of restrictions, thanks to the Government’s censorship.

In case you didn’t know, Facebook’s user market in Russia comprises nearly 70 million people. And keeping facts and figures like such in mind, it’s definitely not a major surprise that the drop wasn’t worse than what the firm had experienced.

As far as the number of active users per month is concerned, that area deserves a special mention. The picture is pretty bad and the company ended up losing out on nearly two million user accounts throughout that period. Again, the biggest impact was seen across Europe.

Clearly, the ongoing Russian war has a lot to do with this change so we might be overthinking but the poor figures are definitely worth a notice.

Hence, it’s hard to really speak about what such stats mean in terms of so much uncertainty and how the current world conditions are impacting different markets.

Meanwhile, Meta continues to provide a rundown of its different apps and how many platforms like WhatsApp, Messenger, Instagram, and Facebook were used during this period.

The picture showed how Meta continues to grow, as figures did experience a slight increase.

Now again, the Russian war has to be blamed but the current situation isn’t getting any better and that just adds more pressure on Meta and other global markets that have to suffer the consequences.

As far as revenue is concerned, Meta managed to generate $28.8 billion but the expectations of the market were a little more than that figure.

Meta proved another slowdown with its advertising demand and that of course is linked to macroeconomic uncertainty around the globe. There has been an equal increase in sales of various hardware like VR headsets.

Again, a delay in production, uncertainty with shipping, and inflation all were included as common reasons. This coupled with the firm raising its prices for its Quest Headset must be seen as a big deal as the firm needs sales to make people more inclined toward its Metaverse shift.

But the biggest setback has to be the company’s final income, which is the funds left after all costs are deducted. And that totaled up to be the lowest that the organization has reported in the past two years.

This makes sense why Mark Zuckerberg is so keen on shrinking his workforce, with statements linked to justifying why so many staff members don’t need to be here.

The pressure is mounting and that’s why a number of projects have also been on hold, leading to their complete abandonment. This includes smartwatches, portable devices, and a few social audio endeavors as well.

Meta has a lot at stake and the risks are definitely plenty, not to mention the eagerness to take on board the Metaverse shift. Hence, Zuckerberg has a lot of quick thinking to do before it’s too late.
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