After Google, Meta also released the data of its latest quarterly, revealing how there is a recovery in user growth, even if the financial data are not doing well and the Reality Labs division continues to lose. Good news from the Reels.
Meta also joined the quarterly waltz, commenting on the data of the first fiscal quarter of its 2022, while offering various food for thought and anticipations on future initiatives.
According to reports from CNBC, total revenue reached $ 27.91 billion, up 7% year-on-year, but down 14% from the previous quarter, also disappointing analysts’ expectations ($ 28.2 billion. ). Things are no better in terms of net income, at 7.465 billion, down 21% year-on-year and 27 compared to the previous quarter, and earnings per share of $ 2.72, down 18. % on an annual basis and 26% compared to Q4 of 2021.
The Reality Labs division also continues to lose and, after the over 10 billion dollars invested last year, in the first quarter of 2022 it has already lost 2.96 billion dollars, due not only to its size (about 17,000 employees) but also to its investments which, by the end of the year, should lead to the debut of the Cambria premium viewer, dedicated to work use cases, to replace the laptop, which should also include the tracking of eyes and face so that the expressions in reality are perceived by those who try to socialize in the Metaverse. Again due to investments in this sector, but also due to the decline in advertising revenue, overall profitability will not grow in 2022: on the other hand, when the products of this division should be widely distributed, it will be possible to witness an “exciting 2030” with ad hoc products that will offer “a great contribution to the company’s revenue or profits”.
Among the other data provided, there were those on videos, which on Facebook represent 70% of the time spent on social media, with good performances also for the Reels who, however, are definitely great, alone, on Instagram. where they were first introduced, and where they total 20% of the time spent on the platform by users, even if their monetization is still not going very well for now, as the ad system in this format is still in its infancy.
However, the numbers relating to users are fine. Meta has announced that it has recovered the daily active users lost in the previous quarter, bringing them to 2.87 billion, with a + 6% on an annual basis, and to have also obtained a growth in monthly active users, which from the previous quarter to the current one they have gone from 2,912 billion to 2,936 billion. This was enough for the Menlo Park company to be able to obtain an increase in the share value of 19% in after-hours trading.