Facebook-owner Meta posted a worse-than-expected loss in revenue and profit with weak outlook, noting a second consecutive quarter of year-over-year sales decline, sending its shares tumbling 3.8% during extended trading.
The company earned $2.46 per share on an adjusted basis to fail to reach analyst estimates of $2.59 per share, and revenue came to $28.82 billion, compared to expectations of $28.94 billion. As for user numbers, the number of daily active users was 1.97 billion, compared to expectations of 1.96. billion users.
The number of monthly active users at 2.93 billion users was also lower than the expectations of 2.94 billion users, and in a similar context, the average revenue per user was lower than analysts’ expectations, reaching $9.82 per user compared to expectations of $9.83.
Meta shares have lost about half their value since the beginning of the year so far, which has worried investors about the performance of the company’s core business in online advertising, and Facebook’s deteriorating results come after a crash wave that began last week in the shares of rival platforms such as Snap and Twitter. Read more [Poor Results on Twitter as It Blames Elon Musk].
CEO Mark Zuckerberg said the company will reduce staffing over the next year as it prepares to wrestle with an economic slowdown and a possible recession. To read more [Plans To Cut Hiring at Snap After Q2 Results].
The social media platform expects third-quarter revenue to range between $26-28.5 billion, well below the $30.5 billion average analyst forecast, and the company’s guidance can be considered that revenue will decline 2-11% compared to last year. Read more [COO Sandberg is Stepping Down from Meta Position] and [The Giant Facebook Announces First-Quarter Results].