“We’re putting increased energy and focus around our key company priorities that unlock both near and long term opportunities for Meta,” said CEO Mark Zuckerberg.
Meta Platforms (META) posted weaker-than-expected second quarter earnings Wednesday, as well as its first revenue decline since going public in 2012, while taking another $2.8 billion loss in its developing metaverse division.
The Facebook parent said profits for the three months ending in June were pegged at $2.46, down 31% from the same period last year and firmly behind the Street consensus forecast of $2.59 per share.
Group revenues, Meta said, fell 3% to $28.82 billion, nearly all of it coming from the new ‘Family of Apps’ division the company created last year, missing analysts’ estimates of a $28.95 billion tally. Ad impressions rose 15%, Meta said.
Reality Labs, the division that will house the company’s metaverse plans, generated revenues of $452 million, but lost another $2.8 billion for the quarter after first quarter loss of $2.9 billion.
Looking into the currently quarter, Meta said it sees revenues in the region of $26.0 billion to $28.5 billion, again falling shy of the Street consensus of around $30.3 billion.
“It was good to see positive trajectory on our engagement trends this quarter coming from products like Reels and our investments in AI,” said CEO Mark Zuckerberg. “We’re putting increased energy and focus around our key company priorities that unlock both near and long term opportunities for Meta and the people and businesses that use our services.”
Meta Platform shares were marked 3.7% lower in after-hours trading immediately following the earnings release to indicate a Thursday opening bell price of $163.33 each.
Monthly active users across Meta’s ‘Family of Apps’ was tabbed at 2.93 million, just shy of Street forecasts of 2.95 billion, while daily active users hit a modestly better-than-expected 1.97 billion.
The quarter’s biggest highlight, however, was likely the impending departure of longtime chief operating officer Sheryl Sandberg, who will step down later this year.
Sandberg, who is widely credited with navigating Facebook’s transition from a brand value to ad-generated revenue, served under CEO Mark Zuckerberg for fourteen years and was, in many respects, the professional public face of the social media giant.
She’s continue to serve on the Meta board, she said, after departing her role in the fall, and hinted at a move in global philanthropy following her tenure at Facebook.
Earlier Wednesday, the U.S. Federal Trade Commission asked a court to block the group’s proposed acquisition of virtual reality content maker Within Unlimited, arguing it would effectively create a monopoly in the market for virtual reality-dedicated fitness apps.
