The revenue of Facebook has come down in the very first instance in history and may continue to fall in the near future. Facebook has announced a loss in its revenue for its June quarter, for the first time in the period since it went public in 2007. The company is predicting that the growth rate in the third quarter will likely drop even more. Facebook reported a 1 percent cent decline in revenue, up to $28.8 billion, which was a 1 percent decrease of $29.07 billion during the 2nd quarter in 2021. Overall, Meta's profits fell 36 percent to $6.7 billion during the quarter.
The Reality Labs division behind the Metaverse project has lost $2.8 billion during the April-June period "It was encouraging to see positive trends in our engagement rates this quarter due to our products such as Reels as well as our investment into AI," said Mark Zuckerberg, Meta founder and CEO. "We're placing more effort and attention on our main goals for the company that will unlock future and near-term opportunities for Meta and the individuals and companies who use the services we offer," the CEO announced.
The COO who resigned has been Sheryl Sandberg blamed loss of revenue on the declining price of the Euro. "Foreign exchange rates were a major factor in Q2 and in particular, the decrease in the value of the Euro in comparison with the Dollar," Sandberg told analysts. "On the basis of constant currency we would have seen an increase of 3% in revenue year-over-year." The company is expecting third quarter 2022's total revenues to be between around $26-28.5 billion.
"This outlook is indicative of the sluggish demand for advertising conditions we faced during the second quarter which we believe is affected by macroeconomic uncertainty that is broader," Meta informed.
Facebook has reported the number of daily active users (DAUs) as 1.97 billion in the month of June the month, which was an increase of 3 percent over the previous year. In the month of March, monthly Active Users (MAUs) reached 2.93 billion, which is an increase of 1 percent.
Meta currently has 83,553 employees which is which is an increase of 32 percent year-on-year. Meta announced that starting on November 1, the CFO David Wehner will take on the new position of Meta's Chief Strategy Officer who will be in charge of the company's strategy as well as corporate development. Susan Li, Meta's current Vice President of Finance She will be promoted to the position of Meta's Chief Financial Officer.