Facebook-parent posts first revenue decline as a public company
Facebook's parent company has a brick and mortar store. See what's insideReplayMore Videos ... (16 Videos)Facebook's parent company has a brick and mortar store. See what's insideAre these building blocks a solution to the plastic problem?This animatronic Baby Yoda puppet looks like it's aliveWatch chess-playing robot break boy's fingerPeople are posting their cats' reactions to this new video game Amazon's big headache: Fake reviewsTech giant's new robotaxi with removable steering wheel not legal yet in ChinaTwitter lawyer: No 'exit ramp' for Elon Musk out of takeover dealMetaverse expert predicts the future of the internetHow these satellites are helping fight methane pollutionHasbro 3D-prints your face on its action figure toysSee the first images taken by the James Webb Space TelescopeArt critic Jerry Saltz on DALL-E 2: 'This is pretty crapola illustration'This is how data collected from fertility apps could be used to prosecute abortion See a simulation of AI technology being used to prevent a mass shootingAmazon introduces new warehouse robot, says it's not replacing human workersNew York (CNN Business)Facebook is in decline.
Meta (FB), Facebook's parent company, reported revenue of $28.8 billion for the three months ending in June, a 1% drop from the prior-year quarter and its first ever year-over-year revenue decline since going public in 2012. The company's profit fell far more sharply. Net income during the quarter declined 36% year-over-year to nearly $6.7 billion, a huge reversal from the year prior when its profit doubled.The number of monthly active users on the Facebook app also declined slightly from the first quarter of 2022, from 2.936 billion to 2.934 billion, another bad sign for the company's core platform. Meta's earnings report follows weeks of ominous reports that the company would return to a stricter performance review process and look to increase worker productivity as it seeks to weather a period of slowing growth and tough competition from newer rivals such as TikTok. Those challenges are coinciding with larger macroeconomic pressures, including rising inflation and recession fears. Read MoreMeta CEO Mark Zuckerberg said earlier this month that the company would cut plans to hire engineers by at least 30% this year, telling employees in a Q&A that "this might be one of the worst downturns that we've seen in recent history," according to a Reuters report. In its earnings report Wednesday, the company said it has "reduced our hiring and overall expense growth plans this year to account for the more challenging operating environment while continuing to direct resources toward our company priorities."Still, the company's decline is expected to continue into next quarter. Meta said it expects revenue for the current quarter to be between $26 billion and $28.5 billion. Even at the high end, that would mark a 1.76% decline from the prior year.Meta pointed to lower revenue from its VR unit, Reality Labs, and ongoing weakness in online advertising demand caused by economic uncertainty as factors behind the guidance. Other tech companies, including Twitter and Snap, are also confronting tightened advertiser budgets amid the economic downturn. Meta shares fell as much as 5% in after-hours trading Wednesday following the earnings report before rebounding somewhat.Click Here To Get Funded!