Facebook user numbers bounced back last quarter, but metaverse business lost another $2.9...

midian182

Posts: 8,034   +89
Staff member
What just happened? Facebook has seen its number of daily active users (DAUs) increase in Q1 2022 after experiencing its first-ever decline a quarter earlier, helping push its shares up 19%. But the AR and VR division (Reality Labs), an important part of its metaverse plans, lost $2.96 billion, adding to the $10.2 billion loss it recorded throughout last year.

It was a mixed bag of first-quarter earnings results for Meta. Facebook DAUs, which had fallen from 1.93 billion to 1.92 billion in Q4 2021, were up to 1.96 billion in Q1 2022, beating Wall Street estimates of 1.95 billion. But the company's total quarterly revenue of $27.91 billion missed analysts' estimates of $28.20 billion, a 7% year-over-year growth that marks the smallest since Facebook went public a decade ago and 21% lower than a year earlier.

Meta's combined businesses, including Facebook, Instagram, and WhatsApp, saw DAUs increase 6% YoY to 2.87 billion, or around 36% of the world's population. But net income from its family of apps was down 13% YoY to $11.48 billion.

"More people use our services today than ever before, and I'm proud of how our products are serving people around the world," said Meta CEO Mark Zuckerberg.

Meta's vision for the metaverse is a big part of its plans, hence the name change last year, but it is one that will take a lot of time and money. Reality Labs' $2.96 billion loss is over one billion dollars more than the $1.83 billion it lost a year ago. Zuckerberg insisted, however, that the project would pay off by the end of the decade. "Primarily this is laying the groundwork for what I would expect to be a very exciting 2030," he said, though not all Meta employees are as enthusiastic about the metaverse as their leader.

The next quarter isn't expected to be a good one for Meta. Russia's invasion of Ukraine and rising inflation are expected to result in monthly active user numbers being flat or declining, while revenue is predicted to be between $28 billion and $30 billion, lower than analysts' estimates of $30.6 billion.

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George Keech

Posts: 219   +392
Im not a betting man. but I think the "metaverse" will be just as much as a non thing then as now.

I predict (or maybe hope) people are getting drained by social media and online interactions and are hitting a limit of how much they can take. a bit like book sale, a lot have gone digital but there are still many people - me included that just love to read a physical book.
 

QuantumPhysics

Posts: 6,308   +7,248
We need a Facebook alternative.
I'd like to see one where you can have separate friends lists.
I have one Facebook page for family and one for all these anonymous people online. Problem is, if you get into political arguments and the lib-tards block you, you can't use either account to post until the block ends - unless you sign in with completely separate devices.

I'd bet most of Facebook's accounts are clones/fakes.
 

Inthenstus

Posts: 112   +143
Stop charging content creators so much and maybe I’ll hop onboard Horizon World. Also remove any ties to Facebook.
 

PEnnn

Posts: 806   +945
Of course the number of users will bounce back.

There is a new sucker born every day after all.
 

Watzupken

Posts: 644   +526
It’s funny people quote some random year and claim that something will be successful then. Fact is that they are just guessing. It is like saying we will be independent of using fossil fuel in 2050. I am not even sure we will make it to 2023, and yet people assume life will continue as usual.