Meta, Facebooks Parent Company, Reports Slowest Revenue Growth Since IPO
Meta, the social giant formerly known as Facebook, beat Wall Street estimates for earnings in the first quarter of 2022 — but fell short on the revenue front — as it reported its slowest revenue growth as a public company.
For Q1, Meta reported revenue of $27.9 billion, up 7% year over year. That’s the company’s lowest topline growth since its IPO in 2012. It posted net income of $7.47 billion, or $2.72 per share, down 21% compared with the year-ago period.
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Facebook daily active users averaged 1.96 billion for March 2022, up 4% year-over-year, and up slightly from the prior quarter (1.93 billion).
Wall Street analyst consensus estimates were for Meta to post Q1 revenue of $28.2 billion in EPS of $2.56 per share, according to financial data provider Refinitiv. Meta was expected to report 1.95 billion daily users for the quarter, per StreetAccount.
“We made progress this quarter across a number of key company priorities and we remain confident in the long term opportunities and growth that our product roadmap will unlock,” Mark Zuckerberg, Meta co-founder and CEO, said in announcing the results. “More people use our services today than ever before, and I’m proud of how our products are serving people around the world.”
Meta said expects second quarter 2022 total revenue to be in the range of $28 billion-30 billion, an outlook that “reflects a continuation of the trends impacting revenue growth in the first quarter, including softness in the back half of the first quarter that coincided with the war in Ukraine.”
More to come.
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