![]() ![]() For the first nine months of the year, Meta lost $9.4 billion on its metaverse unit, Reality Labs. The company is making what amounts to a wildly expensive bet on its ability to transform into a virtual reality behemoth and whether that technology can power the next phase in Meta's growth.Īlthough such strategic pivots can take years for big companies to execute - as it did for IBM and Microsoft as they morphed from selling hardware to software - the early returns for Meta have been grim. She said she expects the regulatory environment to continue to be a "real challenge" for the whole industry.On a Wednesday conference call to discuss Meta's latest earnings, Zuckerberg told investors he is "pretty confident this is going in a good direction." Sandberg said that though finalized text of the DMA has not been made public, it was generally in line with expectations. Meta is also expecting to face a tougher regulatory environment moving forward with Europe coming to an agreement on the Digital Markets Act, which aims to rein in the power of digital gatekeepers. "We think while these times are challenging, over the long run, we do have a very strong competitive advantage when you look across the opportunities advertisers have to advertise both offline and online," Sandberg said. Google-owned YouTube grew just 14% in the first quarter, far below the 25% analysts had expected.ĬFO Dave Wehner said that because of the loss of users in Russia, where the country's media regulator restricted its services, the company expects a sequential decline in MAUs in Europe in the next quarter, which will more fully reflect the result of that government action.ĭigital ads could also be impacted by inflation and Apple's recent privacy changes on iPhone operating systems, which Wehner previously predicted would result in a $10 billion revenue hit in 2022, though he acknowledged that figure was an estimate.Ĭhief Operating Officer Sheryl Sandberg told analysts on Wednesday's earnings call that they've so far "been able to close a good part of the underreporting gap and share that with advertisers," but it will take more time to make up for the rest. ![]() Snap CEO Evan Spiegel called the first quarter "more challenging than we had expected." The company said some advertisers had paused advertising campaigns after Russia's invasion of Ukraine in February. Other social media companies similarly pointed to macroeconomic factors impacting their advertising revenue. It expects most of that expense growth to be driven by its family of apps segment, followed by Reality Labs. Reality Labs lost $2.96 billion in the period compared with a loss of $1.83 billion in the first quarter of 2021.įacebook lowered its total expenses guidance for 2022 to somewhere between $87 billion and $92 billion, below its earlier estimate of $90 billion to $95 billion. In the family of apps business, net income dropped 13% from a year earlier to $11.48 billion. The remaining $695 million came from Reality Labs, the part of the company that's attempting to build products for the metaverse. Personal Loans for 670 Credit Score or Lowerįacebook changed its name to Meta in October, reflecting CEO Mark Zuckerberg's effort to push the company towards a future of working, playing and studying in a virtual world.įacebook's family of apps, including the core app, Instagram and WhatsApp, accounted for 97.5% of revenue in the quarter. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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