Facebook parent records slowest revenue growth in a decade

Meta’s quarterly daily active user numbers were above Wall Street estimates

Facebook parent Meta Platforms on Wednesday reported quarterly daily active users above Wall Street estimates, even as it recorded its slowest revenue growth in a decade.

Shares of the company rose 13 per cent in extended trading. Meta has lost about half of its value since the start of the year, after a dismal February earnings when it reported a decline in Facebook’s daily active users for the first time and forecast a gloomy quarter, blaming factors including Apple’s privacy changes and increased competition from platforms like ByteDance’s TikTok.

Daily active users, a key metric for advertisers that indicates activity on the platform, were 1.96 billion, slightly higher that the estimate of 1.95 billion, according to IBES data from Refinitiv.

Interesting first quarter growth numbers…

Posted by Mark Hansen on Wednesday, May 4, 2022

Meta forecast second-quarter revenue between $28 billion (€26.5 billion) and $30 billion. Analysts on average were expecting current-quarter revenue of $30.63 billion.

Total revenue, the bulk of which comes from ad sales, rose 7 per cent to $27.91 billion in the first quarter, but missed analysts’ estimates of $28.20 billion, according to IBES data from Refinitiv. - Reuters