Meta posts DECLINE in revenue for the first time in its history: Facebook parent warns sales will fall further due to ‘weak advertising demand’
- Facebook parent Meta reported quarterly revenue of $28.82B on Wednesday
- It is the first time sales have dropped on an annual basis since IPO in 2012
- Company also warned that it expects revenue to fall further this quarter
- Executives blamed declining revenue on ‘weak advertising demand’
Meta on Wednesday reported revenue of $28.82 billion for the second quarter, a 1 percent decline from a year ago and less than Wall Street analysts had expected.
The company also said it expects third-quarter revenue to fall further, to between $26 billion and $28.5 billion, saying that ‘a continuation of the weak advertising demand’ would weigh on sales.
Analysts were expecting revenue of $30.52 billion for the current quarter, according to IBES data from Refinitiv.
The social media giant also reported profits of $2.46 per share, less than the consensus expectation of $2.59 per share, according to Refinitiv.
Facebook’s parent company Meta has reported an annual decline in quarterly revenue for the first time in the company’s history. Pictured: Meta CEO Mark Zuckerberg
Shares of Meta dropped as much as 6 percent in extended trading immediately following the announcement.
In a statement, CEO Mark Zuckerberg highlighted some of his favorite initiatives, including Facebook’s TikTok challenger Reels and artificial intelligence.
‘It was good to see positive trajectory on our engagement trends this quarter coming from products like Reels and our investments in AI,’ said Zuckerberg.
‘We’re putting increased energy and focus around our key company priorities that unlock both near and long term opportunities for Meta and the people and businesses that use our services.’
Developing story, more to follow.