Meta: First Quarter Revenue Drop, Third Quarter Forecast Below Expectations

Meta: First Quarter Revenue Drop, Third Quarter Forecast Below Expectations

(Reuters) – Meta Platforms issued a gloomy outlook on Wednesday after reporting a decline in quarterly revenue for the first time amid the threat of a global recession and increased competitive pressure on its advertising sales.

The title of the parent company of Facebook fell about 1.4% in post-closing trading on Wall Street.

Meta said it will expect July-September revenue of between $26 billion and $28.5 billion, while analysts on average had expected $30.52 billion, according to IBES data. from Refinitiv.

In the second quarter, the turnover of the group, which comes almost exclusively from advertising sales, declined by 1% to 28.8 billion dollars, against 29.1 billion dollars a year earlier.

This is an amount slightly lower than Wall Street’s expectations, which stood at $28.9 billion according to Refinitiv data.

As for the number of Facebook users, the data is mixed. The number of monthly active users came in at 2.93 billion, slightly below expectations, while the number of daily active users of the social network beat the consensus in the second quarter, with 1.97 billion.

Like many US companies, Meta has seen its revenue impacted by the dollar exchange rate, as overseas sales have yielded less.

The tech giant said it expects a “counter-sell” of 6% for its third-quarter revenue, based on current exchange rates.

The results of Meta also illustrate the difficulties of social networks in terms of advertising sales, impacted more than search engines by the budgets revised downwards by advertisers.

Over the April-June period, the group’s operating margin fell by 29%, against 43%, due to soaring costs and falling revenues.

(Report Katie Paul and Nivedita Balu; French version Jean Terzian)

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