Meta, formerly the Facebook company, has remained one of the most spotlighted tech companies in the entire world thanks to the large amount of influence platforms like Facebook and Instagram have on the world of social media. The company has done quite well for itself off the backs of ad revenue, marketing, and monetization of its platform, but Meta is also in a highly transitional period as Zuckerberg and other Meta leadership focus on designing a metaverse ecosystem. Q2 2022 was a losing quarter for Meta on a few metrics, notably revenue and earnings-per-share (EPS), and the company attributes these issues to current difficulties in advertisement and global economic issues.
Meta shared its Q2 2022 earnings results on its investor relations website on July 27, 2022. According to the release, Meta put up a revenue of $28.82 billion USD, but it fell short of an expected $29 billion. Expectations for its EPS were also set at around $2.59 per share with a the Whisper Number set at $2.53 per share. Meta missed both of these targets with an actual EPS of $2.46 per share.
In the actual report, Meta attributed these shortcomings to a variety of issues. Notably, the company’s ads and marketing have taken a blow in recent quarters thanks to new regulations and platform features that allow users to protect their personal information from targeted marketing if they so desire. Meta goes on to claim that global economic issues also had some effect on the company’s overall quarter.
“This outlook reflects a continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty,” the report says of recent and future fiscal quarters.
With Meta raising prices on certain goods like the Meta Quest 2, it seems likely that the company is trying to recoup some of its losses and gain some financial footing ahead of difficult expectations for Q3 2022. Stay tuned for more quarterly results and financial reporting on the tech industry, right here at Shacknews.