“Our community continues to grow and I’m pleased with the strong engagement we’re seeing driven by progress on our discovery engine and products like Reels,” is how Meta CEO Mark Zuckerberg opened his company’s latest financials announcement.
What’s not growing then? Revenues.
Meta’s Q3 revenues were down 4% year-on-year, although it still made $27.71bn last quarter. Across Meta’s family of products (Facebook, Instagram, WhatsApp, Messenger etc) its daily active users were up by 4% to 2.93 billion, while its monthly active users were up 3% to 3.71 billion.
“While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth,” promised Zuckerberg. It’s fair to say investors weren’t completely convinced: Meta shares dropped 19% in after-hours trading, knocking more than $65bn off the company’s market cap.
Advertising headwinds are part of the challenge, but Meta’s heavy investment in virtual reality is also a talking point, although Zuckerberg has regularly indicated plans to double down on this rather than row back.
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