Facebook’s parent company Meta has reported its weakest revenue growth for a decade.
The slump in revenues comes despite a partial recovery in its share price following a wobbly 2021 to date for the company.
Meta Platforms recorded revenue of $27.9bn between January and March – slightly below what Wall Street had expected.
Jasmine Enberg and Evelyn Mitchell of Insider Intelligence commented: “The growth in daily active users (DAUs) is a good sign for Facebook, especially coming off of Q4 2021 when it experienced its first-ever decline in DAUs. But it’s also clear that Facebook is still struggling to bring in new users, and it’s becoming increasingly difficult for Instagram to pick up the slack. Most of the growth in both MAUs and DAUs in Q1 came from the rest of the world, not the US and Canada, which monetizes at a better rate.” – Evelyn Mitchell, Analyst at Insider Intelligence
“Meta’s ad business continues to face some very real challenges. Facebook, of course, is no stranger to obstacles, but the iOS changes are the first direct threat to its ad business. Combined with the rise of TikTok, brand safety concerns, and a shift in social media user behavior, there’s a perfect storm heading straight for Meta’s ad revenues. Even so, it’s clear that advertisers are still turning to Facebook and Instagram to reach their wide audiences.” – Jasmine Enberg, Principal Analyst at Insider Intelligence