Mobile recruitment is slow

Meta's revenue in the second quarter fell short of expectations, with a simultaneous decrease of 1%.

Meta's revenue in the second quarter fell short of expectations, with a simultaneous decline of 65,438+0%. The decline in online advertising revenue of Meta's core business is one of the main reasons for its decline in revenue. Influenced by inflation and other factors, advertisers began to cut advertising expenses, and Meta's revenue in the second quarter was lower than expected, with a simultaneous decline of 65,438+0%.

Meta's revenue in the second quarter fell short of expectations, with a simultaneous decline of 1%. Meta's performance last quarter did not meet expectations. Since listing, revenue has declined year-on-year for the first time, and net profit has declined for the third consecutive quarter.

After the close of US Eastern Time on July 27th, the parent company of Facebook, Meta Platforms(Nasdaq:META), released its financial report for the second quarter of 2022, and its revenue decreased by 1% to $28.822 billion, which was the first year-on-year decline in the company's history. Slightly lower than Wall Street's expected $28.9 billion; The net profit was $6.687 billion, a sharp drop of 36% year-on-year, and the net profit declined for three consecutive quarters; Earnings per share (EPS) was $2.46, down 36% year-on-year, lower than analysts' expectations of $2.59.

Meta said that this quarter's performance was less than expected, which was affected by macroeconomic uncertainty and competition from Tik Tok for short video applications.

Sheryl sandberg, chief operating officer of Meta, said that macro factors such as Russia and Ukraine and the epidemic situation are still affecting the company. At the same time, the uncertainty of inflation and economic recession has also brought new challenges.

Advertising revenue is inferior, and the weak advertising demand will continue.

Daily active Facebook users (DAU) are the only bright spot of Meta's performance this quarter, with a year-on-year increase of 3% to 654.38+0.97 billion, which did not decline as expected by analysts. The number of monthly active users (MAU) was 2.93 billion, a year-on-year increase of 1%.

Meta's main revenue sources (application family), including Facebook, Ins, Messenger, WhatsApp and other services, achieved revenue of $28.37 billion, down 1.4% year-on-year.

Mark Zuckerberg, CEO of Meta, said in a conference call that the annual revenue of Reels, a short video application, has reached $ 1 billion. Although the company has invested a lot of money in Reels, its income-generating efficiency is still not as good as that of products such as Ins Stories.

Advertising revenue of core business in this quarter was $2,865,438+$52 million, down 1.5% year-on-year. The number of advertising impressions, which measures the number of advertisements displayed to users, increased by 15%, which was the same as that in the first quarter, and the unit advertising price decreased by 14% in the quarter.

According to the financial report, Meta gave guidance on the third quarter results, and the total revenue is expected to be between 26 billion and 28.5 billion US dollars. Dave Wehner, its chief financial officer, said that this forecast shows that the weak advertising demand will continue, which is caused by macroeconomic uncertainty.

The Hyperspace Department continues to "burn money" to control costs and slow down recruitment.

Reality Labs, the hypercosmic division, has not yet made a profit. This is the third time that Meta has publicized the performance of the reality lab. In this quarter, the department achieved revenue of $452 million, a year-on-year increase of 48.2%, but the loss reached $2.802 billion. The department lost $2.96 billion in the first quarter, with a loss of $202 1 year 102 billion.

Meta said that the revenue of Reality Lab in the third quarter is expected to be lower than this quarter.

According to The New York Times, Meta said that it will invest about 654.38+0 billion US dollars in the research and development of technologies related to the Metauniverse this year, which is about five times the amount it spent on acquiring Oculus VR in 2065.438+04 and 654.38+00 times the amount it spent on acquiring Ins in 2065.438+02.

Just the day before the financial report was released, Meta also increased the price of Meta Quest 2 by $65,438+000, citing the rising production and transportation costs.

Meta said that the number of employees increased by 32% compared with the same period last year, reaching nearly 84,000. But like many technology companies, Meta is also planning to slow down recruitment.

According to CNN, Zuckerberg said on July 1 that the company is facing one of the most serious economic recessions in recent years with the slowdown in the growth of users and advertising revenue, so Meta lowered the recruitment target for 2022 from the initial plan to recruit about 10000 new engineers to about 6000-7000. On July 1 1, The Wall Street Journal reported that Meta asked managers to replace the employees with the worst performance in order to control costs.

Zuckerberg said that the current economic downturn will affect the company's advertising revenue, so it is necessary to slow down recruitment, reduce the size of the team and use the funds elsewhere.

"It is difficult to predict how long the depressed economy will last. The current situation seems to be only worse than last quarter. " He said that in the future, the company will focus on long-term investments, including "discovery engines", scrolls, advertising facilities and metauniverse.

Zuckerberg also said, "The metauniverse can bring us a deeper social experience, no matter where we are, no matter what we are doing-whether we are playing games or working, we only need to enter the metauniverse platform to communicate or cooperate with friends. At present, we still face technical and product limitations. Over time, this platform will release hundreds of billions of dollars of potential. "

As of the close of US stocks on July 27th, Meta closed up 6.55% at 169.58 USD, and fell more than 4% after the close.

Meta's revenue in the second quarter fell short of expectations, with simultaneous decline 1% 2 On July 27th, local time, Facebook's parent company Meta(META, share price 169.58 USD, market value of 458.938 billion USD) announced its financial report for the second quarter of 2022 as of June 30th. The financial report shows that Meta's revenue in the second quarter was about US$ 28.8 billion, down 65,438+0% year-on-year. This is the first time in the company's history that quarterly revenue declined year-on-year. The net profit was about $6.7 billion, down 36% year-on-year; Diluted earnings per share was $2.46, a year-on-year decrease of 32%.

As the decline in revenue and net profit in the second quarter exceeded analysts' expectations, the share price of Meta, which closed up nearly 6.6%, fell by 4.53% in after-hours trading.

The decline in online advertising revenue of Meta's core business is one of the main reasons for its decline in revenue. Affected by inflation and other factors, advertisers began to cut advertising spending, which led to pressure on online advertising sales of all social media platforms.

According to the company's latest financial report, advertising revenue in the second quarter was $2,865,438+$500 million, down $65,438 +0.5% year-on-year, the lowest level since the first quarter of last year, and also lower than the analyst's expectation of $28.53 billion.

At the same time, mark zuckerberg, the founder and CEO of Meta, has brought a heavy burden to Meta. Reality Labs, a hyperuniverse-related business, including AR (augmented reality) and VR (virtual reality) related hardware, software and content, earned 452 million US dollars, the lowest level in the last four quarters since the second quarter of last year, with a year-on-year increase of 48.2%, with a loss of 2.8 billion US dollars and a loss of 2.96 billion US dollars in the first quarter.

The good news is that as an important user indicator of Facebook, the number of daily users increased in the second quarter. The number of daily Facebook users in this quarter was 65.438+0.97 billion, which was higher than the market expectation of 65.438+0.96 billion, with a year-on-year increase of 3% for two consecutive quarters. In the fourth quarter of 200212002, Facebook reported a decline in the number of users for the first time in history, which attracted market attention.

The current economic weakness makes Meta cautious about its future performance prospects. Meta predicts that the company's overall operating income in the third quarter is expected to be $26 billion to $28.5 billion, which is equivalent to a year-on-year decrease of 0.79% to 8%. Meta also predicts that the revenue of Reality Lab in the third quarter will be lower than that in the second quarter.

David Wehner, chief financial officer of Meta, said that the weak advertising demand experienced by the company throughout the second quarter will continue, which is driven by broader macroeconomic uncertainty.

While releasing the financial report, Meta also announced the personnel changes of senior management. From this year 1 1, the current CFO Wehner will be the first chief strategy officer of Meta, responsible for corporate strategy and enterprise development. Susan Li, the current vice president of finance, will be promoted to chief financial officer.

According to the financial report, as of the end of the second quarter, the total number of Meta employees was 83,553, which was higher than the market expectation of 80,654,38+0,880, an increase of more than 5,700 compared with the second quarter. However, according to the latest news, the number of new employees of Meta may drop sharply in the third quarter.

Wehner mentioned that Meta has reduced its recruitment scale and overall cost growth plan this year in view of the greater challenges facing the business environment. Wehner said that Meta predicted that the total cost in 2022 would be $85 billion to $88 billion, which was lower than the company's previous expectation of $87 billion to $92 billion.

In the middle of this quarter, Meta has announced that it will slow down the pace of recruitment. At a regular staff question and answer meeting at the end of June, Zuckerberg, founder and CEO of Meta, made it clear that due to the economic situation and business pressure, the company will slow down the recruitment pace and reduce the recruitment scale of engineers from 65,438+00,000 to 6,000 ~ 7,000 in 2022.

Meta's revenue in the second quarter fell short of expectations, with a simultaneous decline1%3 On July 28th, Meta Platforms(FB. The United States) announced its second quarter earnings report. Due to the decline in advertising revenue, there was the first ever decline in revenue in the second quarter. The company's revenue in the second quarter was $28.822 billion, down 65,438+0% year-on-year, and the market expectation was $28.94 billion. Net profit was $6.687 billion, down 36% year-on-year. Diluted earnings per share was $2.46, down 32% year-on-year, and the market expected it to be $2.52.

In the second quarter, the revenue of the application family including Facebook, Ins, Messenger and WhatsApp was $28.37 billion, compared with $28.772 billion in the same period last year. Among them, advertising revenue was $286.5438+$52 million, compared with $28.58 billion in the same period last year. The operating profit of application family1165438+64 million dollars, and the operating loss of real laboratory is 2.806 billion dollars.

In the second quarter, DAP was 2.88 billion, up 4% year-on-year, and the market expectation was 2.91100 million. Daily active users (DAU) reached 65.438+0.97 billion, a year-on-year increase of 3%, and the market expectation was 65.438+0.96 billion; Monthly active users (MAU) reached 2.93 billion, up 65,438+0% year-on-year, and the market expectation was 2.94 billion. The average revenue per user is $9.82, and the market expects $9.83.

The company's advertising business has encountered some obstacles. Due to various economic pressures, the expenses of marketers are decreasing, which makes Meta and other peer advertisers have to compete for less budget. Apple's privacy policy reduces the effectiveness of advertising on Facebook and Ins. Meanwhile, in order to compete with Tik Tok, social networks have been showing short videos to more users, which is a form that advertisers are still adapting to. But Meta didn't make much money from this channel.

The disturbing result of Facebook is its competitor Snap(SNAP. United States) and Twitter (TWTR. US) A trend started last week. Both companies released disappointing second-quarter data, and executives pointed out that the challenges of economy and mobile platforms have penetrated into the online advertising market. However, the slowdown in advertising spending has caused different blows to some meta-competitors. Advertising sales of Google owned by Alphabet(GOOG). Especially in the field of search advertising, marketers pay for direct advertising.

Meta is going through a period of great change. CEO mark zuckerberg is trying to mobilize his employees to work harder to retain users, attract young people and prevent them from moving to TikTok, which is an international version of Tiktok owned by ByteDance.

Meta added more short videos inspired by Reels- Tik Tok to its application, and began to pay the creators who released these videos. The company has also made major adjustments to the algorithms of social applications, focusing on showing people new types of content that they don't pay attention to. Although Facebook invests in scrolls, the product is not as efficient as Ins Stories.

In response to this uncertainty, Facebook tried to control costs by slowing recruitment and focusing on fewer priorities, such as developing short video strategies and algorithm recommendation engines. The company is still investing in the Metauniverse, and Zuckerberg believes that people will eventually work, shop and communicate through this immersive virtual reality world.

Reality Labs will invest a huge sum of money to develop the metauniverse and related virtual reality and augmented reality technologies. The department achieved sales of $452 million in the second quarter, but lost $2.8 billion. Meta predicts that the department's revenue in the third quarter will be lower than that in the second quarter. Earlier this week, Meta raised the price of Quest 2 VR helmet by $65,438+000, citing the rising production and transportation costs.

Although Meta is currently the leader in selling VR helmets, compared with mobile advertising, this market is still small. As the company continues to use Metauniverse as part of its corporate brand rebranding, it has also invested more in sales and marketing. In the second quarter of this year, these expenses increased by 10% year-on-year to reach $3.6 billion.

Looking into the future, Meta expects the total expenditure in 2022 to be $85 billion to $88 billion, which is lower than the previous expectation of $87 billion to $92 billion, due to the reduction of layoffs and other expenses. Meta also expects the third quarter to be $26.6 billion to $28.5 billion, which is lower than Wall Street's expectation of $30.38 billion. The company's statement said: "This prospect reflects that the weak advertising demand environment we experienced throughout the second quarter continues, which we believe is driven by broader economic uncertainty."

As of press time, US dollar stocks fell 4.53% to 16 1.89 USD after hours.