Meta Profits Slump 23% as Metaverse Bet Continues to Cost the Company Billions

Fb father or mother Meta reported earnings fell 23% throughout its first quarter in comparison with final yr on Wednesday, as Mark Zuckerberg’s social media empire tries to search out its footing amid a weaker financial system.

Throughout its first quarter, the social media large took in a revenue of $5.7 billion, a 23% drop in comparison with $7.4 billion a yr in the past. Income for the primary quarter totaled $28.6 billion, up barely in comparison with $27.9 billion final yr and beating expectations throughout Wall Avenue of $27.7 billion for the quarter.

In a shareholder letter, Zuckerberg mentioned the enterprise “had a good quarter and [its] community continues to grow,” including that its deal with AI throughout its apps is driving promising outcomes.

Whereas the corporate’s picture has largely centered on its metaverse push since a rebrand in 2021, Meta makes cash principally from promoting income, which totaled $28 billion for the quarter in comparison with simply $205 million in income from different sources. However its newest promoting income numbers symbolize a rise in comparison with $27 billion a yr in the past.

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