Facebook parent Meta was hit with a double whammy in the last three months: revenue fell for the first time ever and profit shrank for the third straight quarter, amid growing competition from TikTok and nervousness from advertisers.
“We seem to have entered an economic downturn that will have a broad impact on the digital advertising business,” CEO Mark Zuckerberg told investors on a conference call. “I’d say that the situation seems worse than it did a quarter ago.”
Revenue slipped 1% from a year ago to $28.8 billion in the three months ending in June, a bigger drop than Wall Street analysts were expecting. The strengthening dollar was a factor in the revenue decline, Meta said, without which it would have reported a 3% increase.
There was a silver lining in Meta’s quarterly report, however: people keep using Facebook. The number of people logging on to the flagship social network daily ticked up 3% to 1.97 billion, defying Wall Street’s expectations of another decline.