Meta's CFO David Wehner says much of the decline can be attributed to inflation
Meta Platforms has announced its financial results for the third quarter of 2022. The parent company of Facebook and WhatsApp has reported a decline in their net revenue in the financial quarter. The revenue that the company was able to generate was $27.7 billion. This is 4 percent less than the $29.01 billion clocked in Q3Y21.
This is the second consecutive quarter where the company has reported loss. Last quarter also saw a decline of 1 percent in net revenue in comparison to last year.
Meta has asserted that if the foreign exchange rates had remained the same as last year, they would have recorded a $1.79 billion profit.
This is in contrast to the company's expenses. The cost and expenses for Meta were recorded at $22 billion, a 19 percent increase from last year's $18.5 billion. "This includes an impairment loss of $413 million for certain operating leases as part of our ongoing work to align our office facilities footprint with our anticipated operating needs," the company said.
Meta has also announced that it intends to make significant cost cutting efforts ahead of 2023. The company plans to maintain the same headcount in 2023 and "curtail non-headcount related expense growth".
"We're approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company," Mark Zuckerberg, Founder and CEO, Meta, said in a statement.
The company expects to recover in the fourth quarter of 2022 massively. "We expect fourth quarter 2022 total revenue to be in the range of $30-32.5 billion. Our guidance assumes foreign currency will be an approximately 7% headwind to year-over-year total revenue growth in the fourth quarter, based on current exchange rates," David Wehner commented.
The earning reports led to a 17 percent depreciation in Meta's share price.
The company also released viewership numbers, which tell a more positive tale for Zuckerberg and co. The number of active daily people on Meta owned properties was 2.93 billion on average for September 2022, an increase of 4% year-over-year. Monthly active users were 2.96 billion as of September 30, 2022, an increase of 2% year-over-year.
Ad impressions have also gone up by 17 percent year-over-year. However, the average price per ad decreased by 18% year-over-year.