Meta (FB) Q1 2022 earnings
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Mark Zuckerberg revealed to the world in October last year that Facebook was changing its name from Meta to Meta, as it pushes towards the metaverse.
Facebook | via Reuters
MetaAfter the Wednesday bell,, the former Facebook company, will release its first quarter results.
These are the main numbers
- Earnings per share:According to an analyst survey by Refinitiv, $2.56 is expected
- Revenue:Refinitiv estimates $28.2 trillion in revenue.
- Daily Active UsersStreetAccount predicts 1.95 Billion in revenue
- Monthly Active User (MAUs, monthly active users):StreetAccount: 2.97 Billions expected
- Average Revenue per User (ARPU):StreetAccount predicts $9.50
Meta updated investors for first time in a decade brutal fourth-quarter earnings reportIn February, the stock plunged 26%. This was its lowest point ever. Daily active users dropped for the first ever time, and the company expected weaker-than-expected gains.
The first quarter results will shed some light on macroeconomic trends such as inflation and the conflict in Ukraine that may have an impact on ad spending. The growth rate is 7.8%. This marks the lowest level of growth in Facebook’s 10 year history as an open-source company.
Snap‘s earnings Evan Spiegel, the CEO of Beardsley Communications said last week that it was more difficult than anticipated. AlphabetWith disappointing numbersThe Tuesday drop in sales was largely due to weak ad spend on YouTube.
An analyst will be also watching to determine how Facebook navigates Apple’sNew transparency rules for app apps, as Meta CFO Dave Wehner stated last quarter, would lead to a $10 billion revenue hit this year.
Wehner stated to analysts at the company’s earnings call that the number was an estimation of how the iOS changes will impact 2022 revenue.
It’s impossible to be exact on this. He acknowledged that it was an estimation, but said the company believed the effect would be substantial.
Investors looking to find signs of optimism, Meta’s guidance is crucial as the stock has fallen nearly 50%. Refinitiv polled analysts and found that second quarter growth was expected to be 5.3%. That would translate into revenue of $30.6 Billion. It’s a drop of 56% from last year.
WATCH: What is the metaverse and why are billions of dollars being spent on it?
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