London Daily

Focus on the big picture.
Thursday, Jul 24, 2025

Facebook parent Meta reports weakest revenue growth for a decade as ad sales suffer

Facebook parent Meta reports weakest revenue growth for a decade as ad sales suffer

Investors respond positively to Meta's latest figures as daily active user numbers grow by more than the market had expected, though the company cautions that Russia's war in Ukraine has added to the downbeat sentiment among advertisers.

Facebook's parent company has reported its weakest revenue growth for a decade but witnessed a partial recovery in its share price following a torrid 2021 to date for the company.

Meta Platforms recorded revenue of $27.9bn between January and March - slightly below what Wall Street had expected.

The company had warned at the time of its 2021 annual results in early February that revenues during the first quarter of 2022 would not meet market forecasts for several reasons, including increased competition.

Leading the list of headwinds was advertising, which accounts for the bulk of Meta's revenue.

The company explained then that ad budgets were coming under increasing strain from rising inflation - exacerbated since late February by Russia's invasion of Ukraine.

Meta also pointed to the impact of an Apple software update late last year that had allowed iPhone users to opt out of advertising tracking.

This had made it harder, the company explained, for companies and groups to understand their market and it could result in a $10bn hit to ad sales across 2022.

While Meta acknowledged that the situation remained tough, it reported daily active user numbers that pleased the market after Facebook recorded its first ever decline during the final quarter of 2021.

The numbers using Facebook alone were 4% up on the same period last year at 1.96 billion.

Meta lost $200bn of market value in a single February day after warning of revenue pressures


Shares - down 48% in the year to date - were up by more than 13% in extended trading following the release of the first quarter figures.

They also showed a 31% leap in spending had taken the gloss off profits, with net income down 21% at $7.5bn.

On the outlook ahead, the company said: "We expect second quarter 2022 total revenue to be in the range of $28bn-30bn.

"This outlook reflects a continuation of the trends impacting revenue growth in the first quarter, including softness in the back half of the first quarter that coincided with the war in Ukraine."

Ahead of the results' publication, AJ Bell analyst Danni Hewson wrote: "Robust ad spend is crucial for Meta's success... Marketing budgets are being pared back as companies adjust to the current situation.

"Not only are they having to think about their own financial health, but the reality is if consumers don't have cash to spend there's no point wasting money trying to temp them.

"Then there's Meta itself. It might have a new name but it's the same old business and in the case of Facebook it just feels a bit musty.

"If advertisers have cash to splash, they'll want to generate the biggest bang for their buck, and many will be looking at Facebook's demographics and wondering if other platforms might better fit their needs."

Newsletter

Related Articles

0:00
0:00
Close
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
×