Goal has just submitted its second quarter 2022 earnings report. This reflects a decline in monthly active Facebook users, as well as a further slowdown in revenue. Faced with this, Zuckerberg has not stood still and has begun to devise a plan that gives Meta the boost it needs right now.
Presentation of Meta results for the second quarter of 2022
Active Monthly Users
Regarding the number of active monthly users, Facebook lost 2 million this second quarter of 2022 compared to the previous one, standing at 2,934 million.
In this category, Europe is the geographical area in which the social network loses a greater number of active users. Unlike in the old continent, in the US and Canada this figure increases by 1 million users.
Active Daily Users
Facebook has 1.968 million active daily users worldwidea minimal difference from the 1,960 it achieved in the first quarter of 2022. However, the slight decline daily active users in Europe continues.
Part of this loss of active users may be due to the situation of Facebook in Russia, a country in which the social network faces restrictions from the government, derived from the conflict with Ukraine. Taking into account that Facebook has 70 million Russian users, this decline has not been as strong as might be expected.
Joint use of the “Meta family of applications” grows
Meta has also wanted to include in its presentation of results the total figures of monthly users of its “family of applications”, which includes Facebook, Instagram, Messenger and WhatsApp. Taking the data from all these apps together, Meta does experience an increase, albeit slight, from from 3.64 billion active monthly users to 3.65 billion.
Goal increases your gross income but your overall income decreases
As reflected in the report, Zuckerberg’s company generated 28,820 million dollars (28,150 million euros). However, although it was close, this figure did not reach market expectations of 28,940 million dollars (about 28,267 million euros).
In this chart we can once again see how Europe continues to be Meta’s Achilles’ heel. The company will have to devise new strategies that recover the attention of European users.
On the other hand, if we look at the data related to the income after taxes of Meta, these are located in the 6,687 million dollars (about 6,531 million euros) the lowest value since the third quarter of 2020.
The three steps to boost Meta
The uncertainty that characterizes the current economic panorama is one of the reasons indicated by Zuckerberg that would be affecting digital advertising investment, and therefore, Meta. Zuckerberg himself made reference to this problem, as well as to the results of the report in one of his Facebook posts. And, likewise, In this statement, he addressed the strategy that the company has in mind to improve them.
1. Reduce headcount growth
Last June, Zuckerberg even told his workers during a weekly question-and-answer session that he would freeze hiring, while declaring that there were people in the company who should not be there. Now, in this statement, the CEO of Meta has once again referred to his plan for team reduction: “Our plan is to steadily reduce headcount growth over the next year. This is a period that requires greater intensity and I hope we do more with less resources«.
This workforce reduction will be carried out by delegating to the leaders of the different teams and areas the decisions of “where to duplicate, where to fill in the attrition and where to restructure the teams”.
2. Up the ante for Reels by improving recommended content
As Zuckerberg states, “Reels already represent 20% of the time people spend on Instagram. This quarter we saw a more than 30% increase in the time people spent engaging with Reels on both Facebook and Instagram. AI advancements are driving many of these improvements, and one example is that after launching a new AI model for recommendations, we saw a 15% increase in watch time on Reels on Facebook alone.”
Likewise, he also addressed the issue that Reels are still not monetized at the same rate as Feed posts or Stories. However, if this rapid growth continues, Zuckerberg says that his monetization efficiency will increase along with it. In fact, he is already doing it, since he has already exceeded 1,000 million dollars (about 977 million euros) in the annual ad revenue rate.
3. The metaverse, the ace up Zuckerberg’s sleeve
Of course, Meta’s (not-so-secret) weapon is the metaverse, “given some of the product and business constraints we’re facing right now, I think even more that develop these platforms (metaverse) will unlock hundreds of billions of dollarsif not trillions, over time.”
To continue developing this strategy, Meta will continue to expand Horizon, your social metaverse platform. Also, will launch a web version which will be available on all platforms by the end of the year. The goal of this move is to significantly increase the number of people using Horizon.
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