Meta reports weak earnings, daily active users fall for the first time, down 23% after hours

Facebook’s parent company Meta announced its first earnings report after the name change, and its stock price plunged more than 20% after the bell after the bell, as the company’s Q4 earnings performance and active user performance were lower than expected due to Apple’s privacy policy adjustment and supply chain issues.

According to Q4 2021 data, Meta’s revenue of $33.67 billion was slightly higher than Refinitiv’s estimate of $33.4 billion. Facebook’s monthly active users (MAU) of 2.91 billion did not show significant growth compared to the previous quarter.

Meta’s core business, Facebook Apps (FoA), which includes Instagram, Messenger and WhatsApp, reported revenue of US$32.79 billion and operating income of US$15.89 billion in the fourth quarter, while the Reality Labs division reported revenue of US$877 million and operating loss of US$3.3 billion.

For the full year 2021, revenue was US$117.93 billion, up 37% YOY, and diluted EPS was US$13.77, up 36% YOY.

Revenue for the first quarter of 2022 is expected to fall in the range of $27 billion to $29 billion, up 3% to 11% YOY, compared to $30.15 billion expected by Refinitiv analysts.

Meta noted that a number of factors impacted last quarter’s performance, including a change in Apple’s iOS privacy policy and general economic challenges, while growth was lower than expected due to inflation and a decline in advertisers’ budgets due to supply chain issues.

At the same time, competitor TikTok and YouTube platforms are dividing up users’ time together, making competition for time intensify.

Meta plunged nearly 23% after the announcement, and its market cap evaporated $200 billion to $249.05.