Facebook lost 2 million monthly active users in Q2 2022; tries to compete in the market with TikTok
Meta released the results for the 2nd quarter of 2022 this Wednesday (27.Jul.2022) with its 1st loss of quarterly revenue in history. The company had $28.8 billion in net revenue – down 1% compared to the same period in 2021.
Facebook lost 2 million monthly active users from April to June 2022. Net income dropped 36% to $6.69 billion, or $2.46 per share. Here’s the intact of the report (170 KB, in English).
The drop in the number of monthly active users – those who access the platform at least once a month – was driven by the European market, which dropped from 418 million to 407 million users in the quarter.
Reinforcing the strategy of giving more space to the reproduction of videos to compete with TikTok, the bigtech saw a 30% increase in video viewing time from “reels” on both Facebook and Instagram, according to Meta Executive Director Mark Zuckerberg.
Although Meta is not monetizing the “reels” –short videos with a maximum length of 60 seconds– Zuckerberg said the tool represents $1 billion in annual revenue for Meta.
O “reels” was the subject of controversy during the week, with influencers Kylie Jenner and Kim Kardashian asking Instagram to stop “try to be” the Chinese social network. Together, the sisters have nearly 700 million followers on the platform.
The expectation is for revenue of US$ 26 billion to US$ 28.5 billion for the 3rd quarter, compared to R$ 28.3 billion in the period from July to September 2021.
In crisis and with the expectation of reducing between 3,000 and 4,000 the hiring of engineers in 2022Meta has announced news to try to renew the attractiveness of its platforms among the public.
On July 14, it announced that Facebook users can have up to 5 profiles. The principal will follow the person’s real name, and the rest will be accessed by any additional profiles created after logging into the account.
Last Thursday (July 21, 2022), the company said it was revamping the main Facebook feed to prioritize new content. The main page will begin to feature popular posts from accounts users do not follow, including “reels” and “stories”, said Meta in a statement.
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