Meta expects its Q2 revenue to be between $28 and $30 billion.
Facebook’s parent company Meta Platforms (NASDAQ: FB) saw an18% spike during after-hours trading as the company reported better-than-expected earnings in 2022 Q1. For the quarter ended 31st March, the company said its earnings per share was $2.72, surpassing analysts’ expectation of $2.56. Despite the 18% jump, Meta stock is still down about 48% since the year started. Moreover, the company’s stock has lost 43.03% in a year.
According to the press release, Daily Active Users (DAUs) for the quarter was 1.96 billion over the $1.95 billion expected and a 5% increase year-on-year. Additionally, Meta reported $9.54 as the Average Revenue Per User (ARPU). The ARPU exceeds the earlier prediction of $9.50. Furthermore, the report shows that Family daily active people (DAP) was 2.87 billion on average, a 6% addition year-over-year. Under ad impressions and price per ad, Meta realized a 15% spike year-over-year in 2022 Q1.
Meta founder and CEO Mark Zuckerberg wrote in the 2022 Q1 announcement:
“We made progress this quarter across a number of key company priorities and we remain confident in the long-term opportunities and growth that our product roadmap will unlock. More people use our services today than ever before, and I’m proud of how our products are serving people around the world.”
Meta Reports Losses in Metaverse Effort in 2022 Q1
Facebook changed its name to Meta in October last year as the company began to explore the virtual world. Despite that the metaverse is rapidly booming, the technological company announced losses in its newly-launched Facebook Reality Labs (FRL) division. The division includes Meta’s augmented and virtual reality operations. In 2022 Q1, Meta saw a loss of $2.96 billion. The company previously predicted FRL to lessen its general operating profit by around $10 billion in 2021. At the time, Meta also revealed plans to further invest financially into the division over the next coming years.
Meta expects its Q2 revenue to be between $28 and $30 billion. Chief Financial Officer Dave Wehner referred to the Russia-Ukraine war, which has made the company lose a lot of users. Therefore, Q2 may see a reduction in its Monthly Active Users (MAUs) in Europe. Also, Meta lowered its total expenses outlook for 2022 from $90.95 billion to $87-92 billion. The Family of Apps segment and Reality Labs are expected to fuel expense growth in the year.
“We expect 2022 capital expenditures, including principal payments on finance leases, to be in the range of $29-$34 billion, unchanged from our prior estimates. Absent any changes to US tax law, we expect our full-year 2022 tax rate to be above the first quarter rate and in the high teens.”
At press time, Meta stock is trading at $207.04, having lost 12.71% in the last five days.
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Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience.
Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
Source: https://www.coinspeaker.com/fb-stock-climbs-18-meta-announces-q1-2022-earnings-that-surpasses-expectations/