Facebook, which caught a steady rise and increased its revenues especially during the pandemic period, started to have difficulties in the new year when normalization continued. Although the number of users increased, revenue growth was limited and net income decreased.
Facebook started to stagnate
According to the first quarter reports announced by Facebook, the number of daily active users increased by 4 percent to 1.96 billion, while the number of monthly active users increased by 3 percent to 2.94 billion. The number of daily active users of all platforms increased by 6 percent to 2.87 billion, while the number of monthly active users increased by 6 percent to 3.64 billion.
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Both the expenditures and the increase in the workforce decreased the profit margin. In addition, the loss of users in Russia also affected the tables. Operating profit fell 25 percent to $8.5 billion, driven by margin that fell from 43 percent to 31 percent. Net income fell 21 percent to $7.4 billion. Total revenue was $27.9 billion, up 7 percent.
For the current period, Facebook expects some recovery by cutting spending. While the total revenue expectation is determined as 28-30 billion dollars, it is foreseen that the loss of interaction in Europe and Russia will continue.
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