What you need to know
- Meta announced its financial earnings for the second quarter of 2022, posting a 1% decline in revenue compared to the same period last year.
- The company is monetizing its products, including Reels, where mobile broadcasting is dominated by TikTok.
- The FTC was appropriate for Meta to block its acquisition of VR studio Inside.
Meta announced its financial earnings for the second quarter of 2022 on Wednesday, disappointing investors as the company saw its revenue decline for the first time compared to the same period in 2021. Meta saw revenue of $28.82 billion, compared to $29.07 billion in the second quarter of 2021, and less than analysts’ expectations of $28.94 billion.
However, the company has seen an increase in the number of daily and monthly active users.
“It was good to see a positive trajectory for our engagement trends this quarter coming from products like Reels and our investments in AI,” said Mark Zuckerberg, CEO of Meta. statement. “We are putting increased energy and focus on our key company priorities that open up both near and long-term opportunities for Meta and the people and businesses that use our services.”
As with much of the tech industry, Meta has been feeling the recent economic pressure, which led to the company’s “cost-conscious” decision to slow hiring and even reduce staffing, he reported. the edge. The company has also felt pressure to monetize its platform, including Instagram Reels, which competes with apps like TikTok. Recently, the company raised the price of the Quest 2 VR headset by $100, citing increased manufacturing and shipping costs.
On the other hand, and certainly not helping the situation, the FTC is currently running File a ban Meta’s acquisition of Inside, the VR studio responsible for the popular game Supernatural.
“Allow to get Meta supernatural It will bring together the makers of two of the most important VR fitness apps, thus eliminating the beneficial competition between Meta Saber won The complaint states that the application and within the application are supernatural.” The complaint notes that the Meta’s control of the metaverse makes the proposed acquisition “illegal”.
In response, Meta stated Wednesday that the FTC’s case is “based on ideology and speculation, not evidence. The idea that this acquisition will lead to non-competitive outcomes in a dynamic space with as much entry and growth as online and connected fitness is simply not credible.” .”
“By attacking this deal in a 3-2 vote, the FTC is sending a chilling message to anyone who wants to innovate in VR. We are confident that our acquisition of Inside will be beneficial to people, developers, and the VR space.”
You can read Meta’s full response over here.