The social media giant is scheduled to release earnings after Wednesday 's closing bell. For a while now, Facebook has warned investors to brace for "ad targeting headwinds" related to Apple's changes, as well as others in the internet landscape. No company complained more about the impact of iOS 14.5 than Facebook, which warned that the change to the Apple software would impact small businesses' ability to market to their customers. This makes it difficult for companies like Facebook to target users with personalized ads. The update, known as iOS 14.5, allows iPhone and iPad users to limit companies from tracking their device's activity. That's because this quarter will be the first for the social media company since Apple released a key iPhone software update in April. No metric will be more important for measuring the health of Facebook's business in its second-quarter earnings results than the company's advertising revenue. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower She said she expects the regulatory environment to continue to be a "real challenge" for the whole industry.Best Debt Consolidation Loans for Bad Credit Sandberg said that though finalized text of the DMA has not been made public, it was generally in line with expectations. Meta is also expecting to face a tougher regulatory environment moving forward with Europe coming to an agreement on the Digital Markets Act, which aims to rein in the power of digital gatekeepers. "We think while these times are challenging, over the long run, we do have a very strong competitive advantage when you look across the opportunities advertisers have to advertise both offline and online," Sandberg said. Google-owned YouTube grew just 14% in the first quarter, far below the 25% analysts had expected.ĬFO Dave Wehner said that because of the loss of users in Russia, where the country's media regulator restricted its services, the company expects a sequential decline in MAUs in Europe in the next quarter, which will more fully reflect the result of that government action.ĭigital ads could also be impacted by inflation and Apple's recent privacy changes on iPhone operating systems, which Wehner previously predicted would result in a $10 billion revenue hit in 2022, though he acknowledged that figure was an estimate.Ĭhief Operating Officer Sheryl Sandberg told analysts on Wednesday's earnings call that they've so far "been able to close a good part of the underreporting gap and share that with advertisers," but it will take more time to make up for the rest. Snap CEO Evan Spiegel called the first quarter "more challenging than we had expected." The company said some advertisers had paused advertising campaigns after Russia's invasion of Ukraine in February. Other social media companies similarly pointed to macroeconomic factors impacting their advertising revenue. It expects most of that expense growth to be driven by its family of apps segment, followed by Reality Labs. Reality Labs lost $2.96 billion in the period compared with a loss of $1.83 billion in the first quarter of 2021.įacebook lowered its total expenses guidance for 2022 to somewhere between $87 billion and $92 billion, below its earlier estimate of $90 billion to $95 billion. In the family of apps business, net income dropped 13% from a year earlier to $11.48 billion. The remaining $695 million came from Reality Labs, the part of the company that's attempting to build products for the metaverse. Personal Loans for 670 Credit Score or Lowerįacebook changed its name to Meta in October, reflecting CEO Mark Zuckerberg's effort to push the company towards a future of working, playing and studying in a virtual world.įacebook's family of apps, including the core app, Instagram and WhatsApp, accounted for 97.5% of revenue in the quarter. Best Debt Consolidation Loans for Bad Credit
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