Facebook parent Meta Platforms posted first-quarter results showing its slowest revenue growth since the company went public in 2012.
Meta reported Q1 results on Wednesday that show the tech giant is beginning to slow down, with further declines expected in the second quarter total revenue in the range of $28 to $30 billion. Overall revenue growth came in below 10.7% compared with its year-ago quarter, the slowest pace it has seen since its IPO.
The company reported an earnings per share of $2.72, higher than analyst projections of $2.56 for this quarter. Quarterly revenue was $27.9 billion, up 7% from the previous year, below analyst estimates of $28.2 billion — advertising remaining its biggest revenue driver. Analysts expected Meta to report a significant year-over-year decline in EPS and the slowest pace of revenue growth in three years, based on financial data from Visible Alpha.
Facebook’s user growth showed a modest increase, as the platform reported 2.94 billion monthly active users and 1.96 billion daily active users this quarter. Overall, the company posted 3.64 billion monthly active people across Facebook, Instagram, Messenger and WhatsApp. Analysts projected 3.7 billion MAP for the quarter, showing some increase year-over-year but growing at its slowest pace in at least three years.
“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,” CEO Mark Zuckerberg said in the release. “More people use our services today than ever before, and I’m proud of how our products are serving people around the world.”
Meta’s stock earlier this year plummeted after it reported disappointing Q4 results, with monthly user growth stagnant and daily active users declining for the first time last quarter to 1.929 billion globally. Meta considers a monthly active user as someone who is registered and logged in to visit Facebook or its Messenger app during the 30-day period.
In February, the company shed more than $230 billion of its market value in just one week, which made its valuation less than a quarter of Apple’s $2.8 trillion market cap. Meta went down in history that month for the biggest one-day crash in the stock market.
There will be more challenges ahead as Facebook and Instagram continue competing with the significantly more popular TikTok, which has become the favorite social app among teenage users. Snap previously held that top spot, according to Piper Sandler’s teen survey this year.