Facebook’s parent delivered 3Q22 earnings per share (EPS) of $1.64 vs. $1.89 expected. Revenue for the quarter was $27.71 billion vs. $27.38 billion expected.
This is the second-straight quarter that Meta reported a decline in revenue. Reality Labs division, which houses its VR headsets, lost more than $9 billion in the first three quarters of this year.
However, its user traffic is still relatively strong, according to StreetAccount. Daily Active Users (DAUs) was 1.98 billion vs 1.98 billion expected. Meanwhile, Monthly Active Users (MAUs) came in at 2.96 billion vs 2.94 billion expected, but Average Revenue per User (ARPU) missed expectations at $9.41 vs. $9.83 expected.
The company’s costs and expenses jumped 19% to $22.1 billion, compared to the same period of last year. Meanwhile, operating income fell 46% from the previous year to $5.66 billion.
More importantly, Meta’s operating margin fell by a whopping 16 percentage points, dropping to 20% from 36% a year earlier.
Prior to the earnings report, the share price of Meta Platforms dropped by 5.59% as investors anticipated this short outcome.
The company also said that revenue for the fourth quarter of this year will be $30 billion to $32.5 billion in which the lower end would be lower than analysts expectations for $32.2 billion.