The company's total revenue of $28.8 billion was only down one percent compared to Q2 one year ago, but net income dropped 36 percent to $6.7 billion.
Now we know what you are thinking, $7 billion in profit is better than a poke in the eye with short stick, but such thinking is one of the reasons you don't make shedloads of cash on the share market. According to the Wall Street Journal, this is the first-ever drop in revenue for Meta / Facebook -- so even though we're only talking one percent, it's still a sign of dire things to come.
Revenue from advertising and Meta's "family of apps" was essentially flat year-over-year, and Reality Labs (home to hardware like the Meta Quest and other metaverse-related initiatives) actually grew 48 percent year-over-year to $452 million.
Reality Labs accounted for a $2.8 billion loss this quarter, a 15 percent larger loss than Q2 one year ago. At this rate, it seems likely that Reality Labs will lose Meta more than the $10 billion it cost the company in 2021.
The company said it expects Reality Labs revenue to be lower in the third quarter. In June, Meta said that it had 2.88 billion daily active users in its family of apps and 3.65 billion monthly active users, which are up four per cent compared to a year ago.
Facebook-specific growth was smaller, though -- average daily and monthly users only increased three per cent and one per cent, respectively.