Facebook’s parent company Meta reported its first ever decline in revenue, with overall profits falling 36 percent to $6.7 billion. This ended a decade of continuous revenue growth. The revenue for the second quarter was down by one percent. Growth in the third quarter is forecast to slow further.
Meanwhile, in an effort to compete with TikTok, Meta is making several changes to Facebook and Instagram to emphasize short videos and posts. Despite declining Meta revenue, Facebook’s daily active users grew 3 percent to 1.97 billion.
Meta reported that 2.88 billion people now use the suite of social apps — Facebook, Messenger, Instagram and WhatsApp — up 4 percent from a year ago. Zuckerberg said that Reels, the company’s short-form video format aimed at TikTok, has been very influential and that consumption of videos has increased.