Meta has announced advertising revenue of $ 32,639 million for the quarter ended December 31, 2021. The company has registered a 20% growth on a Year-on-Year basis as compared to the corresponding period in the last year when the ad revenue stood at $ 27,187 million.
This also represents a 15% increase in ad revenue from the quarter ended September 30, 2021.
As per the company, in the fourth quarter of 2021, ad impressions delivered across its Family of Apps (which includes Facebook, Instagram, Messenger, WhatsApp and other services) increased by 13% year-over-year and the average price per ad increased by 6% year-over-year. For the full year 2021, ad impressions increased by 10% year-over-year and the average price per ad increased by 24% year-over-year.
The net income for the quarter ending in December 2021, however, stood at $ 10,285 million, marking a negative growth of 8% on a YoY basis. This comes despite an increase in the company’s total revenues and is aggravated by the increase in total costs and expenses.
The report highlights that Facebook’s daily active users (DAUs) were 1.93 billion on average for December 2021, an increase of 5% year-over-year.
"We had a solid quarter as people turned to our products to stay connected and businesses continued to use our services to grow," said Mark Zuckerberg, Meta founder and CEO. "I'm encouraged by the progress we made this past year in a number of important growth areas like reels, commerce, and virtual reality, and we'll continue investing in these and other key priorities in 2022 as we work towards building the metaverse."
The company has predicted total revenue in the first quarter of 2022 in the range of $ 27-29 billion, which represents a 3-11% YoY growth.
However, Meta CFO, Dave Wehner, went on to add, “We expect our year-over-year growth in the first quarter to be impacted by headwinds to both impression and price growth.
“On the side of the impression, we expect continued headwinds from both increased competition for people's time and a shift of engagement within our apps towards video surfaces like Reels, which monetise at lower rates than Feed and Stories.”
“On the pricing side, we expect growth to be negatively impacted by a few factors: First, we will lap a period in which Apple's iOS changes were not in effect and we anticipate modestly increasing ad targeting and measurement headwinds from the platform and regulatory changes. Second, we will lap a period of strong demand in the prior year and we're hearing from advertisers that macroeconomic challenges like cost inflation and supply chain disruptions are impacting advertiser budgets. Finally, based on current exchange rates, we expect foreign currency to be a headwind to year-over-year growth,” he added.
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