Facebook and its recent Q4 2022 and full-year earnings results report highlights an increase in the number of active users, with a slight increase in the monthly active user count to 2.96 billion in the quarter.
However, the growth in Facebook usage remains flat in most markets except for the “Rest of the World” bracket. The report mentions that the usage increase is largely driven by Reels consumption and Facebook’s evolving AI recommendation systems. The company has also seen a decrease in revenue compared to Q4 of the previous year, partly due to a slowdown in ad spend and reduced efficiency of some of its ad products. Facebook has had to make layoffs and shut down various projects to become more efficient. The company’s metaverse focus is a significant financial commitment, with the Reality Labs unit reporting a $4.28 billion operating loss for the quarter and a total loss of $13.72 billion for the year. The report concludes by mentioning that Facebook’s ad impressions were up 23% YoY in the quarter and that the company is considering showing more ads in Reels and splitting the revenue with creators to gain more traction with top creators.
