Meta, Facebook’s parent, reports a 21 percent drop in profits.

Mark Zuckerberg, the founding father of Fb, has staked his firm’s future on an immersive on-line world referred to as the metaverse. On Wednesday, the corporate confirmed it was nonetheless navigating that transformation.

Meta, the corporate previously referred to as Fb, reported revenue of $7.5 billion for the primary quarter, down 21 p.c from a 12 months earlier. Income rose 7 p.c to $27.9 billion. Wall Avenue analysts had predicted income of $7.1 billion on income of $28.2 billion.

The outcomes adopted Meta’s dismal monetary report in February, when the corporate additionally posted falling income and slowing person development. The subsequent day, Meta’s inventory plummeted 26 p.c and its market worth plunged greater than $230 billion within the firm’s greatest one-day wipeout ever.

The 2 quarters have been the corporate’s first back-to-back revenue declines in over a decade, an indication of the difficulties it’s encountering because it adjustments course. Whereas Meta is spending closely on metaverse-related merchandise like virtual-reality goggles, whether or not individuals need to purchase such devices stays removed from sure. On the identical time, the corporate’s core social networking apps — together with Instagram, WhatsApp and Messenger — face challenges. New-user development has slowed, and competitors from rivals like TikTok, the Chinese language-owned video website, is rising.

In an announcement on Wednesday, Mr. Zuckerberg mentioned he was sticking by the metaverse plan. “We stay assured within the long-term alternatives and development that our product street map will unlock,” he mentioned.

Meta’s most important enterprise of digital promoting has been harm by Apple’s resolution to let iPhone customers restrict apps from monitoring their on-line actions. That change has affected Meta’s means to focus on advertisements to individuals on iPhones. Google has additionally mentioned introducing comparable privateness adjustments to its cellular merchandise, which may additional have an effect on Meta’s advert enterprise.

In March, Russia banned Fb and Instagram after its invasion of Ukraine, resulting in losses of tens of hundreds of thousands of customers, analysts mentioned. Fb had introduced it might start to label Russian state-backed media and loosen up hate-speech insurance policies for Ukrainian customers.

“Meta is going through Class 5 hurricane headwinds, from engagement to promoting to development,” mentioned Daniel Ives, an analyst at Wedbush Securities. “There’s a way that the corporate nonetheless doesn’t have its arms round all of the adjustments with the iPhone or with shedding customers.”

On Wednesday, Meta reported the quantity customers throughout its household of apps rose 6 p.c from a 12 months earlier and was up barely from the prior quarter. On Fb, the variety of customers who’re lively elevated to 1.96 billion per day within the first quarter from 1.93 billion within the earlier quarter.

In February, Meta disclosed that the core Fb app had misplaced about half one million customers over the fourth quarter from the earlier quarter. It was the primary such decline within the firm’s historical past.

Meta’s shares, which ended common buying and selling at $174.95, rose greater than 17 p.c in after hours buying and selling.