Facebook lost roughly 1 million daily active users between the third and fourth quarters of 2021, according to its earnings report.
Meta has announced that the number of Facebook users decreased for the first time in its history.
According to the figures shown in its quarterly earnings report, Facebook maintained 1.929 million daily active users in the fourth quarter of 2021 (from October to December).
The curious thing is that in the third quarter (July, August and September) the number was 1.93 billion, one million more than the last period.
Facebook shares fell 22% in premarket trading after this fourth quarter earnings announcement.
Why are there fewer people on Facebook?
CEO Mark Zuckerberg said on the company’s earnings call that the company’s social media business faces stiff competition.
“People have a lot of choice about how they want to spend their time, and apps like TikTok are growing very quickly ,” Zuckerberg said.
He added that the company will focus on Reels , its short-form video feature on Instagram that is a lot like TikTok.
Additionally, following a whistleblower ending to 2021 and a name change, Meta ‘s fourth-quarter earnings revealed that the company’s metaverse business reported a $10 billion operating loss .