The stragglers are still reporting their fourth-quarter numbers, but it’s time to focus on what the first and second quarters will bring. And it’s not shaping up to be good. Rising inflation, supply chain constraints and labor shortages are the macro factors bearing down on many, if not most, companies, although they’re surely baked into stock prices already. That means the impact of pulling out of Russia, while relatively small, will only make a bad situation worse.
Meta Platforms is the perfect example. Its chief financial officer, David Wehner, this week estimated that Russian advertisers and ads aimed at Russian users accounted for 1.5% of revenues last year. That might appear insignificant. But this is a company that projected its revenue growth would slow to as little as 3% in the first quarter—thanks to Apple, TikTok and other factors. With growth that meager, losing another percentage of revenue will really hurt, although the full effect won’t show up until the second quarter. Wehner also said the conflict had weakened business in Europe generally, which adds another layer to revenue pressures.
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