Metaverse Losses Exceed $3.6 Billion for Meta with Expenses Expected to Rise
The tech giant is just over $500 million away from overtaking its losses of more than $10 billion in the department Metaverse in 2021, but he said his spending will only grow next year.
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Big Five tech player Meta continues to burn cash through its Metaverse research and development arm, Reality Labs, with a loss of $3.67 billion recorded for the third quarter of 2022, indicating that these losses will worsen further next year.
The company's third quarter 2022 results released Oct. 26 show the largest quarterly losses ever for Reality Labs versus earnings dating back to the fourth quarter of 2020, the company also posted revenue of $285 million for the third quarter, its lowest on record in that timeframe.
With its Reality Labs business marking its third consecutive quarterly loss totaling $9.44 billion so far in 2022, Meta is preparing to beat its 2021 losses on its metaverse game which recorded just over $10 billion dollars of losses last year.
These year-over-year losses are expected to worsen, as Meta CFO Dave Whener said in the results:
"We expect Reality Labs' operating losses in 2023 to increase significantly year-over-year. Beyond 2023, we plan to accelerate Reality Labs' investments so that we can achieve our objective of increasing the company's overall operating profit over the long term."
During Meta's earnings call, CEO Mark Zuckerberg remained unfazed by the company's big investment in what he called the "next computing platform." He said it was the company's top priority and told investors that building a metaverse and its related hardware was "a colossal undertaking".
“It will often take a few releases of each product before they become mainstream,” he added. "I think our work here is going to be of historic significance and lay the groundwork for a whole new way of interacting with each other and integrating technology into o...
The tech giant is just over $500 million away from overtaking its losses of more than $10 billion in the department Metaverse in 2021, but he said his spending will only grow next year.
New
Big Five tech player Meta continues to burn cash through its Metaverse research and development arm, Reality Labs, with a loss of $3.67 billion recorded for the third quarter of 2022, indicating that these losses will worsen further next year.
The company's third quarter 2022 results released Oct. 26 show the largest quarterly losses ever for Reality Labs versus earnings dating back to the fourth quarter of 2020, the company also posted revenue of $285 million for the third quarter, its lowest on record in that timeframe.
With its Reality Labs business marking its third consecutive quarterly loss totaling $9.44 billion so far in 2022, Meta is preparing to beat its 2021 losses on its metaverse game which recorded just over $10 billion dollars of losses last year.
These year-over-year losses are expected to worsen, as Meta CFO Dave Whener said in the results:
"We expect Reality Labs' operating losses in 2023 to increase significantly year-over-year. Beyond 2023, we plan to accelerate Reality Labs' investments so that we can achieve our objective of increasing the company's overall operating profit over the long term."
During Meta's earnings call, CEO Mark Zuckerberg remained unfazed by the company's big investment in what he called the "next computing platform." He said it was the company's top priority and told investors that building a metaverse and its related hardware was "a colossal undertaking".
“It will often take a few releases of each product before they become mainstream,” he added. "I think our work here is going to be of historic significance and lay the groundwork for a whole new way of interacting with each other and integrating technology into o...
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