It’s been a poor quarter for Facebook’s parent company Meta, which reported more than $3.67 billion in losses this quarter at its metaverse division called Reality Labs, marking a substantial increase in losses from $2.8 billion just last quarter. The company also said it expects to lose even more money next year.
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“We do anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year,” exiting Meta Chief Financial Officer Dave Wehner said.
The latest earnings report shows that Meta’s bet on the metaverse has yet to pay off. In 2021, Meta lost $10 billion on the metaverse.
Meta CEO Mark Zuckerberg said the company was buffeted by “near-term challenges on revenue.”
Although Meta boasted revenue of $28 billion this quarter, the CEO said the figure was “still behind where I think we should be.” He indicated that jobs would continue to be cut and teams will stay lean in preparation for the accelerating slowdown.
“In aggregate, we expect to end 2023 as either roughly the same size or even a slightly smaller organization than we are today.”
Meta is still planning to unveil Meta Quest 3, or the the next Quest headset, in 2023.
“This is a massive undertaking and it’s often going to take a few versions of each product before they become mainstream,” Zuckerberg said. “But I think that our work here is going to be of historic importance and create the foundation for an entirely new way that we will interact with each other and blend technology into our lives.”