Meta’s metaverse unit, Reality Labs, has encountered a close to $4 billion loss in Q1 2023. This loss comes after the division faced an annual loss of $13.7 billion last year – with a loss of $4.3 billion in Q4 2022.
Despite these cumbersome losses, the company remains committed and unyielding to its efforts in the metaverse industry. However, Meta has dialled down its visions and implemented cost-reducing methods, such as laying off several staff members.
The CEO of Meta, Mark Zuckerberg, had previously mentioned that 2023 would be a year of efficiency for the firm. However, many speculate that the company can only hold out for a little longer if it continues to experience such losses.
The tech billionaire also disclosed that Meta would continue to focus on the metaverse and AI – as it had been in the past.
A Summary of Meta’s Finances in 2022 and 2023
Meta made $28.645 billion in revenue in the year’s first quarter. Reality Labs contributed $339 million to the firm’s earnings.
Although the company’s primary income source remains advertising, its CEO is determined to escalate Meta’s moves and presence in the metaverse. Investors worry about this as the value of Meta’s stock reduced drastically in 2022.
In 2022, the company’s metaverse division witnessed a loss of $13.7 billion with little to no results to show for it. In the first quarter, Meta’s Reality Labs recorded a loss of $3 billion and a loss of $2.8 billion in the second quarter. In the last two quarters, the division saw losses of $3.7 billion and $4.3 billion.
Meta’s Experiences With The Metaverse
Meta purchased Luxexcel at the beginning of the year to keep itself updated with developments in virtual and augmented realities. While Meta has developed an interest in AI like most companies in the tech industry, the firm was quick to halt its efforts for NFTs on Instagram and Facebook in March.