Mark Zuckerberg’s Meta*, formerly known as Facebook, continues to lose money on high-value projects. The Reality Labs division, together with the parent company, reported about income (it would be more correct to say “about expenses”). For the fourth quarter of 2022, the metaverse generated a $4.28 billion loss. The same period in 2021 brought a $3.3 billion loss.
In total, Reality Labs lost $13.7 billion in 2022.
In the fourth quarter, Reality Labs earned $727 million and posted $2.16 billion in revenue for the full year, down $2.27 billion from 2021. Zuckerberg acknowledged that 2022 has been a difficult year, and also predicted a further increase in Reality Labs losses in 2023. Despite the losses, he does not plan to change his plans and abandon the project:
Our priorities have not changed since last year. The two major technology waves driving our roadmap are artificial intelligence in the short term and the metaverse in the long term.
Meta* will continue to invest in the upcoming Quest 3 and Quest Pro VR headset, which has received a very lukewarm response from reviewers.
Susan Li, Meta*’s CFO, confirmed the CEO’s plans. She explained that the firm plans to continue to invest in this area, as it sees potential in it. And since the investment in the Metaverse is long-term, Meta* will drive overall growth in operating profit to cover losses.
Despite falling revenues and losses, Meta* shares rose about 15% after the release of the quarterly report.
* Meta’s activity is recognized as extremist, banned in Russia by decision of the Tverskoy Court of Moscow dated March 21, 2022.
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