February 5, 2024

Meta’s Reality Labs Records All-time High Losses in Q4 of 2023

Reality Labs

Reality Labs

Meta’s subsidiary, Reality Labs, is focused on developing the metaverse. In the last quarter of 2023, the company recorded an operating loss of $4.65 billion.

Meta is doubling down on its bet on the metaverse despite incurring high expenses to develop virtual reality. According to the company’s fourth-quarter earnings report, Reality Labs suffered a net loss of $4.65 billion in Q4 2023, which is an 8.5% increase compared to Q4 2022 and the largest loss the company’s subsidiary has witnessed so far.

Meta’s financial reports indicate that Reality Labs’ cumulative loss has surpassed the $42 billion mark since late 2020. However, there was an increase in Meta’s revenue within Reality Labs, soaring from $727 million in Q4 2022 to over $1 billion in Q4 2023, as Meta introduced its Quest 3 VR headset last fall.

“We had a good quarter as our community and business continue to grow. We’ve made a lot of progress on our vision for advancing AI and the metaverse,” Meta founder and CEO Mark Zuckerberg.

Meta has been promoting the concept of the metaverse for some time now. Zuckerberg has expressed his commitment to making Meta a leader in the development of the metaverse. The metaverse is a virtual space that is immersive and interconnected and can be accessed by users through the internet.

According to ResearchAndMarkets’ research, the global metaverse market is expected to grow significantly, reaching $322 billion by 2030. Following the earnings report’s release, Meta’s shares surged by 15% to $453 in extended trading, according to Google Finance.

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