Meta’s Reality Labs reports revenue of $1B, losses of $4.6B

Reality Labs notched over $1 billion in revenue during Q4 last year, up from $727 million in 2022’s Q4

February 1, 2024 05:08 pm

Meta CEO Mark Zuckerberg | Frederic Legrand – COMEO/Shutterstock modified by Blockworks

Meta’s metaverse division is still raking in losses but managed to impress with revenue last quarter.

Reality Labs, the company’s metaverse-focused team, notched losses of roughly $4.6 billion, though the unit took in revenue of over $1 billion.

To put that figure into perspective, Reality Labs reported revenue of $727 million in the same period a year earlier.

Newsletter

Subscribe to Blockworks Daily

Meta attributed the third-quarter revenue to sales of the Quest 3 — its newest virtual reality headset — during the holiday season.

For the 12-month period ending Dec. 31, the unit reported losses totaling $16.1 billion.

“We’ve made a lot of progress on our vision for advancing AI and the metaverse,” CEO Mark Zuckerberg said.

However, the company also warned in its earnings that it expects “operating losses to increase meaningfully year-over-year due to our ongoing product development efforts in augmented reality/virtual reality and our investments to further scale our ecosystem.”

The stark warning isn’t new, with the company disclosing similar warnings in previous quarterly reports.

“We’ve invested heavily in both AI and the metaverse and will continue to do so,” Zuckerberg said on the Thursday earnings call.

The company reiterated last year that it will continue to focus on its metaverse vision. The company made its ambitions clear back in 2021 when it changed its name to Meta from Facebook.

In July of last year, the CEO warned that he “can’t guarantee” that he’s ”going to be right about this bet,” but that he believes it’s the direction the world is going in.

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Newsletter

Blockworks Daily

Upcoming Events

Digital Asset Summit 2025

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

learn more

recent research

Research

Analyst Takes: Post-Election Insights

With the recent election, it’s clear that there will be a meaningful shift in crypto regulations and legislation. Trump is likely as pro-crypto as a president can be. He launched (multiple) of his own NFT collections and is launching an Aave wrapper called World Liberty Fi. He has also spoken out and mentioned that he wants to make the United States "the crypto capital of the planet" and transform it into the "Bitcoin superpower of the world". He proposed creating a strategic national Bitcoin stockpile alongside support from Senator Cynthia Lummis, promising to retain 100% of all Bitcoin held by the U.S. government. More importantly, we’re likely to see deregulation across the board in a lot of industries, with crypto being one of them - as Trump has committed to keeping the crypto market largely unregulated. Crypto, DeFi in particular, has historically been knee-capped by overreaching and hostile governmental agencies and regulation by enforcement, as evidenced by the plethora of Wells notices and lawsuits over the past few years. With Donald Trump winning the presidency, Republicans taking control of the Senate, and being on the verge of securing the House, we think it’s likely that crypto realizes positive regulatory clarity. Below, you can find our analysts’ takes:

by Boccaccio