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

article-image

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

share

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. 

Read more: Meta’s metaverse division bleeds $3.7B in Q2

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.

Read more: It’s Vitalik’s birthday today — and he’s optimistic on crypto-AI integrations

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.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile

article-image

The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally

article-image

While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders

article-image

Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume

article-image

DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit