Meta’s Reality Lab division suffers $3.7B loss in Q3
Meta’s concerns have been surging for a while as the company notes another big blow. Reality Lab, Meta’s metaverse branch, recently disclosed facing 3.7 billion dollars in losses during 2022 Q3. The VR and AR operations department has experienced losses while trying to elevate its metaverse features. According to Meta’s year-by-year spending, the company spent over 2x the amount consumed in 2021.
With one more quarter left in 2022, the company is eyeing more capital expenditures and losses. According to the latest report, Reality Lab invested several billion dollars while only bringing back 285 million dollars in revenue. Even leaving Q4, Meta is also expecting losses to grow throughout 2023. Investors have instructed the company to restrict its metaverse spending.
According to Mark, many people disagree with the investment. However, this can be a crucial moment for the company. Thus, it would be a big waste not to focus on areas that will be fundamentally critical in the coming time. Contrary to several experts, Financial officer David Wehner anticipates that beyond 2023, they will increase the overall company operating income.