Meta Lost $2.8 Billion in Metaverse Department

MetaversePlanet July 28, 2022Last Updated: August 14, 2024

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In its latest earnings report, Meta has disclosed a substantial loss of $2.8 billion within its metaverse division.

The financial statement, released today, highlights the performance of Meta’s Facebook Reality Labs (FRL) division, encompassing augmented and virtual reality operations, which incurred the reported loss of $2.81 billion during the second quarter.

It is noteworthy that analysts had projected a slightly higher loss of $3.67 billion for this period.

Meta Lost $2.8 Billion in Metaverse Department

While FRL generated $695 million in revenue during the first quarter, this figure dwindled to $452 million in the second quarter, constituting a small fraction of Meta’s overall revenue of $28.4 billion.

Despite the financial setback, Meta anticipates a further decline in Reality Labs revenue during the third quarter compared to the second quarter. Mark Zuckerberg, the CEO of Meta, emphasized the company’s intensified focus on metaverse and the real growth it envisions.

Zuckerberg had previously mentioned, during the first-quarter report, that the company’s metaverse endeavors have successfully laid a strong foundation for the developments expected in the 2030s.