Reality Labs, Meta’s subsidiary focused on developing the metaverse, recorded an operating loss of $4.65 billion in the last quarter of 2023.
Meta keeps doubling down on its bet on the metaverse as its expenses to develop virtual reality hit an all-time high in Q4, 2023. According to the company’s fourth-quarter earnings report, Reality Labs suffered a net loss of $4.65 billion in Q4 2023, an 8.5% increase compared to Q4 2022 and the largest one the company’s subsidiary witnessed thus far.
In total, Reality Labs’s cumulative loss surpassed the $42 billion mark since late 2020, according to Meta’s financial reports. Nevertheless, there was a notable uptick in Meta’s revenue within Reality Labs, soaring from $727 million in Q4 2022 to over $1 billion in Q4 2023, as Meta debuted 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.”
Mark Zuckerberg, Meta founder and CEO.
Meta has been pitching the metaverse for a while now, as Zuckerberg has repeatedly expressed his commitment to the company to become a leader in the development of the metaverse.
The concept of the metaverse involves immersive, interconnected virtual spaces accessed by users through the Internet. As per research done by ResearchAndMarkets, the global metaverse market is projected to grow massively, reaching $322 billion by 2030.
Following the earnings report release, Meta’s shares soared by 15% to $453 in extended trading, according to Google Finance.
