LogInDespite incurring losses, Meta remains committed to its Reality Labs division and believes it deserves ongoing and potentially increased investment.
Image credit: Meta
In recent Meta's financial report covering the three months leading up to September 30, the company's VR division experienced a decline in performance. Reality Labs, which is responsible for Meta's VR and metaverse initiatives, specifically, generated $210 million in revenue during this period, marking a 26% decrease compared to the same timeframe last year. Additionally, the division incurred an operating loss of $3.74 billion, slightly higher than the $3.67 billion loss reported in the previous year's quarter.
On a more positive note, Meta's overall financial results for the nine months ending September 30 showed growth. The company's total revenue reached $95 billion, representing a 12% increase compared to the previous year. Furthermore, net income rose to $25 billion, reflecting a 35% year-on-year growth. However, Reality Labs faced challenges, as it reported a 42% decline in revenue, with earnings amounting to $825 million during this nine-month period. The division also incurred a significant operating loss of $11.5 billion, surpassing last year's loss of $9.44 billion for the same duration.
These financial figures shed light on Meta's mixed performance during the assessed periods. While the company experienced substantial overall revenue and net income growth, its VR division, represented by Reality Labs, struggled with declining revenues and increased losses. It remains to be seen how Meta will strategize and address these challenges in the coming months.
Some more news on Meta, recently Mark Zuckerberg gave a virtual reality interview to Lex Fridman using Meta's cutting-edge prototype photorealistic Codec Avatars. If you want to learn more, you can read our article.
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