The founder and CEO of Meta, Mark Zuckerberg says the company has no plans to change its long-term strategy for the metaverse, even though operating losses from its Reality Labs business will peak in 2022..
On February 1, Meta released its results, showing that Reality Labs lost $13.7 billion in 2022, the largest annual losses ever recorded by its metaverse construction division..
The fourth quarter was especially costly, as the division lost nearly $4.3 billion, also the biggest quarterly loss within the department since the financials of the business were first published.
In the February 1 earnings call, Zuckerberg was adamant about the company’s metaverse strategy.. Responding to a question about how business efficiency applies to Reality Labs, he replied:
“None of the signs I’ve seen so far suggest that we should change Reality Labs’ long-term strategy.”
He added that later in 2023, the company would launch another “next-generation consumer headset” following the October launch of its Quest Pro virtual reality (VR) headset..
Meta’s CFO Susan Li also harped on the Reality Labs business, echoing Zuckerberg’s remarks on the third-quarter earnings call.according to which the losses in the business would increase in 2023.
“We still expect our full-year losses in Reality Labs to increase in 2023, and we will continue to invest significantly in this area given the significant long-term opportunities we see.”
Meta’s global fourth-quarter revenue was $32.1 billion, beating Wall Street expectations.
Better-than-expected revenue figures sent Meta’s share price soaringearning nearly 19.5% on after-hours trading at the time of writing, according to Yahoo Finance.
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