Reality Labs, a subsidiary of Meta dedicated to the advancement of the metaverse, experienced a substantial operating loss of $4.65 billion in the final quarter of 2023.
Meta continues to invest heavily in the metaverse, resulting in record-high expenses for virtual reality development in Q4, 2023. As outlined in the company’s fourth-quarter financial report, Reality Labs incurred a net loss of $4.65 billion during this period, marking an 8.5% increase from Q4 2022 and the largest loss observed by the subsidiary thus far.
Overall, Reality Labs has now accumulated losses exceeding $42 billion since late 2020, as disclosed in Meta’s financial statements. Despite these significant losses, there was a noteworthy increase in revenue within Reality Labs, rising from $727 million in Q4 2022 to over $1 billion in Q4 2023 following the launch of Meta’s Quest 3 VR headset last autumn.
Meta has been actively promoting the metaverse, with Zuckerberg emphasizing the company’s dedication to becoming a leader in its development. The metaverse concept involves immersive virtual spaces interconnected via the Internet, with the global market projected to reach $322 billion by 2030, according to ResearchAndMarkets.
After the release of the earnings report, Meta’s stock surged by 15% to $453 in after-hours trading, as reported by Google Finance.