Meta had its best quarter since 2021 despite losing more money on the metaverse
Meta just had its best quarter since 2021, even as it continues to lose massive amounts of money on the metaverse. In fact, the company said it expects to lose even more money on its efforts in the year to come.
Reality Labs, the Meta division overseeing its virtual and augmented reality projects, lost $3.7 billion during the second quarter of 2023 and generated just $276 million in revenue, according to the company’s latest. And the company, once again, said it expects its metaverse spending to accelerate. CFO Susan Li said that Meta is expecting Reality Labs’ losses to “increase meaningfully” compared with last year, when it lost more than $13 billion on the efforts.
Meta CEO Mark Zuckerberg tried to downplay the significance of the losses. “We remain fully committed to the metaverse vision,” he said during the company's earnings call. When pressed for more details on the company’s metaverse spending, he pointed to the upcomingheadset, which he said would launch at Meta’s Connect event in September. “This is going to be the biggest headset that we've released since 2020,” he said. “There are just a lot of expenses related to bring that to market.
Aside from the metaverse, it was an otherwise a strong quarter for Meta, which reported $32 billion in revenue, an 11 percent increase from last year. Zuckerberg touted Reels, which are now drawing 200 billion views a day across Facebook and Instagram, thanks to the company’s renewed emphasis on AI-driven recommendations. He also highlighted the recent launch of Threads and the company’s Llama 2 large language model.
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