/industry-wired/media/agency_attachments/2024/12/04/2024-12-04t130344212z-iw-new.png)
/industry-wired/media/agency_attachments/2024/12/04/2024-12-04t130332454z-iw-new.jpg)
/industry-wired/media/post_attachments/wp-content/uploads/2022/05/Is-Metaverse-Becoming-Too-Expensive-for-Zuckerberg.jpg)
Meta released its Q1 2022 earnings call with Reality Labs witnessing a US$2.9 billion loss
Meta platforms Inc., previously called Facebook Inc., posted its first-quarter earnings for this year, with Metaverse oriented Reality Labs division posting escalated losses. Meta’s Reality Labs division posted a whopping loss of US$2.9B during its first-quarter earnings call, but Mark Zuckerberg is affirmative regarding the future.
As a whole, the revenue of Reality Labs was beyond the expectation, experiencing mammoth revenue streams in the initial quarter of this year. During February, Meta witnessed the greatest daily crash in share market history, as US$251 Billion faded away from its total market capitalization. All-inclusive revenue streams by Reality Labs were beyond expectations, witnessing US$695 Million in revenue during the initial quarter of 2022 from the sales of stuff such as Meta Portal hardware and virtual reality headset. During an earnings call, Mark Zuckerberg, CEO of Meta stated that damages in this division are to be anticipated, thanks to the fact that Reality Labs is still prominently concentrated on R&D for a series of hardware and software products like Project Cambria. Mark Zuckerberg stated that he is well aware of how much this will cost to develop this, it is something that has never been developed before. And it is the latest paradigm for social connection and computing.
“I recognize it’s expensive to build this, it’s something that’s never been built before. And it’s a new paradigm for computing and social connection,” said Zuckerberg.
He offered a statement saying that the organization anticipates being meaningfully improved at monetization than others in the sector, and anticipates that it may become a viable advantage for the platforms they build.
Billion Dollar loss in the Previous Year?
As per the financial statements earlier this year, Reality Labs experienced about US$10 Billion of damages throughout 2021, with about US$4 Billion of damages owing to worker costs and R&D. All-inclusive, the organization's total revenue for the initial quarter this year is US$27.9 Billion from US$26.1 Billion during the initial quarter of the previous year. Meta’s quarterly financial report was well received by the market, with the organization's shares value escalating by 18% during after-hours trading. During February, Meta got inflicted by the greatest loss it has faced in its history, as US$251 Billion got faded away from its entire market cap. The crash came in the wake of total daily active users falling by roughly 1 million.