huge image: Mark Zuckerberg’s Metaverse ambitions nonetheless seem like a cash pit, having price Meta tens of billions of {dollars} over the previous two years. The firm’s 2022 year-end monetary assertion compounded Reality Labs’ earlier vital losses, however Meta’s management stays dedicated to the enterprise.
Meta’s monetary statements for the fourth quarter of 2022 present that losses in its VR division have elevated in contrast with the extreme money burn within the earlier quarters of this 12 months. However, that hasn’t stopped Meta’s inventory from having one in every of their finest days but.
Reality Labs misplaced $4.3 billion within the fourth quarter of 2022. Including the $3.7 billion burned within the third quarter, the $3 billion sunk within the second quarter and the $2.96 billion wasted within the first quarter, the overall 2022 loss for Meta’s Metaverse division is $13.7 billion. That determine comes on the heels of the $10.2 billion that Reality Labs will lose all through 2021.
As prices swelled final 12 months, CEO Mark Zuckerberg insisted that the corporate’s efforts would repay over the subsequent decade, and that considering hasn’t modified. During the fourth-quarter earnings name, CFO Susan Lee stated Meta expects Reality Labs to lose extra money in 2023, however will proceed what it sees as a long-term funding.
Last 12 months, Meta launched its newest VR headset for enterprise operations, the $1,500 Quest Pro. The firm is anticipated to launch a less expensive consumer-oriented mannequin this 12 months to succeed the Meta Quest 2. However, gross sales and shipments of VR headsets are down in 2022 in comparison with 2021, casting doubt on Meta’s give attention to the area.
Meta’s VR division additionally misplaced legendary programmer John Carmack final 12 months. He left the corporate in December after repeatedly expressing issues concerning the inefficiency of his strategy to constructing the Metaverse. Meta additionally laid off 11,000 staff final month, about 13% of its workforce.
The grim numbers from Reality Labs got here with Meta’s annual and fourth-quarter income and income losses. Fourth-quarter income fell 4% to $32.2 billion, whereas web earnings for the quarter fell 55% to $4.7 billion. Total income in 2022 is down 1% to $117 billion, and full-year web earnings is down 41% to $23 billion.
While the numbers appeared bleak, they beat analysts’ expectations. The firm’s inventory rallied this week on the half-full outlook and Meta’s announcement of a $40 billion share buyback. Meta’s market cap jumped 27% in someday, or greater than $100 billion.
While the corporate’s inventory had its finest day in a decade this week, that solely put it again the place it was final June. Meta has but to start out recovering the $500 billion in worth it has misplaced for the reason that finish of 2021.
