Meta Q2 Financial Report: Metaverse Division Reality Labs Lost $7.7 Billion During the Year

Odaily Planet Daily News In the second quarter of this year, Meta Universe-related losses exceeded US$3.74 billion, and the company’s spending on virtual reality business so far in 2023 is US$7.7 billion. Meta's second-quarter 2023 financial report released on July 26 showed that the company's revenue increased by 11% year-on-year to $31.9 billion. Its Metaverse-focused Reality Labs topped $276 million in revenue, the lowest in two years and down nearly 40% compared to the second quarter of 2022. Meta finance chief Susan Li said the decline in Reality Labs' revenue was due to lower sales of its Quest 2 virtual reality (VR) headset. Expenses in the segment rose 23 percent to $4 billion, due in part to higher personnel costs. Reality Labs' operating losses will continue to mount through 2023, Meta said, with VR-related product development work and further investment in its Metaverse contributing to the widening losses. On the conference call, Meta CEO Mark Zuckerberg said the company is "focused on artificial intelligence in the near term and the Metaverse in the long term." He reiterated that Meta will be "fully committed" to its Metaverse and AI investments, saying the two areas are "overlapping and complementary." Zuckerberg also added that the company's artificial intelligence model, Llama, is being used to create a series of products that will help users "create worlds, and the avatars and objects that inhabit them," and said he will announce a new release later this year. Share more information sometime. (Cointelegraph)