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Facebook Reality Labs lost $3.67 billion during Q3 2022

The company anticipates Reality Labs operating losses in 2023 to "grow significantly year-over-year."

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Facebook (META) reported its Q3 2022 results today and among the information shared is mention of how Reality Labs earned $285 million in revenue while losing a staggering $3.67 billion. In the earnings report that was shared, it’s noted that Meta anticipates Reality Labs’ operating losses in 2023 to “grow significantly year-over-year.”

Numbers wise, Reality Labs reported the following during Q3 2022:

Segment Results slide from Facebook (META)'s Q3 2022 earnings report showing revenue and expenses for Reality Labs
© Facebook (META)

Opening the earnings report, Meta CEO and founder Mark Zuckerberg remarks on community growth and engagement, while also touching on challenges the company faces such as revenue growth.

“Our community continues to grow and I'm pleased with the strong engagement we're seeing driven by progress on our discovery engine and products like Reels," Zuckerberg said in the report. "While we face nearterm challenges on revenue, the fundamentals are there for a return to stronger revenue growth. We're approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company."

META stock showing shares at $129.82 each down 5.59 percent today and down 11.61 percent in After Hours trading
© Google Finance

For more from Meta’s Q3 2022 earnings, be sure to read through the full report. And for more Facebook (META) news, check out some of our previous coverage including Facebook (META) Q3 2022 earnings results beating revenue expectations but missing on EPS, and Facebook (META) being ordered to sell GIPHY by the United Kingdom’s Competition and Markets Authority (CMA)

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Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.

From The Chatty
  • reply
    October 26, 2022 1:50 PM

    Morgan Shaver posted a new article, Facebook Reality Labs lost $3.67 billion during Q3 2022

    • reply
      October 26, 2022 1:50 PM

      after hours getting DUNKED on https://www.cnbc.com/quotes/META

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      October 26, 2022 2:05 PM

      What are they doing over there? Horizon Worlds is ass and it’s not like they’re selling so many Quests below cost that the losses pile up in the billions

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        October 26, 2022 2:44 PM

        It's basically an R&D lab plus includes a variety of studios making games and other content. They reportedly had 17,000 employees in the division. That's probably like $12bn+/year in headcount (and facilities) so with relatively few sales of Quest hardware and software (single digit millions per quarter) it's mostly salary that's not being made up for in sales yet.

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          October 26, 2022 3:02 PM

          Quest hardware sales have been fine, it's software that's killing them. I'm remarkably happy that I was able to get a solid PC VR headset for cheap, but it was maybe not the smartest move on Meta's part to make it so easy to access an infinitely better software library then what they have available on their hardware by default.

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            October 26, 2022 5:13 PM

            “Fine” relative to what metric?

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              October 26, 2022 7:05 PM

              All of their competitors in the VR space. Sales have slowed as the hardware has aged and the price increase definitely hurt momentum, but for better or worse they are still pretty much the only game in town for AIO consumer VR (in the US, at least) and their sales numbers reflect that. PSVR2 could very well change that, although it would still be for a different market segment.

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        October 26, 2022 3:02 PM

        R&D on new headset tech. Holographic lenses, eye tracking, varifocal displays - all sorts of stuff that would actually make a real difference either in display quality or headset shape/convenience.

        If it wasn't Facebook I'd love to work there.

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      October 26, 2022 3:20 PM

      How could they fail with product managers like these?

      https://twitter.com/TikTokInvestors/status/1584593828769845248

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        October 26, 2022 4:03 PM

        She obviously has many years of experience managing products.

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        October 26, 2022 5:57 PM

        Is this a teaser for a new season of Silicon Valley?

      • reply
        October 26, 2022 5:58 PM

        I mean holy lord. I honestly hate confirming stereotypes but that could not have been more vapid.

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        October 26, 2022 6:08 PM

        This isn't real, right? Looking at lower paid tech product manager positions online for much smaller companies, it looks like you need significant experience and training to do that job.

        How does a 23 year old end up in a position like that at Meta?

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        October 26, 2022 6:29 PM

        FAANG only hires the best talent lol

      • reply
        October 27, 2022 4:00 AM

        I don't see anything wrong here? She wakes up, works on herself, goes to the office, eats a bite, settles into work, works, goes home and does something fun.

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          October 27, 2022 5:25 AM

          Yeah, in the defense of this style of video I'd have to say that if she recorded her actual workday (besides violating NDAs) it would be extremely uninteresting content. These are the few moments between boring meetings and tedious office work.
          On the other hand, this style of video does a great job of creating class resentment and whether it means to or not, makes her job look like overpaid fun time.

      • reply
        October 27, 2022 6:22 AM

        23 YO as a PM lol

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        October 27, 2022 7:43 AM

        She shared it on TikTok, not FB or Instagram lol

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      October 26, 2022 3:30 PM

      Like I get the Facebook hate (I really do), but there is a part of me that thinks it is fucking amazing that we have a company willing to spend billions on developing AR/VR. They are legitimately pushing forward a lot of tech that as lifelong gamers we have dreamed for. I don’t give a shit about their stock or business plan and I worry that all this public pressure is going to derail what is an amazing effort to expand how we experience the world. Do we just want Apple to do everything? Best case they both compete and we all win.

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        October 26, 2022 5:11 PM

        yea pretty much. the money just goes to apple which isnt that much better. hopefully apple invests a bunch in vr too though

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          October 26, 2022 5:16 PM

          A successful Apple headset is simultaneously the best thing that could happen for AR and likely one of the worst things that could happen for VR. People lose their shit now about the idea of a Meta-dominated metaverse, but an Apple-dominated VR sector would effectively kill innovation in that space as developers rush to join their anti-consumer walled garden.

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            October 26, 2022 5:23 PM

            Apple hardware is going to be at least double the cost of quest 2.

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              October 27, 2022 3:35 AM

              And they will make sure their ecosystem doesn't work quite right with other headsets.

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        October 26, 2022 5:41 PM

        I remember when FB bought Oculus and people (on Oculus reddit sub) were saying that they wished MS or Google had bought them instead. No way those companies would have spend that much without a quick return. Google would have killed it years ago, probably MS too. And Oculus on its own wouldn't have the cash to keep up the R & D, so it's doubtful we would have gotten Quest or Quest 2.

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        October 26, 2022 5:56 PM

        eh, they're spending that money so they can turn it into an ad-riddled, heavily monetized pile of shit

        i get the sentiment in a general sense, but in the hands of meta it's nothing to celebrate

        horrible company

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        October 26, 2022 6:02 PM

        Facebook should die. Leave nothing. They are good for nothing.

        Facebook parent company fined $25M for WA campaign finance violations

        https://www.seattletimes.com/seattle-news/politics/facebook-parent-company-fined-25m-for-wa-campaign-finance-violations/

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        October 26, 2022 6:03 PM

        What has FB done to advance the tech forward? I honestly don't know much about VR but all I know of is them pushing FB login requirement on Oculus.

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          October 26, 2022 7:12 PM

          Cheapest headset that's still of good quality and not some android crap. Integrated headset and computing, making it almost wireless.

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            October 26, 2022 7:44 PM

            Yeah the quest 2 is good hardware at a good price point. Also I'd point out that VR has many applications beyond gaming and they are pushing in those areas as well.

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            October 26, 2022 8:47 PM

            I hate to rain on your parade here given this is the only vaguely positive subthread about my employer but it actually runs android. There’s a set of engineers desperate to help avoid the stigma of android with quest and I think your comment is evidence they’re doing at least an okay job.

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          October 26, 2022 7:53 PM

          their prototypes have set the stage for some really good headsets in 2030. other companies are just gonna ride the coattails

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            October 26, 2022 8:39 PM

            Eh, there are other companies doing most of what is in the Quest Pro, either now or very soon.

            There are some up and comers I'd keep an eye on.

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              October 26, 2022 8:47 PM

              That said their R&D contributions can't be understated. I don't know of anyone else with viable varifocal displays - even MagicLeap hasn't been able to get theirs into a product.

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          October 27, 2022 7:14 AM

          Carmack was at FB working on it and did tons of stuff.

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        October 26, 2022 6:59 PM

        At this point I will point out that the highest performing headset at this moment does not come from Facebook.

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        October 26, 2022 7:09 PM

        Oculus wasn't about to go bankrupt or anything. It would be slower going, but we'd still have Windows MR, Steam VR, Playstation VR, etc.

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        October 26, 2022 7:12 PM

        That’s no reason to cut them any slack.

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          October 26, 2022 7:45 PM

          I can both hate and love them for different things

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            October 27, 2022 5:51 AM

            Sir, this is the internet. You waived your rights to nuance when you signed a contract with your ISP.

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        October 27, 2022 3:20 AM

        I agree, but then, I just don't trust Facebook to make evocative, culturally important content. It's gonna be mass-market shit.

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        October 27, 2022 7:31 AM

        I essentially see this as a win-win -- VR tech is moved forward and it (hopefully) destroys facebook in the process.

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      October 26, 2022 6:46 PM

      Get fucked.

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      October 27, 2022 6:04 AM

      For those keeping score - that’s about $40mm per day - of losses.

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      October 27, 2022 6:20 AM

      Poor zuck. VR is still niche.

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      October 27, 2022 6:37 AM

      Facebook needs a new way of reading the exact same content it's been producing the same content for the last few years not VR.

      Augmented VR facebook? I dunno. Something for reading lots of text that's NOT VR.

      Fuck Facebook.

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      October 27, 2022 7:51 AM

      Based on their presentation, Facebook's vision for VR feels to me like a knowledge worker dystopia. Strap this heavy gadget to your face and we'll monitor your every perception for the next 8 hours. Any deviation from productivity will be logged. feek that noise! I'd much prefer a lens projection on a normal pair of glasses that shows neat data points in my FOV or sends little vibration pulses behind my ear informing me of the real world around me than a blinder on my face.

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