With Meta (formerly known as Facebook) having announced its Q1 2023 earnings results, the company took some victory laps with some winning stats for the quarter, but it wasn’t all good news. At this point, Meta Reality Labs has become a recurring loss leader for the company and it seems that continues into Meta’s fiscal 2023, where the division was responsible for the loss of $3.99 billion USD.
Meta released its Q1 2023 earnings results report on April 26, 2023, via its investor relations website. It was on Page 9 of the press release for the results where Meta Reality Labs stats were reported. The company lost $3.99 billion on Reality Labs operations while only recouping a revenue of around $399 million. While not the worst loss for the division on a quarter, it continues to be a trend for Reality Labs, even following cost-cutting measures which saw over 11,000 employees laid off, including workers in the Reality Labs division.
The trend for Reality Labs losing money per quarter was responsible for $2.8 billion in losses in Q2 2022, $3.67 billion in Q3 2022, and $4.28 billion in Q4 2022, making for a total loss of $13.7 billion throughout its fiscal 2022. Meta leadership has previously stated that as it continues to stay the course and develop virtual reality hardware, software, and metaverse applications, it expects that Meta Reality Labs will continue to lose money for the company. This sentiment was also echoed in Meta’s Q1 2023 earnings results.
With Meta having launched the $999.99 Meta Quest Pro HMD and Quest 3 rumored to be on the way, Meta is likely to be right on losses. Nonetheless, stay tuned for further updates and reporting as we continue follow tech companies on the release of their quarterly earnings results.