Meta’s metaverse-focused Reality Labs posts $2.8 billion loss

In April–June 2022, the metaverse-related Reality Labs unit within Meta posted a loss of $2.81 billion (-$3.67 billion in the first quarter).

During the reporting period, revenue declined from $695 million to $452 million with a forecast of $431 million. For comparison, the company-wide figure was $28.8 billion. Management expects a decline in Reality Labs’ revenue in the third quarter.

“We are focused on long-term investments, including […] the metaverse, which will make us stronger after we emerge from the downturn. […] The development of these platforms could, over time, generate hundreds of billions, if not trillions, of revenue,” — said Meta’s CEO Mark Zuckerberg.

The head of the company pledged to launch a web version Horizon Worlds later this year. He also noted positive feedback from specialists regarding the devices being developed under Project Cambria.

From August 1, Meta will raise prices for the Meta Quest 2 VR headsets by $100 and revise the upper price cap for peripheral products.

In 2021, Reality Labs posted a loss of $10.2 billion on revenue of $2.3 billion.

Following the earnings release, Meta’s shares closed post-market on July 27 down 4.65%.

The market mood could also have been influenced by a FTC filing against Meta.

The regulator intends to block the company’s planned August 1 acquisition of startup Within Unlimited, which develops the fitness app for virtual reality Supernatural.

“Meta plans to expand its virtual reality empire with the help of this app, which demonstrates the value of the space for users. The company would be one step closer to its ultimate goal — owning the entire “Metaverse”,” — the statement said.

Earlier, a former Meta employee warned about privacy threats in the Reality Labs space.

Earlier the company announced opening a store to demonstrate the metaverse.

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