Meta’s Reality Labs posts $4.2 billion loss in first quarter

Meta is continuous to sink billions of bucks 1 / 4 into the metaverse.

In its first-quarter profits document on Wednesday, Meta mentioned its Reality Labs unit recorded an running lack of $4.2 billion within the length whilst bringing in $412 million in gross sales. Analysts had been projecting an running lack of $4.6 billion on income of $492.7 million.

Meta’s Reality Labs unit is chargeable for the corporate’s Quest-branded digital fact headsets and Ray-Ban Meta Smart Glasses. It’s the important thing trade unit that anchors CEO Mark Zuckerberg’s plans to construct a brand new computing platform involving virtual worlds available by the use of VR and augmented fact units.

Reality Labs has reported cumulative losses of greater than $60 billion since past due 2020, together with a lack of $3.85 billion within the first quarter of closing yr. In past due 2021, Zuckerberg modified the identify of his corporate from Facebook to Meta.

Wall Street has puzzled Meta’s large spending at the metaverse, which Zuckerberg has mentioned may take a few years to transform an actual trade. The corporate should now additionally take care of sweeping new price lists from President Donald Trump and the most likely building up in prices that may apply, doubtlessly resulting in higher-priced units.

Last week, Meta mentioned that an unspecified selection of Reality Labs workers had been laid off. Those staff had been a part of the Oculus Studios unit, which creates VR and AR video games and content material for Quest VR headsets.

“Some teams within Oculus Studios are undergoing shifts in structure and roles that have impacted team size,” a Meta spokesperson mentioned in a commentary in regards to the cuts. “These changes are meant to help Studios work more efficiently on future mixed reality experiences for our growing audience, while still delivering great content for people today.”

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