Meta Reality Labs Records 1 Billion Dollars in Revenue and 4.65 Billion Dollars in Losses for Q4 2023

Crypto News– Meta Reality Labs reported over $1 billion in revenue and $4.65 billion in losses during the fourth quarter of 2023, according to the tech giant’s Q4 ’23 earnings report released on Thursday.

With revenue reaching nearly $1.1 billion, up from $727 million in the same period in 2022, Q4 of 2023 stands out as one of the best quarters in terms of revenue for the virtual and augmented reality (VR/AR) research arm. However, the $4.65 billion loss represents the highest quarterly loss yet, increasing from $4.48 billion in the same period in 2022.

Meta Reality Labs Records 1 Billion Dollars in Revenue and 4.65 Billion Dollars in Losses for Q4 2023

Analysts polled by StreetAccount had estimated the division’s quarterly losses at $4.26 billion and its quarterly revenue at $768.2 million. The latest figures bring Reality Lab’s losses since the fourth quarter of 2020 to over $42 billion, with $16.1 billion lost in 2023 alone, marking a 17.5% increase from the previous year. The company anticipates further losses.

“We expect operating losses to increase meaningfully year-over-year due to our ongoing product development efforts in augmented reality/virtual reality and our investments to further scale our ecosystem,” said Meta’s Chief Financial Officer Susan Li.

Reality Labs also reported total revenue of almost $1.9 billion in 2023, with more than half coming from sales of its Meta Quest 3 mixed reality headset, released early in Q4.

VR and AR are essential components of the Metaverse, which has been a key focus for the company since its rebranding from Facebook to Meta in 2021. Meta’s Founder and CEO Mark Zuckerberg also touched on AI, another major part of their long-term vision.

“These days, there are a lot of questions about AI that I get, and that field is moving very quickly,” Zuckerberg said. “I still expect that this next generation of AR VR and [mixed reality] computing platforms to deliver a realistic sense of presence that will be the foundation for the future of social experiences.”

Overall, Meta’s 2023 revenue surpassed estimates from Wall Street research firm Zacks, rising 16% from 2022 to $134.9 billion last year.

The company also announced its first-ever dividend of 50 cents a share on March 26 and intends “to pay a cash dividend on a quarterly basis going forward, subject to market conditions and approval by our board of directors.”