Reality Labs, Meta’s Metaverse-Focused Unit, Lost $2.9 Billion In The First Quarter Of 2022

On Wednesday, Meta Platforms Inc., formerly known as Facebook, announced its first-quarter 2022 results, citing a $2.9 billion loss in its Reality Labs subsidiary, which focuses on the company’s metaverse.

This deficit is higher than the $1.8 billion loss in the first quarter of 2021 – Meta

Reality Labs made $695 million in revenue in the first quarter of this year, up from $534 million in the first quarter of 2021.

“We expect 2022 total expenses to be in the range of $87-92 billion, lowered from our prior outlook of $90-95 billion,” the earnings report states. “We expect 2022 expense growth to be driven primarily by the Family of Apps segment, followed by Reality Labs.”

Reality Labs is a company that develops virtual reality and augmented reality products and services that allow people to socialize, work, and play. Reality Labs reported a loss of more than $10 billion in their fiscal year 2021 earlier this year.

Employee costs, R&D, and costs of things sold accounted for about $4 billion of the losses, according to Meta CFO David Wehner in the company’s February earnings call.

When Meta announced earlier this month that it will take roughly half of the profits from any things sold in the metaverse, it sparked outrage.

According to the study, the company’s overall revenue for Q1 2022 is $27.9 billion, up from $26.1 billion a year ago.

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