With a $3.67 billion loss reported for the third quarter of 2022, Big Five technology firm Meta is still burning through funds through Reality Labs, its Metaverse research and development division, and predicts that losses will worsen next year, as reported by Cointelegraph.
According to Reality Labs’ third-quarter 2022 earnings report, which was released on October 26, the company suffered its largest quarterly losses ever since reporting began in the fourth quarter of 2020. The third-quarter revenue of $285 million was also the lowest ever for the company during that period.
With its third consecutive quarterly loss for Reality Labs, totaling $9.44 billion so far in 2022, Meta is on track to surpass its metaverse play’s losses from 2021, which came in at just under $10 billion.
“We do anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year. Beyond 2023, we expect to pace Reality Labs investments such that we can achieve our goal of growing overall company operating income in the long run,” Meta CFO Dave Whener, said.
Overall, the company’s quarterly revenue of $27.71 billion slightly beat Wall Street analysts’ estimates, while its profits per share of $1.64 fell short of their projection of $1.88.
According to Yahoo Finance, Meta’s stock price has down over 19.5% in after-hours trading as of the time of this writing, with the value of the company’s shares down over 61.5% since the year’s beginning.
(With insights from Cointelegraph)
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