Reality Labs reported record income, but faced multibillion-dollar losses
Meta's AR, VR and metaspace division, Reality Labs, delivered strong results in the latest quarter despite significant losses. During this period, Reality Labs generated more than $1 billion in revenue from its Quest headsets and Ray-Ban Meta smart glasses.
Reality Labs: Successful Quarter with Big Loss
Revenue Growth and Strong Demand
Although reaching the $1 billion mark is A significant step for the meta version of the company's team, further losses are expected in the future. Reality Labs posted a loss of $4.6 billion in its most recent quarter and more than $16 billion in 2023. Meta's chief financial officer, Susan Lee, said those losses are expected to be even larger year over year due to efforts to development of products in the field of augmented/virtual reality and investments in scaling the company's ecosystem ( source).
Holiday Shopping Drives Success
The fourth quarter, which is the holiday shopping period, is typically most successful for virtual and augmented reality devices. During a conversation with analysts, Mark Zuckerberg suggested that the company's smart glasses were especially in demand, noting a successful collaboration with Ray-Ban manufacturer EssilorLuxottica. He said the company plans to release more devices than planned due to high demand. Zuckerberg also noted the good performance of the Quest 2 headset and the older model, the Quest 3, calling the Quest 3 the most popular mixed reality device.
Overall Meta Results
With the exception of Reality Labs, Meta posted a strong performance in the latest quarter , with revenue of $40.1 billion at the end of 2023 and total annual revenue of less than $135 billion. Facebook's user base has also grown to 2.1 billion daily active users (DAU). Susan Lee said the company will no longer provide data on the number of daily or monthly active Facebook users or "monthly household active people."
Increasing popularity of the Threads application and ambitious plans for Meta
User base of the Meta application - Threads, continues to grow. The service already has 130 million monthly users, up from less than 100 million last fall, Mark Zuckerberg said. He also shared his new ambition of developing artificial general intelligence (AGI) within Meta, adding that this will be a key topic for future work on the company's products.
The next generation of services requires the creation of complete general intelligence. Obviously, to provide the best possible service, we will need models that can reason, plan, encode, remember, and have many other cognitive abilities.
said Mark Zuckerberg.
Answers to questions
Which division of Meta deals with AR, VR and metaspace?
Meta's AR, VR and metaspace division is called Reality Labs.
Which products from Reality Labs helped the company generate over billion in revenue in the last quarter of 2023?
Thanks to Quest headsets and Ray-Ban smart glasses, Meta Reality Labs generated more than $1 billion in revenue in the final quarter of 2023.
- Reality Labs: Meta division, which develops products in the field of augmented/virtual reality and metaspace.
- Quest: Virtual reality headsets created by Reality Labs.
- Ray-Ban Meta: Smart glasses developed by Reality Labs in collaboration with EssilorLuxottica.
- Meta: Company that owns Reality Labs, Facebook and other platforms.
- Threads: Meta app, which has 130 million monthly users and is used for communication.