A few months after Facebook changed its corporate name to meta, the company has reported a loss of more than $10 billion after scaling its development in the metaverse sector.
Such large-scale losses emerged as Meta looks to accelerate its operations in AR/VR technology, something its founder and CEO Mark Zuckerberg envisions as the future of the internet.
In its fourth-quarter financial results posted Wednesday, Meta’s Reality Labs division, which oversees the development of augmented and virtual reality operations, has reported a growing loss of $10.2 billion for the year 2021.
Meta had announced plans to reveal the financial results of Facebook Reality Labs (FRL) during its third-quarter earnings release of 2021. At the time, the company noted that it had dedicated “significant resources” towards its newest division, and the disclosure would offer additional information on the performance of FRL.
According to the latest results, FRL has posted a revenue of $2.3 billion in 2021 whilst the social media giant’s cumulative earnings from its apps, including Facebook, Instagram, and Whatsapp, roughly amounted to $116 billion. Meta’s share price plunged by 22% following the revelation of its financial results.
Nonetheless, the recent losses have not deterred Meta’s plans in any way, which recently shut down its stablecoin project Diem after facing multiple regulatory hurdles. The company’s CFO said during the earnings call that operating losses of Reality Labs are expected to “increase meaningfully” in 2022 as well.