Susan Li, Meta’s Chief Financial Officer, stated during a recent earnings call that the company foresees a significant year-over-year increase in Reality Labs’ losses.
Despite strong quarterly revenue results, Reality Labs, Meta’s VR/AR research arm, reported a Q4 loss of $4.65 billion in Meta’s fourth-quarter results released on Feb. 1.
This marks Reality Labs’ largest operating loss in a quarter since Meta started including its financials in reporting during the fourth quarter of 2020.
In 2023, Reality Labs’ total revenue was just under $1.9 billion, with the fourth quarter accounting for more than half of the year’s revenue.
Reality Labs’ total operating loss in 2023 was $16.1 billion, a 17.5% increase from the previous year.
During the earnings call, Meta’s CEO Mark Zuckerberg attributed Reality Labs’ revenues to a robust holiday season for its VR headsets, particularly highlighting the successful launch of the latest Quest 3 on October 10, 2023.
Zuckerberg emphasized the importance of AI and the metaverse to the company’s long-term strategy and signaled that it would continue to invest significantly in these areas.
“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.”
Meta’s Chief Financial Officer, Susan Li, anticipates a substantial year-over-year increase in Reality Labs’ losses. This projection is attributed to ongoing investments in AR and VR product development, emphasizing the company’s commitment to scaling its ecosystem.
According to Google Finance, Meta’s stock price remained unchanged during the trading day but jumped by over 15% to around $455 after hours on Feb. 1.
Meta’s full-year revenue for 2023 was $134.9 billion, beating the expectations of Zacks Research and showing a 16% increase from its 2022 figures.
Meta plans to pay its first-ever dividend of 50 cents per share on March 26 and will continue to issue quarterly dividends going forward.
