-2.9 billion dollars for Meta – Marc Zuckerberg’s painful metaverse

A metaverse worth gold! – Recently, Meta celebrated the opening of its Meta Store, the test space of its “Horizon World” metaverse. On the strength of development and research that are progressing in web3 technologies, the company formerly known as Facebook, however, deplores a loss of 2.9 billion according to its report for the first quarter of 2022. Let’s decipher.

Meta’s first quarter results were released on Wednesday, April 27. In this report, the company realizes the loss of $2.9 billion. The offending ? The metaverse and more specifically Reality Labs.

Reality Labs is a section of Meta that is focused on metaverse development. From significant sums have been spent for the development of virtual and augmented reality products and services. The biggest expense for Reality Labs is more specifically the development of the Cambria virtual reality headset. In short, Reailty Labs is working on the social space of tomorrow in which we can, for example, work and play.

Metaverse Development Costs Company $2.9 Billion

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Let’s go back a year and compare. In 2021, the company then records a loss of $1.8 billion in the same quarter. In the same year, the social media giant also recorded an overall loss of around $10 billion, including 4 billion already due to costs for research and development. However, this bad start does not seem to worry Marc Zuckerberg, leader of Meta. These losses were even according to himpredictable.

Several data in the report point in this direction. First of all, Reality Labs also records 695 million in revenue during the first quarter of 2022. This figure is among other things enabled thanks to the revenue from virtual reality headsets and the Meta Portal (artificial intelligence development). Then, the social network giant recorded a turnover of $27.9 billion, up from $26.1 billion in 2021 always in the same quarter.

“We expect total spending for 2022 to be between $87 billion and $92 billion, down from our prior guidance of $90 billion to $95 billion (…) We project spending growth in 2022 to be driven primarily by the Family of Apps segment, followed by Reality Labs. »

Meta announces that it lost $2.9 billion in the first quarter of 2022.
The metaverse of Meta: Marc Zuckerberg’s money pit?

For the leader it is obvious that it is not now that the metaverse, Horizon World and the work of Reality Labs will bring him benefits. It is rather for the company to bet in the development. In these statements Marc Zuckerberg confirms his confidence in the development of a virtual world, social workspace:

“As such, over the next few years, our goal from a financial perspective is to generate sufficient operating revenue growth from Family of Apps to fund investment growth in Reality Labs, while increasing our overall profitability.” »

On the stock market, Meta’s shares have been gray since there have been fewer users on Facebook. The quarterly report did, however, restore some color to the market. Resourceful, Meta recently said it takes almost 50% of sales fees from its future marketplaceenough to fill the company’s coffers again.

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-2.9 billion dollars for Meta – Marc Zuckerberg’s painful metaverse

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