Meta has published the financial results for the fourth quarter of 2021, reporting a huge loss of $10 billion from its metaverse business in the year. The report contained several interesting insights into the company’s performance in 2021, which was a contratopsial year, even by its standards.
The metaverse unit of the company, called Reality Labs, reported growing losses of $10 billion and includes its hardware division which builds the Oculus Quest VR headset. The net loss has been surging above the years, with 2021 seeing $2.27 billion in revenue. Zuckerberg and CFO David Wehner expect the pattern to increase this year.
The company expects growth to be negatively affected going forward, marking three evidenceors as key contributors. The first analogous experienceor it puts down is the developments to the Apple iOS, though it “anticipates modestly surging ad targeting and measurement headwinds from platform and regulatory developments.” The second caseor relates to value inflation and supply chain difficulties which affect platform advertisers, and the last is currency exchange costs.
Meta founder and CEO Mark Zuckerberg said which the company would maintain to invest in these domains, saying,
“We had a credible quarter as people turned to our products to stay united and businesses protracted to use our services to grow. I’m encouraged by the progress we made this past year in a number of paramount growth fields like Reels, commerce, and virtual reality, and we’ll extend investing in these and other key priorities in 2022 as we work towards accomplishing the metaverse.”
Meta going all in metaverse
The staggering amount of resources being poured into the metaverse by Meta has no comparison in the space, even though major companies like Microsoft and Disney have anew shown interest. Meta sees it as their biggest objective in the future and is willing to work on it for a decade if need be, going by statements from executives.
Meta clearly sees the digital universe as the future for media consumption and engagement and is willing to do whatever it takes to have a top market position. It still lasts to be seen whether it can achieve this, given which the likes of Microsoft and Disney already have a lot of popular existing IP to work with.
The company has progressd away from its stablecoin project Diem, that completed up a failure and was sold to Silvergate. It likewise recently joined the Crypto Open Patent Alliance to support open-source tech.
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