Facebook’s Meta Took Another Major Blow

According to the social media giant’s new report, its metaverse-specific division, Facebook Reality Labs (FRL), suffered a loss of $2.81 billion this quarter. 

FRL, which focuses on building the hardware, software, and content central to Meta’s metaverse ambitions, generated $452 million in revenue in its Q2 2022 earnings – less than 35% compared to last quarter. 

While last year FRL reported a stupendous annual loss of $10.2 billion, the new figures suggest that this year’s results might be even worse. 

It was good to see a positive trajectory on our engagement trends this quarter coming from products like Reels and our investments in AI.

said Mark Zuckerberg, Meta founder, and CEO.

We’re putting increased energy and focus around our key company priorities that unlock both near and long-term opportunities for Meta and the people and businesses that use our services.

He added that the metaverse is “obviously a very expensive undertaking over the next several years”, adding that “as the metaverse becomes more important in every part of how we live… I’m confident that we’re going to be glad we played an important role in building this.” 

Although the company’s multi-billion dollar metaverse play is yet to generate funds, Zuckerberg insists that this is a long-term venture.

By helping to develop these platforms, we’re going to have the freedom to build these experiences the way that we and the overall industry believe will be best, rather than being limited by the constraints that competitors place on us.

he said.

I feel even more strongly now that developing these platforms will unlock hundreds of billions of dollars, if not trillions, over time.

Meanwhile, Meta’s CFO noted that the company expects third-quarter 2022 total revenue to be in the range of $26-28.5 billion.

This outlook reflects a continuation of the weak advertising demand environment we experienced throughout the second quarter, which we believe is being driven by broader macroeconomic uncertainty.

he said.

Previously, The Coinomist reported that Meta plans to shut down the Novi digital wallet.