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Meta's VR division lost nearly $14bn in 2022

The firm's net income fell 41%, but the CEO noted that 2023 will be a "year of efficiency"

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Meta released its financial results for the 12 months that ended December 31 , with its VR division performing poorly across the board. Here's what you need to know:

The numbers:

In 2022:

  • Revenue: $116 billion (down 1% year-on-year)
  • Net income: $23 billion (down 41% year-on-year)

In Q4 2022:

  • Revenue: $32 billion (down 3% year-on-year)
  • Net income: $4.6 billion (down 54% year-on-year)

Reality Labs:

  • 2022 Revenue: $2.1 billion (down 5% year-on-year)
  • Q4 2022 revenue: $727 million (down 17% year-on-year)

The highlights:

Meta's AR/VR division Reality Labs posted an operating loss of almost $14 billion during the year ($13.7 billion precisely). By comparison, in 2021, the business segment saw a loss of $10.2 billion.

In October 2022, the tech firm launched its new VR headset, the Meta Quest Pro.

During the 12 months, Facebook's monthly active users grew by 2% year-on-year to three billion, whereas daily users increased by 4%.

"Our community continues to grow and I'm pleased with the strong engagement across our apps," said Meta CEO Mark Zuckerberg. "Facebook just reached the milestone of two billion daily actives.

"The progress we're making on our AI discovery engine and Reels are major drivers of this. Beyond this, our management theme for 2023 is the 'year of efficiency' and we're focused on becoming a stronger and more nimble organization."

The report forecasted that, for Q1 2023, Meta expects revenue to range between $26 billion and $29 billion.

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Jeffrey Rousseau avatar

Jeffrey Rousseau

Staff Writer

Jeffrey Rousseau joined in March 2021. Based in Florida, his work focused on the intersectionality of games and media. He enjoys reading, podcasts, staying informed, and learning how people are tackling issues.