At the house of Metathe metaverse has become, quarter after quarter, a structuring accounting data, with an accumulation of operational losses which is now approaching the 80 billion dollars.
Reality Labs’ fourth-quarter results provide a new illustration of this, with operating loss of $6.02 billion For 955 million dollars in turnover. Despite revenue growth of 13% year-on-year, the division’s losses are increasing even faster, by 21%. At this point, the metaverse is no longer a simple “disruptive investment”, but a lasting loss-making pillar of Meta’s financial structure.
A promise that comes up against the long term
When Meta initiated this strategic shift, the group had a double advantage: an almost hegemonic domination over social advertising and an investment capacity without equivalent in the industry. Reality Labs was intended to help anticipate the post-social media era, by laying the foundations of a new, immersive and proprietary IT platform.
Four years later, the technological promise remains intact, but its timetable has lengthened considerably. Mass uses are slow to emerge and virtual reality headsets are struggling to cross the threshold of mainstream adoption. The metaverse exists, but it remains largely confined to niche communities, far from the volumes necessary to justify the investments made.
The “peak of losses”, a now recurring marker
During the presentation of the results, Mark Zuckerberg indicated that he expected losses “similar to those of last year” for the coming financial year, while mentioning a high point before a gradual reduction.
To achieve this, Meta is gradually modifying its scope of activities and its priorities. The start of the year was marked by the removal of more than 1,000 positions within the division, as well as by the cessation of several internal virtual reality projects.
The group, which did not launch a new Quest headset as usual, focused its communication on connected glasses integrating artificial intelligence functionalities, developed with EssilorLuxottica and offered at a price of $799.
A laboratory under financial constraints
Reality Labs remains a strategic laboratory, as long as Meta’s historical activities generate sufficient cash flow and its losses remain absorbable. They nonetheless raise a central question: that of arbitration, in a context where artificial intelligence now captures most of the attention and investments.
Beyond Reality Labs, Meta Posts Strong End of Year
In the fourth quarter, the group recorded a turnover of $59.9 billionup by 24% over one yearabove market expectations (58.35 billion). Net income increased by 9%has $22.8 billionwhile the daily user base of all platforms (“family DAP”) reaches 3.58 billiongrowing by 7% over a year.
Following this publication, Meta shares rose significantly after the stock market closed.
