Meta reported its quarterly earnings for the second time since its rebrand from Facebook. As it turns out, Mark Zuckerberg’s company lost $3 Billion in the first quarter of 2022.
A $3B Loss in Mark Zuckerberg’s Meta
In October last year, Zuckerberg announced the transition of Facebook to Meta to focus more on the company’s vision for the metaverse. That announcement led to a spike in the price of several metaverse tokens and piqued the interest of everyone in the metaverse.
The Meta CEO also revealed some of its plans for Meta’s family of apps. For instance, Zuckerberg will integrate NFTs on Facebook and Instagram. In addition, Horizon Worlds, Meta’s social VR app, will begin rolling out creator monetization features.
Soon, Meta will roll out a web version of Horizon Worlds that will welcome people who don’t have $300 to get a VR headset. Zuckerberg said that Horizon is the “centerpiece” of the company’s strategy to develop the metaverse.
However, how is Meta faring so far? In the first quarter of this year, Meta’s Reality Labs operated at a loss of $2.96 billion. Moreover, Reality Labs also lost over $10 billion last year. Zuckerberg explained that the vision for Meta is “expensive to build” and “Meta’s overall profitability won’t grow in 2022.”
“It’s not going to be until those products really hit the market and scale in a meaningful way, and this market ends up being big, that this will be a big revenue or profit contributor to the business,” said Zuckerberg. “This is laying the groundwork for what I expect to be a very exciting 2030,” Zuckerberg added.