American Tech MNC, Meta Platforms Inc, reported losses amounting to around 2.81 Billion US Dollars in the second quarter (Q2), in its Virtual Reality (VR) and Augmented Reality (AR) operations segment, Facebook Reality Labs (FRL).
The reports that came out on the company’s earnings are said to be somewhat better than the losses faced in the first quarter (Q1) which amounted to around 2.96 Billion US Dollars. Furthermore, the loss incurred in the second quarter (Q2) is well below the forecasts made by analysts which were around 3.67 Billion US Dollars. According to the multinational tech conglomerate, Facebook Reality Labs (FRL) revenue would likely be lesser in the third quarter (Q3) in comparison to the second quarter (Q2).
In the fourth quarter (Q4) of the previous year, Meta Platforms Inc stated that it will break out earnings for the Facebook Reality Labs (FRL) segment to highlight the achievements and financial commitments made to a team it views as essential to the development of the next wave of virtual social interactions.
In the second quarter (Q2), Facebook Reality Labs (FRL) reported revenue of around 452 Million US Dollars, a decline from the first quarter’s (Q1) 695 Million US Dollars revenue. The reported earnings of FRL are just a tiny portion of the total revenue of 28.4 Billion US Dollars that was generated by Meta Platform Inc’s family of applications, which includes Facebook, WhatsApp Messenger, and Instagram, quarter.
Mark Elliot Zuckerberg, who is the co-founder, controlling shareholder, Chairman, and Chief Executive Officer (CEO) of Meta Platforms Inc, made a statement recently saying that the firm has kept the growth of Reels and the Metaverse as its centre of attention for the long-term period, instead of increasing revenue for the short-term through monetization. According to the CEO, creating the metaverse platforms may eventually lead to increasing the company’s revenue not just by Billions, but also by Trillion.
In the coming years, the company has promised to increase its investment in the Facebook Reality Labs (FRL) segment. Mark Zuckerberg, during the firm’s first quarter (Q1) earnings call, stated that the metaverse division is at present building the foundation for a highly victorious 2030s.