Social media giant Meta report Earnings increased for the first time in three quarters and exceeded expectations. However, the company also revealed that Reality Labs, the division dedicated to developing virtual reality and the metaverse, lost about $4 billion in the first quarter of this year.
CEO Mark Zuckerberg has stressed that despite Reality Labs’ operational losses, the company is still working on its Metaverse vision, suggesting that near-term gains are likely.
Meta’s revenue rises after company cuts 10,000 jobs
Meta increased revenue for the first time in three quarters. But this positive update comes amid a restructuring that has already led to a restructuring of the industry. 10,000+ jobs eliminated.
The tech giant reported first-quarter revenue of $28.1 billion, beating expectations of $27.66 billion and up 3% year-over-year. Earnings outperformed, but Meta’s overall net income fell 24%, from $7.47 billion to $5.71 billion.
The decline in revenue was due to Metaverse costs and a significant drop in advertising spending due to a weakening economy and changes in consumer behavior. decreased by 17%.
Meta expects second-quarter revenue to increase from $29.5 billion to $32 billion. According to Refinitiv, the highest estimate by analysts had expected revenue of $29.5 billion.Mr Zuckerberg statement:
“We had a good quarter and our community continues to grow. Our AI efforts are delivering positive results across our apps and business. , we can build better products faster and be in a stronger position to realize our long-term vision.”
The Metaverse division of Meta lost about 1000.$4 billion in the first quarter
Meta has been trying to shift from social media to metaverse in recent years. The company made headlines with his 2021 entry into the high-level metaverse. But the road was rough. lose billions.
Specifically, the Metaverse segment lost about $4 billion this quarter, a total of $13.7 billion last year, and is expected to lose even more in 2023. still committed to this vision and Artificial intelligence (AI) development.
“There are rumors going around that we’re moving away from the Metaverse Vision in some way, so I just want to say up front that that’s not accurate.”
Zuckerberg also claimed that AI is involved in VR and AR technology. This is relevant to both the metaverse and the development of AR glasses. “Our vision for AR glasses includes an AI-centric operating system that will be the foundation for the next generation of computing,” Zuckerberg said by phone.
Meta’s flagship metaverse platform, Horizon Worlds, fell short of expectations, forcing the company to: lower the targetThe Metaverse platform has reportedly been plagued with bugs and issues, with user complaints about the quality of the virtual worlds.
Meta also revealed that half of the daily active users with Quest headsets use the device for more than an hour a day, but how many users use Quest headsets each day? It has not been made clear whether “Building the Metaverse is a long-term project, but the reasons remain the same, and we remain committed to it,” Zuckerberg said.
Meanwhile, Meta shares rose 12% in extended trading on Wednesday after the company released its earnings report. The company’s shares are up more than 13% in pre-market trading.
This article originally appeared on tokenist