Half released its financial results for the first quarter of the company’s fiscal year, demonstrating positive performance in terms of revenue and overall insights but the Reality Labs divisionwhich includes devices AR/VRis still in sharp decline, losing another $3.8 billion.
In the quarter ended March 31, Meta recorded revenues of $36.5 billion and net income of $12.4 billion, respectively growth by 27% and 117% compared to what was recorded in the same period last year.
Overall, these are positive results, but the Reality Labs division, which includes the development and production of AR/VR devices and support services for them, continues to be in a particular situation, characterized by significant operational losses.
Investments in AR/VR will continue
Compared to a growth of 30% compared to last year, Reality Labs recorded operating losses of 3.85 billion dollars, less negative than the previous year (3.99 billion in the same period).
The investments in the field of virtual and augmented reality continue to be huge on the part of Meta, which shows how this type of technology is particularly expensive, but the company has nevertheless confirmed that it wants to continue to focus on this sector.
“We continue to expect operating losses that may increase year over year due to our ongoing product development efforts, and our investments that will expand for increase the ecosystem“said CEO Mark Zuckerberg.
Added to this are also the large investments that Meta is making in the field ofartificial intelligencewhich will weigh on the balance sheet for a while before being able to make actual profits, so it is a long-term strategy for Meta.
We remind you that recently the price of Meta Quest 2 was permanently reduced to $199, while Meta Quest 3 was used more often than previous models, demonstrating some growth in a sector that has not been very easy until now.
