Meta’s Facebook Reality Labs (FRL) accounted for a loss of $4.3 billion in the fourth quarter, up from a loss of $3.7 billion in the third quarter and better than the consensus of analyst estimates for a loss of $4.4 billion, according to the earnings release on Wednesday.
In entire 2022, Meta lost a total of $13.7 billion in the metaverse division on revenue of $2.2 billion, up from a loss of $10.2 billion on revenue of $2.3 billion in 2021.
The company has previously said that it expected FRL’s operating losses in 2023 to grow significantly over 2022 as Meta invests in what it sees as a crucial part of its future.
Meta also reported quarter-four FRL revenue of $727 million, down from last year’s division revenue of $877 million but up from the third quarter’s $285 million. Facebook Reality Labs (FRL) division comprises augmented and virtual reality operations.
Meta recently faced investor calls to limit its spending on the metaverse as reduced ad spending and falling user growth numbers had cut into its profits.