Meta, the parent company of Facebook, recently released its financial results for the third quarter ending on September 30. While the overall performance was strong, the company's AR/VR division, Reality Labs, faced challenges:

Q3 Key Figures:

- Total Revenue: $34 billion (up 23% year-on-year)

- Net Income: $11.6 billion (up 164% year-on-year)

- Reality Labs Revenue: $210 million (down 26% year-on-year)

- Three-month operating loss for Reality Labs: $3.74 billion, compared to $3.67 billion in the same quarter last year

Nine-Month Data Ending September 30:

- Total Revenue: $95 billion (up 12% year-on-year)

- Net Income: $25 billion (up 35% year-on-year)

- Reality Labs Revenue: $825 million (down 42% year-on-year)

- Nine-month operating loss for Reality Labs: $11.5 billion, compared to a $9.44 billion loss in the same quarter last year

Highlights:

Despite a strong performance in other areas, Meta's AR/VR division, Reality Labs, continues to pose financial challenges. With operating losses already reaching $11.5 billion in the first nine months of the year, a 22% increase from the previous year, the company anticipates a worse financial outcome for the division in 2023.

Nonetheless, Meta remains committed to its VR/AR ambitions and expects operating losses for Reality Labs in 2024 to increase significantly due to continued investments and product development efforts.

While Reality Labs faced a decline in revenue, Meta introduced its new VR headset, the Meta Quest 3, in early October, which may contribute to future growth.

During the quarter, Facebook's monthly active users grew by 3% year-on-year, reaching three billion, with daily users increasing by 5% to two billion.

Meta CEO Mark Zuckerberg expressed pride in the company's achievements in AI and mixed reality, emphasizing the launch of Quest 3, Ray-Ban Meta smart glasses, and the development of an AI studio.

The report forecasts that for Q4 2023, Meta expects revenue to range between $36 billion and $40 billion, indicating optimism for the company's continued growth and innovation.

Source: by Jeffrey Rousseau, Staff Writer for GamesIndustry.biz