In Meta’s most up-to-date quarterly earnings name the corporate shared the most recent income figures of Actuality Labs, the corporate’s XR division. Within the third quarter of the yr the division hit new milestones… sadly not the type buyers wish to see.
Meta has been clear about its plan to spend aggressively on its XR initiatives over the subsequent a number of years. So whereas it isn’t a shock to see the corporate’s newest working prices for Actuality Labs reaching an all-time excessive, seeing that document within the face of an all-time low income document for the quarter isn’t an excellent look.
Meta has solely been sharing its Actuality Labs income and working price figures since This autumn 2020, so whereas it’s sure that prior durations had much less income and probably much more spending, these new milestones shared for the third quarter of 2022 are way back to Meta has shared the information (roughly the final two years).
The doubtless causes for the decrease income and better spending could must do with timing greater than something. As of Q3 2022, Meta hasn’t launched a brand new headset in two years. That’s most likely meant slowing gross sales of Quest 2, particularly contemplating the corporate confirmed work on its subsequent headset a yr in the past, which can even have slowed gross sales. To not point out that the corporate raised the value of Quest 2 earlier this yr. Whereas on its face that ought to imply extra income, it additionally could have lowered demand for the headset.
It gained’t be till the This autumn earnings name that we see the impression Quest Professional could have on the Actuality Labs backside line.
Meta CEO Mark Zuckerberg has warned shareholders that the corporate’s XR investments could not flourish till 2030, however the firm nonetheless must tread fastidiously to take care of religion amongst its buyers.