Meta Platforms Inc, the American social media unicorn, has submitted its third-quarter financial results which ended on September 30.
According to the reports from the platform on October 26, its metaverse Reality Labs has recorded a loss of over $3.7 billion while it made a total income of just $285 million. Following this quarter’s loss, Meta’s Reality Labs has recorded over $9.4 billion loss to date.
Overall, the social media firm saw its revenue fall 4% in the third quarter while its net income was down 52% to $4.4 billion. Compared to the previous year, expenses rose by 19% to $22.1 billion while operating income dropped by 46% to $5.66 billion.
According to the results, Meta is currently facing near-term challenges in revenue, although a lot is being put in place for them to return to greater revenue growth.
From now on, it is not going to relent on the efficiency of the firm as it aims to emerge as a stronger company.
In order to maintain a healthy balance sheet, significant changes will be made to the firm’s headcount in 2023 and priorities will be given to only what will be of benefit to the firm. It will also cap its metaverse investments at $5 billion annually (it currently invests $10 billion – $15 billion currently).
Meta Plunges Deeper Into Web3.0
Despite the technology firm’s loss, it has constantly sought the means to expand its presence in the Web3.0 space since its rebranding from Facebook to Meta last year.
The tech giant and emerging metaverse pioneer, early this year reportedly plans to explore Non-fungible Tokens (NFTs) functionalities for its Facebook and Instagram platforms. Similarly, all US-based Facebook and Instagram users can now use the NFT sharing feature by Meta platforms. Interestingly, users from 100 different nations, not excluding creators and collectors, have access to the feature.
Whatsapp also benefitted as it began testing payments using the Novi wallet from Meta. The feature allows users to send and receive money on Whatsapp instantly without zero cost.