Facebook Parent Meta Misses Revenue Estimates for Metaverse Division in Q3, Expects Losses to Grow in 2023 - Yahoo Finance

Meta Platforms (FB) reported third-quarter gross of conscionable $285 cardinal successful its Facebook Reality Labs (FRL) division, which comprises its augmented and virtual world operations, according to its earnings report released Wednesday. That was good abbreviated of statement expert estimates of $406 million, and down from $452 cardinal successful the 2nd quarter.

Overall, FRL accounted for a nonaccomplishment of $3.7 cardinal successful the quarter, up from a nonaccomplishment of $2.8 cardinal successful the 2nd quarter.

The institution besides said successful a property merchandise that it expected FRL's operating losses successful 2023 to turn "significantly" twelvemonth implicit year. "Beyond 2023, we expect to gait Reality Labs investments specified that we tin execute our extremity of increasing wide institution operating income successful the agelong run," it said.

Meta shares were down astir 8% successful after-hours trading connected Wednesday. Shares are down much than 60% this year.

Facebook has faced capitalist calls to trim spending connected the Metaverse arsenic little idiosyncratic maturation numbers and reduced advertisement spending person chopped into its results. Meta reported a nonaccomplishment of $10.2 cardinal connected gross of $2.3 billion for FRL successful 2021, and the institution has said it is committed to spending adjacent much connected the part for the adjacent respective years, seeing it arsenic a important operator of aboriginal growth.

For the institution arsenic a whole, Meta reported adjusted quarterly net per stock for Q3 of $1.64, missing the expert statement estimation of $1.90, according to FactSet, portion its wide gross of $27.7 cardinal bushed estimates of $27.4 billion.

The institution is scheduled to clasp an net telephone with analysts astatine 5 p.m. ET.

This is simply a processing communicative and volition beryllium updated.

UPDATE (Oct. 26, 20:31 UTC): Added item throughout.