![]() Meta CFO Susan Li writes in the Q2 2023 earnings report that the company anticipates Reality Labs’ operating losses to get even larger. Across all of 2022, Reality Labs lost Meta $13.7 billion. Meta’s VR and AR products brought in just $276 million, while Reality Labs lost $3.7 billion this quarter. Though much at Meta is looking up, Reality Labs continues to struggle. And though Meta hasn’t started monetizing Threads yet, the new competitor to Twitter (or are we saying X now?) is off to a solid start, according to Zuckerberg. ![]() Zuckerberg says that Reels have hit 200 billion daily plays across Instagram and Facebook, and its monetization revenue run rate has increased to more than $10 billion, up from $3 billion in the fall. The revenue growth isn’t just a result of lower costs, though. Meta calls this downsizing “The Year of Efficiency,” which is a much more palatable way to say “mass layoffs” on an earnings call. Though this correction for over-hiring has serious implications for those who lost their jobs, investors seem to be pleased. Part of why Meta is making more money is because it’s laid off more than 20,000 employees, which makes personnel costs much lower. Meta’s stock price reflects this - while the stock took a nose dive through 2022, it’s now climbing back up again, trading at around $298 per share after markets closed today. The company reported 11% year-over-year revenue growth, which is a sigh of relief for investors, because this time last year, Mark Zuckerberg’s company posted its first-ever quarterly revenue decline. Meta had one of its best quarters since before it changed its name from Facebook.
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