Meta, formerly known as Facebook, reported its best quarter since 2021, despite incurring massive losses in the Metaverse sector. Its Reality Labs division, responsible for virtual and augmented reality projects, reported a loss of $3.7 billion in the second quarter of 2023, with revenue of only $276 million. The company expects to increase its metaverse spending in the upcoming year, causing even greater losses. However, Meta’s CEO Mark Zuckerberg expressed his commitment to the metaverse vision and highlighted the upcoming launch of the Quest 3 headset.

Aside from the metaverse, Meta had a strong quarter overall. The company reported $32 billion in revenue, representing an 11% increase compared to the previous year. Zuckerberg emphasized the success of Reels, a feature that now garners 200 billion daily views across Facebook and Instagram due to the company’s emphasis on AI-driven recommendations. He also mentioned the recent launch of Threads and the Llama 2 large language model.

Although early data suggests a decline in Threads engagement, Zuckerberg stated that more users are returning daily than expected. He believes there is potential for the app to reach “hundreds of millions” of users in the future. Meta also confirmed that the majority of its layoffs, which began last fall, have been completed. Zuckerburg referred to this period as a time of “cultural changes” as the company underwent restructuring.

However, Zuckerberg did not provide a precise timeline for when he anticipates the metaverse spending to pay off. He acknowledged the skepticism of investors and admitted that he cannot guarantee the success of this long-term bet. Nonetheless, he believes that the metaverse is the direction the world is heading in.

In summary, Meta reported its strongest quarter since 2021, despite incurring substantial losses in the metaverse sector. The company expects to increase its metaverse spending in the coming year. However, CEO Mark Zuckerberg remains committed to the metaverse vision and highlighted the upcoming launch of the Quest 3 headset. Meta also experienced success in other areas, such as the Reels feature and the recent launch of Threads. Despite uncertainties, Zuckerberg believes the metaverse is the future and that the company’s cultural changes and restructuring efforts are showing progress.