Thread by @kentbye

1/ @Meta's Earnings call is just getting under way.
investor.fb.com/investor-event…

This is the first time that they're breaking out their XR costs with Reality Labs Operating Loss, which looks like it's been around $12.293B over the last 5 quarters.

I'll try to capture other XR news👇

2/ The $FB stock is getting hit hard in after hours market trading dropping 22% for missing earnings projections.
marketwatch.com/story/meta-sha…

3/ I believe there's some new historic data for how much revenue & income loss @meta had with @RealityLabs over the past 3 years:
2019 XR Revenue $501M & Income (loss) of ($4.503B).
2020 XR Revenue $1.139B & ($6.623B).
2021 XR Revenue $2.274B & ($10.193B).
s21.q4cdn.com/399680738/file…

4/ Seeing lots of comments for how this is the first time Facebook has seen an overall decline of daily active users.

See the comments from @Verge's @alexeheath for more context on the many variety of headwinds $meta talked about during their earnings:

https://twitter.com/alexeheath/status/1489006945340051456

5/ @Meta announced "Class A common stock is expected to begin trading on NASDAQ under the ticker symbol $META in the first half of 2022." Was supposed to change to $MVRS Dec 1, but they likely got @ballmatthew @roundhill to change $META ETF to $METV Jan 14

https://twitter.com/BullishRippers/status/1487471387648348162

6/@Meta's official press release reiterates numbers + has some more:
investor.fb.com/investor-news/…

I'm not sure if $Meta's revenue from XR is purely from software sales as they're presumably subsidizing every Quest sold + R&D + employee salaries, etc. in Income (loss) from operations.

7/ Here's @meta's prepared remarks for Q4 earnings call.
s21.q4cdn.com/399680738/file…
I'm excerpting the Metaverse & XR specific quotes below.
"People have spent more than $1B on Quest store content"
"Horizon is core to our metaverse vision" [👀😬] & launching 2D mobile app in 2022.

8/ Zuckerberg said "People have spent more than $1B on Quest store content."
$1B prob before Meta takes 30% cut.
Beat Saber is >$100M.
Maybe ~$370M-$400M from software.
Quest launched May 21, 2019.
Total Reality Labs Revenue 2019-2021 is $3.914B.
Estimate # Quests have sold >10M?

9/ @RtoVR's @benz145 picks up on the $1B Quest store announcement & graphs growth of software sales since Quest launched in 2019 "more than quadrupling average monthly store revenue from $12.4 million to $51.3 million" since Sep 2020 when it totaled $150M.
roadtovr.com/oculus-quest-s…

10/ In listening to Meta’s earnings call, they mentioned “headwinds” dozens of times.
Good thread summarizing various reasons why $FB / $META dropped 20+% in after hours trading.

https://twitter.com/borrowed_ideas/status/1489073001891090432

11/ @meta’s director of content ecosystem @c_pruett provides some more context on the $1B Quest Sales:
8 apps with >$20M (and we know @BeatSaber is >$100M) [~$240M]
14 apps > $10M [$140M]
17 apps > $5M [$85M]
>120 apps > $1M [$120M]

~$585M from 159 apps

https://twitter.com/c_pruett/status/1489012183212068866?s=21

12/ Last I counted, Oculus store has ~356 apps.
We know remaining ~197 apps <$1M, so let’s assume they each average $900k, then that’s $177.3M.
That leaves another $237.7M to the top 159 apps, probably mostly split between top 40 apps.
Top 40 apps prob account for ~60-70% of $1B.

13/ @jason_kint contextualizes how the surveillance capitalism business model of $META / $FB is facing many targeting & measurement “headwinds” from Apple’s new iOS tracking consent changes + regulation from the EU & CA, & Schrems II data sharing restrictions.

https://twitter.com/jason_kint/status/1489097679204409345

14/ TikTok came up quite a bit in $Meta earnings call, & there was a huge emphasis on Reels + video to try to counter them.
Worth mentioning Shalini Kantayya's documentary TIKTOK, BOOM which covers how Zuckerberg is rallying politicians to legislate TikTok

https://twitter.com/kentbye/status/1485463675137716228

15/ Pithy insights on $META earnings from ex-Meta employee @nikitabier.

Apple’s Advertising Identifier (IDFA) change was estimated by Meta to have a ~$10B impact on revenue.

I do suspect a wider shift to immersive XR tech hitting more of a critical mass in the next 5-10 years.

https://twitter.com/nikitabier/status/1489007202056634370

16/ $FB / $META stock dropped 26.39% today based on the many headwinds they talked about yesterday.
Their market cap dropped $234.12B from $895.51B at close yesterday to $661.39B at close today.
"the biggest collapse in market value for any U.S. company."
bloomberg.com/news/articles/…