Facebook said on Monday (October 25) it will start publishing the financial results of its augmented and virtual reality labs as a separate unit, where it is investing billions in its ambitions to build the "metaverse" and as it reported that its main advertising business faces "significant uncertainty."

Facebook, which reported third-quarter profit up 17%, warned that Apple Inc's new privacy changes would weigh on its digital business in the current quarter.

The social media company reported quarterly revenue below market expectations, which Chief Operating Officer Sheryl Sandberg told analysts was due to the iOS changes.

David Wehner, Facebook's chief financial officer, said the company expected its investment in its hardware division, Facebook Reality Labs, to reduce overall operating profit in 2021 by approximately $10 billion.

The world's largest social media network is under scrutiny from global lawmakers and regulators, including from the Federal Trade Commission which has filed an antitrust lawsuit alleging anticompetitive practices.

The company's total revenue, which primarily consists of ad sales, rose to $29.01 billion in the third quarter from $21.47 billion a year earlier, missing analysts' estimates of $29.57 billion.

Sandberg said Facebook's advertisers were also affected by the global supply-chain disruptions and labor shortages, which hurt advertising demand across a range of sectors and regions.

Facebook said it repurchased $14.37 billion in stock during the third quarter and announced an additional $50 billion in share buybacks.

The stock rose after earnings report.

Source: Reuters