I read [this article](https://kotaku.com/facebook-metaverse-vr-2022-billions-13-billion-quest-2-1850062517) this morning about how ~~Facebook~~ Meta’s VR division “Lost $13.72 Billion In 2022”. The article later says that Meta is burning through money. But if they’re spending money to generate a product, doesn’t that money go somewhere? If Meta doesn’t have the $14 billion, who does?
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Companies have a spend rate which is offset by revenue rate. A lot goes into both of those numbers, but basically a company is burning through money when their spend rate either exceeds their revenue rate, meaning they are spending more/faster than they are able to recoup. Or, their spend rate is threatening to exceed their revenue rate.
Some common reasons
Overstaffing
Overpaying (usually applies to C level and above)
Excessive “perks”
Poorly priced products
Over leveraged give aways/promotions
Over diversified
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