Meta's Reality Labs Loses Billions of Dollars in Q2

Reality Labs, a Meta subsidiary that produces VR technologies, is reported to have lost $4.5 billion in the second quarter of 2024.

According to the company's financial report, Reality Labs' losses are expected to "increase meaningfully year-over-year." The reason, according to the report, is ongoing product development efforts and investments to further scale the ecosystem.

At the same time, Reality Labs' revenue increased by 28% over the same period, fueled by the Quest headset sales, as stated by the company's CFO Susan Li. "Reality Labs remains our other long-term initiative that we continue to invest meaningfully in," continued the manager. "Quest 3 is selling well and Ray-Ban Meta smart glasses are showing very promising traction." According to Li, demand, usage, and retention increase the company's confidence in the long-run potential of AR glasses.

At this point, Meta's financial losses over VR are hardly newsworthy. In April, it was reported that the company lost $3.84 billion during Q1 of the current fiscal year, continuing an established trend.

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