Meta's Reality Labs Reports $4.5B Q2 Loss as Metaverse Investment Hits $50B Milestone Since 2020
Meta's Reality Labs division reported a $4.5 billion loss in Q2, adding to its cumulative losses of approximately $50 billion since 2020. Despite this significant setback, the loss was slightly better than analysts' expectations of $4.55 billion.
Meta Reality Labs company logo
The division's revenue reached $353 million, showing 28% growth year-over-year, primarily driven by Quest VR headsets and Ray-Ban Meta smart glasses sales. However, this fell short of the anticipated $371 million in revenue.
Meta continues to expand its presence in the smart glasses market through its partnership with Ray-Ban parent company EssilorLuxottica. The second generation of Meta's smart glasses launched in October at $299, with CEO Mark Zuckerberg emphasizing the potential for AI-powered glasses without displays.
In the VR hardware space, Meta released its Quest 3 headset in September for $499, positioning itself against Apple's Vision Pro, which launched at $3,500 in the US and ¥29,999 ($4,128) in China.
Despite ongoing losses, Meta maintains its commitment to developing both AR and VR technologies, with Zuckerberg viewing these investments as crucial for what he considers the "next era of personal computing."