Meta loses $3.7B in Q3 in metaverse-focused Reality Labs division
Meta reported that it lost $3.7 billion in the third quarter in its metaverse-focused Reality Labs division.
In its quarterly analyst call, Susan Li, chief financial officer at Meta, said the company had about $210 million in revenue in the quarter, down 26% due to lower Meta Quest 2 sales in advance of the October launch of the Meta Quest 3 virtual reality headset. Expenses were $4 billion, or flat year over year.
In a bit of non-news, Meta said that it expects to continue to lose money in its Reality Labs division, according to the company’s report on its third quarter. Out of the last 21 months, Reality Labs has lost about $24 billion.
“Finally, for Reality Labs, we expect operating losses to increase meaningfully year-over-year due to our ongoing product development efforts in augmented reality/virtual reality and our investments to further scale our ecosystem,” Meta said in the report for the third quarter ended September 30.
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Overall, Zuckerberg said it was a good quarter with the highest operating margin in two years. The quarter benefited from lower Reality Labs operating expenses.
The company reported $34.1 billion in revenue for the third quarter ended September 30, up 23% from $27.7 billion a year ago. Net income was $11.6 billion, up 164% from $4.4 billion a year ago.
Family daily active people was 3.14 billion on average for September, up 7% from a year ago. Monthly active users were 3.05 billion, up 3% for Facebook.
Online advertising and gaming were strong in part due to growth in China. One of the biggest
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