Meta records loss of $4.5bn in Reality Labs during Q2
Meta published its second quarter earnings today, and has recorded a loss of $4.5 billion in its AR/VR Reality Labs division.
This is the second reported loss of the year in this segment, with Reality Labs reporting a loss of $3.8 billion during its first quarter. Its Q2 revenue was up 28% year-over-year, largely driven by sales of Quest headsets.
Expenses in this segment increased 21% year-over-year to $4.8 billion due to "higher-headcount related expenses and Reality Labs inventory costs."
Meta CFO Susan Li said Meta will continue its support in Reality Labs, and that the firm will "continue to invest meaningfully" in the segment.
Looking ahead, Li acknowledged Reality Labs' operating losses for 2024 "will increase meaningfully year-over-year due to ongoing product development efforts and investments to further scale [its] ecosystem."
Beyond Reality Labs, the total revenue at Meta increased 22% year-over-year to $39 billion, while net income rose 73% year-over-year to $13.4 billion.
Meta reporting losses in its Reality Labs segment has been ongoing for years, as far back as 2022 when the segment posted a loss of $3.76 billion during Q3.
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