Meta’s metaverse division bleeds $3.7 billion in Q2
The company formerly known as Facebook remains set on its metaverse ambitions despite its division focused on that segment routinely losing billions by the quarter.
Meta’s Reality Labs unit — comprising augmented reality, virtual reality and the company’s metaverse software platform — suffered a net loss of about $3.7 billion in the second quarter, the company revealed on Wednesday.
But that financial hit is just the norm in recent quarters.
Reality Labs notched a net loss of $13.7 billion in 2022 and bled nearly $4 billion during the first three months of 2023.
Facebook changed its name to Meta in October 2021, signaling its focus on metaverse-related projects.
Reality Labs’ operating losses are expected to increase “meaningfully” year-over-year “due to our ongoing product development efforts in augmented reality/virtual reality and investments to further scale our ecosystem,” Meta said in a press release Wednesday.
The company added that it expects total expense growth in 2024 “as we continue to invest in our most compelling opportunities, including artificial intelligence (AI) and the metaverse.”
Like in past quarters, Meta’s “Family of Apps” segment, which includes Facebook, Instagram, Messenger, WhatsApp and other services, more than offset the Reality Labs loss. In total, that category posted income of nearly $13.1 billion in the second quarter.
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