Meta today released its second quarter earnings, reporting a $4.5 billion loss at its AR/VR Reality Labs division.
This is the second reported loss of the year in this segment, as Reality Labs reported a $3.8 billion loss during its first quarter. Its second-quarter revenue rose 28% year-over-year, largely driven by sales of the Quest headset.
Expenses in this segment increased 21% year over year to $4.8 billion due to “expenses related to increased headcount and inventory costs at Reality Labs.”
Meta CFO Susan Li said Meta will continue to support Reality Labs and the company will “continue to invest significantly” in the segment.
Looking ahead, Li acknowledged that Reality Labs' operating losses for 2024 “will increase significantly year-over-year due to continued product development efforts and investments to further scale (its) ecosystem.”
Beyond Reality Labs, Meta's total revenue increased 22% year-over-year to $39 billion, while net income increased 73% year-over-year to $13.4 billion.
Meta has reported losses in its Reality Labs segment for years, dating back to 2022, when the segment posted a loss of $3.76 billion during the third quarter.