Meta's latest financial report shows that Reality Labs, which is responsible for virtual reality and wearable devices, continued to suffer significant losses in the second quarter of this year. However, its revenue increased compared to the same period last year, and its overall performance was slightly better than market expectations.
The company disclosed that Reality Labs' revenue for the quarter was $431 million, up from $370 million in the same period last year; operating loss exceeded $4.6 billion, up from $4.53 billion in the same period last year. According to data compiled by StreetAccount, analysts had previously expected the division to report a quarterly loss of $5.07 billion and revenue of $423.4 million.
Second quarter revenue growth
The data shows that Reality Labs' sales volume is still limited, but its revenue continues to grow year-on-year.
- Second-quarter revenue was $431 million.
- Revenue in the same period last year was $370 million.
- Market expectations are for revenue of $423.4 million.
Losses remain high
Despite the actual losses being lower than analysts’ expectations, this division remains one of Meta’s businesses that it continues to invest the most in.
- Second-quarter operating loss exceeded $4.6 billion
- The operating loss in the same period last year was US$4.53 billion.
- The market expects a loss of $5.07 billion.
Business focus shifts to eyewear equipment
Reality Labs primarily develops virtual reality devices and AI-powered wearable products. Zuckerberg rebranded Facebook as Meta in 2021, emphasizing his long-term bet on the digital world.
However, the virtual reality market has failed to achieve widespread consumer adoption. With progress in this area falling short of expectations, Meta has shifted some of its Reality Labs focus in recent years to devices such as smart glasses, including the Ray-Ban Meta glasses developed in collaboration with EssilorLuxottica.
Additional information:According to CNBC, Reality Labs' losses this quarter, while still high, were lower than analysts' previous estimates of $5.07 billion.
