Meta’s Reality Labs Has Lost More Than $21 Billion Since the Start of 2022

Meta reported second-quarter earnings on Wednesday and said that its Reality Labs unit, which develops virtual reality and augmented reality technologies needed to power the metaverse, logged a $3.7 billion operating loss. Last year, Meta’s Reality Labs unit lost a total of $13.7 billion while bringing in $2.16 billion in revenue, which is driven in part by the company’s sales of Quest-branded VR headsets. Reality Labs lost $3.99 billion during the first quarter. That puts its total losses at about $21.3 billion since the beginning of last year.

Meta said in its earnings report that it expects operating losses in its Reality Labs unit “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.” Despite Reality Labs’ operating loss, Meta reported revenue of $32 billion for its quarter ending in June, an 11% increase compared to the same period last year. “The company reported profits of $7.79 billion for the quarter, a 16% increase compared to last year, also beating analysts’ estimates,” adds CNN.