In the second quarter of 2024, Meta’s metaverse-focused division, Reality Labs, incurred losses of $4.48 billion, according to the company’s report.
Meta forecasts total expenses for 2024 to range between $96 and $99 billion. The company’s statement noted:
“For Reality Labs, we continue to expect operating losses to increase significantly in 2024 compared to the previous year due to ongoing product development efforts and investments in further expanding our ecosystem.”
Overall, the company’s revenue for the second quarter of 2024 amounted to $39 billion, an increase of 22% compared to the previous year. The significant revenue growth is attributed to higher advertising revenues and an increase in active users across Meta’s platforms, including Facebook, Instagram, and WhatsApp.
However, despite the revenue growth, Reality Labs remains a loss-making division. Meta continues to invest in the development of virtual and augmented reality technologies, hoping that these investments will pay off in the long term. Experts note that the success of the metaverse could be a key factor for the company’s future growth, though current losses raise concerns among investors.
Meta has also announced new products and updates in the field of virtual reality, which are planned for release at the end of 2024. These developments include more advanced VR headsets and platforms for creating virtual worlds, aimed at increasing user interest and expanding the Reality Labs ecosystem.
