“Meta Faces Significant Losses in AR/VR Reality Labs Despite $1 Billion Revenue Surge”
By Meta has released its earnings report for the quarter ending December 31, 2024. In spite of generating $1.08 billion from its Meta Quest devices, the company has logged a loss of $4.97 billion in its AR/VR Reality Labs division.
This marks the fourth consecutive deficit reported in this sector, with Reality Labs exhibiting recurring losses of $3.8 billion, $4.5 billion, and most recently, $4.4 billion in October 2024.
This escalates the total losses for the past year from the Reality Labs division to $17.7 billion, an increase from $16.1 billion reported in December 2023.
CEO Mark Zuckerberg, however, informed investors that the deficits are primarily due to ongoing R&D for Reality Labs and Meta’s Metaverse initiative, noting that the upcoming year is expected to be “a crucial year.”
Last month, Meta announced it would implement “performance-based reductions”, resulting in 5% of its workforce facing layoffs.