Meta has reported a $4.5 billion loss in its Reality Labs division for the second quarter

Meta has disclosed its earnings for the second quarter, revealing a $4.5 billion loss in its AR/VR Reality Labs division.

This marks the second consecutive quarterly loss for Reality Labs this year, following a $3.8 billion shortfall reported in Q1. Revenue for Q2 increased by 28% compared to the previous year, mainly driven by Quest headset sales.

The segment's expenses rose 21% year-over-year, reaching $4.8 billion. These costs were attributed to increased headcount and inventory expenses within Reality Labs.

Meta CFO Susan Li emphasized the company's commitment to supporting Reality Labs, stating they plan to "continue to invest meaningfully" in this area.

Li also projected that operating losses for Reality Labs would significantly rise in 2024 due to ongoing product development and efforts to expand its ecosystem.

Overall, Meta's total revenue grew by 22% year-over-year to $39 billion, while net income surged by 73% to $13.4 billion.

The trend of losses in the Reality Labs segment has been ongoing for years, dating back to 2022 when the division recorded a $3.76 billion loss in Q3.