The AR/VR Reality Labs division of Meta reports additional losses amounting to $4.4 billion

In its latest earnings report for Q3, Meta disclosed a $4.4 billion loss within its AR/VR Reality Labs division.

This marks the division's third consecutive quarterly loss this year. Previously, the division reported a loss of $3.8 billion in Q1 and $4.5 billion in Q2.

Meta's Reality Labs recorded a 29% increase in Q3 revenue, reaching $270 million, primarily fueled by hardware sales.

Expenses for the Reality Labs unit increased by 19% compared to the same period last year, amounting to $4.7 billion. The rise was largely due to heightened costs associated with staffing and infrastructure.

Meta anticipated further increases in operational losses for Reality Labs in 2024, citing ongoing efforts in product development and expansion of its technological capabilities.

Despite the losses, Meta acknowledged achieving various milestones in this quarter related to AI integration and wearable technology, highlighting the release of Ray-Ban Meta glasses. Limited information was provided about the new Quest 3S mixed reality headset, though CEO Mark Zuckerberg mentioned it offers advanced capabilities based on Quest 3.

Addressing the persistent losses in Reality Labs, CFO Susan Li emphasized the strategic long-term importance of the division, explaining that substantial investment is expected as the company pursues its ambitious product objectives.