Meta Platforms (Facebook) posted a second-quarter loss of $2.81 billion in Facebook’s Reality Labs (FRL) division, which includes augmented and virtual reality operations, according to its earnings report Wednesday.
That figure is slightly lower than the $2.96 billion loss in the first quarter and better than analysts’ estimates of $3.67 billion for this quarter, according to FactSet.
Facebook’s Metaverse Department Announces $2.81 Billion Loss
FRL reported revenue of $452 million in the second quarter, compared to revenue of $695 million in the first quarter. That was a small fraction of the $28.4 billion raised this quarter from Meta’s family of apps, which also includes Facebook, Instagram and WhatsApp.
The company said it expects Reality Labs revenue to be lower in the third quarter compared to the second quarter.
Meta reported $2.3 billion in revenue and $10.2 billion in losses for FRL in 2021. The company said it’s committed to spending even more in this division over the next few years.
CEO Mark Zuckerberg said at the company’s first-quarter earnings call that the company’s metaverse arm is now “laying the groundwork for the very successful 2030s.”
According to FactSet, Meta’s adjusted quarterly earnings per share of $2.46 missed analysts’ average estimate of $2.54, while total revenue of $28.8 billion fell short of estimates of $28.9 billion.
Meta’s shares are trading at $169 with a daily rise of 6% at the time of writing, following these results.
Metaverse concept in 2021 cryptocurrency gained popularity in the world.
*Not investment advice.