Meta released its earnings report for Q4 2024 on Wednesday. According to the report, Reality Labs posted a loss of $4.97 billion (roughly Rs. 43,040 crore) in Q4 2024. The Meta subsidiary generated $1.1 billion (roughly Rs. 9,526 crore) in sales during the same period. In 2024, Meta’s total revenue stood at $164.50 billion (roughly Rs. 14,24,608 crore), representing a 22 percent YoY rise over the previous year, the company said.Despite these losses, Mark Zuckerberg has doubled down on the technology, stating that metaverse technology will see more growth in the future.
Reality Labs Operating Losses Reach $60 Billion
With these numbers, Meta’s Reality Labs unit has now reportedly cost the company a whopping operating loss of $60 billion (roughly Rs. 5,19,599 crore) since it was created in August 2020.
Meta’s Reality Labs division is responsible for conducting research and development in augmented reality (AR), virtual reality (VR), mixed reality (MR) — when combined, these technologies form the foundation of metaverse ecosystems. The subsidiary has posted losses in consecutive quarters since it was created.
During the latest earnings call, Zuckerberg said that Reality Labs is one of Meta’s units that has notably contributed to its growth. In an attempt to explain losses for Reality Labs, the Meta chief said, “generative AI, Reality Labs generally are more technical organisations which means higher cost and space being relative for their business functions.”
Despite the losses, Zuckerberg remains optimistic about the future of metaverse technology. “This is also going to be a pivotal year for the metaverse,” he said. “The number of people using Quest and Horizon has been steadily growing, and this is a year when a number of the long-term investments that we’ve been working on will make the metaverse more visually stunning and inspiring.”
Reality Labs lost $13.7 billion (roughly Rs. 1,12,200 crore) in 2022. Last year, Meta revealed that Reality Labs posted a loss of $46.5 billion while generating nearly $11 billion (roughly Rs. 91,744 crore) in revenue in Q4 2023.
In June 2024, Meta divided its Reality Labs team into two separate entities, one dedicated to metaverse-focussed Quest headsets and the other to hardware wearables that Meta may launch in the future. Some workers were also laid off. A month later, the company posted job openings at the Meta Metaverse Content leadership team.