Meta Platforms Inc.'s (NASDAQ:META) third-quarter earnings show a $4.4 billion loss for its augmented and virtual reality division, Reality Labs, marking the third consecutive quarterly loss for the segment this year.

Previous quarters in 2024 had losses of $3.8 billion and $4.5 billion, GamesIndustry.biz reported.

Revenue Increase Tied To Hardware Sales

Despite ongoing losses, Reality Labs reported a 29% revenue increase in the third quarter, totaling $270 million, driven by strong hardware sales.

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However, expenses also rose by 19% year-over-year to $4.7 billion, largely due to higher staff-related costs and infrastructure investments, according to Meta.

Meta CFO Susan Li described Reality Labs as a "strategic long-term priority," adding that the division will likely see "significant investment" as the company pursues its product roadmap.

Higher Losses Expected In 2024

Meta anticipates Reality Labs' operating losses to "increase meaningfully year-over-year" in 2024, attributing this to continued product development and scaling needs.

CEO Mark Zuckerberg noted the division's progress in integrating AI and wearables, pointing to the recent launch of the Ray-Ban Meta glasses as a milestone.

There was little mention of Meta's latest Quest 3S mixed reality headset, though Zuckerberg emphasized its improved features over the Quest 3.

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