Social media giant, Meta Platforms (formerly known as Facebook) unveiled a $2.81 billion loss in the second quarter of its Facebook Reality Labs (FRL) division.
The earning report published on Wednesday revealed that the loss in the second quarter is slightly less than the loss in the first quarter of $2.96 billion.
FRL labs are involved in Meta’s virtual reality and augmented reality-based operations, especially for the revolutionary concept metaverse.
According to the report, FRL generated $452 million in revenue in the second quarter. This is a comparatively very small fraction of total revenue of $28.4 billion from Meta’s different apps and platforms such as Facebook, Instagram, and Whatsapp.
The revenue generated in the second quarter was subsequently lower than the second quarter with $695 million.
However, business analysts have envisaged revenue of $452 million for the “metaverse” division.
Meta already estimated that FRL would cut down its net profit by around $10 billion in 2021. The company stated that it is ready to spend even more on the FRL division for the next few years.
Meta’s performance has been impressive in the second quarter as it gained quarterly earnings per share of $2.46, which proved analysts’ average estimate of $2.54 wrong. Although, its overall revenue of $28.8 billion fell short of estimates of $28.9 billion.
In the company’s first-quarter earnings call, Mark Zuckerberg stated that the company’s metaverse division is striving for long-term benefits and is currently “laying the groundwork for a very successful 2030s.”
Earlier he gave reminders of the web version of the company’s Horizon Worlds metaverse platform’s launch, which is scheduled for this year.
