Meta's AR/VR Quarterly Revenue Growth Continues as Quest 3 "Exceeds Our Expectations" - UploadVR

Meta Reality Labs is showing year-over-year growth in quarterly revenue for 2024. During the Q2 2024 earnings call, Mark Zuckerberg mentioned that Quest 3 sales have surpassed expectations. Reality Labs, the division behind Quest headsets, the Horizon platform, Ray-Ban Meta smart glasses, and AR glasses R&D, reported $353 million in revenue for Q2 2024. This marks a 28% increase from Q2 2023. CFO Susan Li attributes this growth mainly to Quest 3. Despite higher revenue compared to the first half of 2023, it remains lower than the same periods in 2022 and 2021 due to the higher price of Quest 3.

Meta plans to launch a more affordable Quest 3S at around $300, aiming to increase sales volume. This model is expected to feature the Snapdragon XR2 Gen 2 chipset and color passthrough mixed reality capabilities, but will use older fresnel lenses to keep costs down.

However, even with increased revenue, Reality Labs remains far from profitability, posting a $4.5 billion loss in Q2 2024 due to high R&D costs. These expenses are largely investments in future technologies like AR glasses.

Looking ahead, Meta’s AR/VR hardware teams have been instructed to cut spending by 20% by 2026. With upcoming products like Quest 3S, HUD glasses in 2024, two Quest 4 models planned for 2026, and Quest Pro 2 in 2027, Meta aims to guide Reality Labs towards profitability, anticipated sometime in the 2030s.

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Source: https://www.uploadvr.com/metas-reality-labs-revenue-growth-q2-2024/