Published , by Donovan Erskine
Published , by Donovan Erskine
Today, Facebook (META) shared its earnings report for Q2 2022. In the report, the company chronicled its financial performance over the most recent period. In the last few months, Facebook missed on both EPS and revenue expectations. However, that wasn’t the only aspect of the company’s business that was hurting in the report. In Q2 2022, Facebook Reality Labs lost $2.8 billion.
Facebook’s (META) Q2 2022 earnings report was published on the company’s website earlier today. In the report, it’s revealed that Reality Labs brought in $452 million in revenue over the quarter. However, the division still lost $2.8 billion during that same period. Reality Labs is the group within Facebook (META) that’s working on AR and VR hardware and software. It’s the driving force behind the company’s desire to be the architect of the metaverse.
Facebook went on to say that it doesn’t expect things to get much better for Reality Labs in the upcoming quarter. “We also anticipate third quarter Reality Labs revenue to be lower than second quarter revenue. Our guidance assumes foreign currency will be an approximately 6% headwind to year-over-year total revenue growth in the third quarter, based on current exchange rates.” The company specifically points to the ongoing currency headwinds, a factor that Netflix recently attributed its slow revenue growth to.
Reality Labs losing $2.8 billion is quite significant, and will likely have a profound impact on Facebook’s (META) business in the coming months. It’s not the only piece of information found in the latest earnings report, as we also learned Facebook had 2.93 billion monthly active users in Q2 2022. For more on the latest business happenings at Facebook, Shacknews is your place.