Meta Platforms (FB) reported third-quarter revenue of just $285 million its Facebook Reality Labs (FRL) division, which comprises its augmented and virtual reality operations, according to its earnings report released Wednesday. That was well short of consensus analyst estimates of $406 million, and down from $452 million in the second quarter.
Overall, FRL accounted for a loss of $3.7 billion in the quarter, up from a loss of $2.81 billion in the second quarter.
The company also said in a press release that it expected FRL’s operating losses in 2023 to grow “significantly” year over year. “Beyond 2023, we expect to pace Reality Labs investments such that we can achieve our goal of growing overall company operating income in the long run,” it said.
Meta shares were down almost 8% in after-hours trading on Wednesday. Shares are down more than 60% this year.
The company is scheduled to hold an earnings call with analysts at 5 p.m. ET.
This is a developing story and will be updated.