Meta

's Reality Labs, the division that has lost billions of dollars in the last 5 years, has significantly outperformed expectations in 2024, exceeding nearly all sales and user targets, according to an internal memo by company chief technology officer (CTO).
Seen by Business Insider, the memo by Meta CTO

Andrew Bosworth

announced the division’s 40% sales growth in a post on Meta's internal Workplace forum.

"2024 was a pivotal year for Reality Labs and positioned us for greatness in 2025," Bosworth wrote, highlighting the team's success in achieving ambitious goals.
"The team beat nearly all of last year's aggressive sales and user goals, growing RL sales >40% YoY overall," he added.

He also noted "massive sales growth in wearables" and the continued strength of the Quest brand.
According to Bosworth, strong holiday demand was further evidenced by the

Horizon app

, required for setting up

Meta Quest VR

headsets, topping the free app charts on Apple's App Store in the US and UK on Christmas Day.

Despite the positive news, Reality Labs remains under scrutiny due to substantial losses incurred from heavy investments in AR/VR technology. The unit recorded an operating loss of $4.97 billion while generating $1.1 billion in sales during the fourth quarter.
In the third quarter, Reality Labs reported a $4.4 billion operating loss and $270 million in revenue, a 29% year-on-year increase. Since 2020, the division has accumulated over $50 billion in

operating losses

.
Meta plans to invest between $60 billion and $65 billion in 2025 to expand its computing infrastructure related to AI.