Still, the company's sales decline is expected to continue into next quarter. Meta said it expects revenue for the current quarter to be between $26 billion and $28.5 billion. Even at the high end, that would mark a 1.76% decline from the prior year.

Meta pointed to lower revenue from its VR unit, Reality Labs, and ongoing weakness in online advertising demand caused by economic uncertainty as factors behind the guidance. Other tech companies, including Twitter and Snap, are also confronting tightened advertiser budgets amid the economic downturn. Meta was already struggling after Apple's app tracking changes made it harder to target ads.

Meta shares fell as much as 5% in after-hours trading Wednesday following the earnings report before rebounding somewhat.

Hours before the earnings report dropped, the FTC moved to block Meta's acquisition of VR company Within, alleging that the tech giant is illegally attempting to grow its "virtual reality empire." While Meta called the injunction "wrong on the facts and the law," it highlights the potential regulatory hurdles the company faces in growing its virtual reality business.

Still, the company's sales decline is expected to continue into next quarter. Meta said it expects revenue for the current quarter to be between $26 billion and $28.5 billion. Even at the high end, that would mark a 1.76% decline from the prior year.

Meta pointed to lower revenue from its VR unit, Reality Labs, and ongoing weakness in online advertising demand caused by economic uncertainty as factors behind the guidance. Other tech companies, including Twitter and Snap, are also confronting tightened advertiser budgets amid the economic downturn. Meta was already struggling after Apple's app tracking changes made it harder to target ads.

Meta shares fell as much as 5% in after-hours trading Wednesday following the earnings report before rebounding somewhat.

Hours before the earnings report dropped, the FTC moved to block Meta's acquisition of VR company Within, alleging that the tech giant is illegally attempting to grow its "virtual reality empire." While Meta called the injunction "wrong on the facts and the law," it highlights the potential regulatory hurdles the company faces in growing its virtual reality business.