A year ago, Mark Zuckerberg declared virtual reality the next frontier to drive Facebook's growth. But so far, there has been very little of it.

The company's share price has plunged, revenues are falling and profits are on the decline.

The picture worsened on Wednesday, after the company, now named Meta, updated investors on three months ended in September.

Sales shrank 4% compared to a year ago to $27.7bn, while profits halved.

The company, which also owns Instagram and WhatsApp, is struggling as companies cut advertising budgets in the face of economic uncertainty, changes to Apple's privacy settings undercutting its targeted ads, and competition from rivals such as TikTok heats up.

"While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth," chief executive Mark Zuckerberg said in a statement.

"We're approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company."

Investor confidence plunged in February, when the company revealed it had lost daily users for the first time ever. Then in July, the company reported its first quarterly decline in revenue, as companies spooked by the economic outlook cut their advertising budgets.

Shares in the firm are trading roughly 60% lower than they were at the start of the year, wiping hundreds of billions off the company's value.

When the former number two at the company, Sheryl Sandberg, announced her decision to leave in June, Mr Zuckerberg described it as the end of an era.

The company continues to generate large profits - nearly $4.4bn in the three months ended in September - but it has also fended off a decline in users.

The company said 2.93 billion people were active on one of its platforms daily in the three months ended in September, up from 2.88 billion in the quarter before.