Facebook-parent Meta on Wednesday reported that its quarterly revenue dropped year-over-year for the first time ever, as its profit plunged by more than a third.

The bad news reflects a troubled landscape for the social media powerhouse, which is battling the rising phenomenon of TikTok and a turbulent global economy.

Meta said that revenue in the recently ended quarter ebbed a percent to $28.8 billion when compared to the same period a year ago, missing market expectations.

"We're putting increased energy and focus around our key company priorities that unlock both near and long term opportunities for Meta and the people and businesses that use our services," CEO Mark Zuckerberg said in an earnings release.

It was the first such slip for the company since the firm, then known simply as Facebook, went public in 2012, said Wedbush analyst Dan Ives.

"The year-over-year drop in quarterly revenue signifies just how quickly Meta's business has deteriorated," said analyst Debra Aho Williamson.

"The good news, if we can call it that, is that its competitors in digital advertising are also experiencing a slowdown."

Meta however reported an increase in daily users, defying analysts' fears.

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The results came just hours after US regulators announced they would try to block Meta's acquisition of virtual reality fitness app maker Within, a potential blow to the tech giant's metaverse ambitions.

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Meta has made it a focus to build its metaverse vision for the internet's future, betting heavily on the interactive virtual world that the company believes will ensure its powerful position.

"This acquisition poses a reasonable probability of eliminating both present and future competition," the FTC complaint said. "And Meta would be one step closer to its ultimate goal of owning the entire 'Metaverse.'"

The social media giant said the FTC's move defied reality, and expressed confidence that its buy of Within would be good for VR users as well as developers who make apps in that market.

"The FTC's case is based on ideology and speculation, not evidence," Meta said in response to an AFP inquiry.

Meta has faced steady scrutiny from lawmakers and regulators over not only its massive strength in the social media market, but also its impact on the health of its users.

Meta is already a leading player in the virtual reality market, and Zuckerberg has stressed that the metaverse is key to the company's future.

The Silicon Valley titan years back bought virtual reality gear maker Oculus and studios devoted to apps for use in digital realms.

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