Meta, the parent company of Facebook, reported third quarter earnings, meeting expectations on revenue, but falling short on earnings per share and offering lower fourth quarter guidance than expected.

Revenue for the quarter came in at $27.7 billion, beating expectations of $27.4 billion. Earnings per share was $1.64 vs $1.89 expected. Daily active users came in at 1.98 billion versus 1.86 billion expected. Monthly active users was 2.96 billion versus 2.97 billion. The operating loss from Reality Labs was $3.67 billion versus $3.09 billion.

After the report’s release shares fell 11%.

Fourth quarter guidance came in at $30-$32.5 billion, versus an expected $32.2 billion. The company also noted that although it will pace the investments at Reality Labs after 2023, spending for next year will be significantly higher.

Social media is taking a beating from a digital advertising slowdown, as well as the fallout from an Apple privacy update which has impeded the ability of other companies to track users and target advertising. So far this year, Meta shares have fallen as much as 60%. Google reported a huge miss on Youtube advertising revenues on Tuesday and Snap’s earrings report showed revenue growth continuing to decline, with average revenue per user falling for the quarter.

In the meantime Meta is continuing to focus on its virtual reality Metaverse project. Earlier this month, CEO Mark Zuckerberg gave a presentation outlining future partnerships and objectives of the Metaverse, including deals with Microsoft (MSFT) and Accenture (ACN). The company has also announced its upcoming Quest Pro headset, with prices starting at $1,500.

The decision to focus on the Metaverse, which cost the social media giant $10 billion just in 2021, is not without its critics. Mark Zuckerberg recently received an open letter from Altimeter Capital CEO Brad Gerstner urging him to reduce spending on the project and perform aggressive staff cuts on the project.