Facebook’s First Earning Report Is Respectable: $1.18 Billion Quarterly Revenue, 955 Million Total Users
Facebook Inc. said Thursday that it booked a net loss of $157 million, or 8 cents per share in the April-June period, mainly due to stock compensation expenses following its IPO. That compares with earnings of $240 million, or 11 cents per share, in the second quarter a year ago.
The results come two months after Facebook’s stock landed with a thud on its first trading day, on May 18. The day began with glitches with the Nasdaq stock market that delayed trading by half an hour. It didn’t get much better from there. Despite months of hoopla that had investors thinking it would soar, the stock closed just 23 cents above its $38 IPO price. It has not reached that level since then.
Facebook had effectively warned investors before its IPO that Wall Street’s expectations were too high. In a filing issued a week before its IPO, Facebook said its mobile users are growing at a faster pace than the number of ads on its mobile platform.
That said, Facebook didn’t start showing ads on its mobile app until this spring. While it’s true that it was late to the game — after all, its mobile user base is growing fast — it doesn’t mean it won’t be able to in the future.
Overall, Facebook said its revenue from advertising totaled $992 million, representing 84 percent of total revenue and a 28 percent increase from the same quarter last year. It did not say what percentage was from mobile.
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