Update: Facebook reports $157M loss as sales rise 32%
In first financial report as public company, Facebook blames loss on IPO-related costs
IDG News Service - Facebook boosted revenue by 32% in its first earnings report as a public company, bringing in $1.18 billion and topping analysts' expectations slightly.
The company reported a loss of $157 million for the quarter ended June 30, noting that after its imnitial public offering, it recognized $1.3 billion of share-based compensation and related payroll tax expenses.
Facebook reported a $240 million profit in the same quarter of last year.
Analysts polled by Thomson/First Call expected $1.15 billion in revenue. Adjusted for one-time expenses, earnings per share were in line with analysts' expectations at 12 cents. Those earnings are based on an adjusted net income figure of $295 million, slightly increased from adjusted net income of $285 million in the same quarter of 2011.
As expected, mobile users were the growth highlight for the company, increasing 67% year-over-year to 543 million as of June 30. Monthly active users were up 29% to 955 million, while daily active users were up 32% to 552 million on average.
"We're disappointed at the way the stock has traded, but it's important for us to remember that we're the same company now we were before, and we've got the same opportunities ahead," Facebook's chief financial officer, David Ebersman said in the company's earnings call.
Advertising revenue accounted for 84% of the total take at $992 million, up 28% year over year. Payments and other fees revenue were $192 million in the quarter.
Facebook said its mobile advertising efforts saw some progress during the quarter, and CEO Mark Zuckerberg suggested that Facebook will not try to build its own smartrphone, as some rumors have suggested.
But the company expects to continue the rapid pace of acquisitions it has maintained since it went public.
"Our strategy has been primarily to buy companies for talent," Zuckerberg said.
Facebook now has 4,000 employees, up by half what it had a year ago, and $10.2 billion in cash and investments on its balance sheet.
Cameron Scott covers search, web services and privacy for The IDG News Service. Follow Cameron on Twitter at CScott_IDG.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- HP HAVEn: See the big picture in Big Data HP HAVEn is the industry's first comprehensive, scalable, open, and secure platform for Big Data. Enterprises are drowning in a sea of data...
- Piecing Together the Business Intelligence Puzzle Business intelligence (BI) technology collects and analyzes company data, delivering relevant information to corporate decision-makers in an effort to produce favorable outcomes.
- Harness IT -- An Introduction to Business Intelligence Solutions Learn the key selection criteria required to provide your organization with the capability to address structured data, unstructured data and mobile demands so...
- Business Intelligence Shows its Smarts Today's Business Intelligence (BI) tools provide a new way to think about data with self-service capabilities and user-friendly analytics that can be used...
- Cloud Knowledge Vault Learn how your organization can benefit from the scalability, flexibility, and performance that the cloud offers through the short videos and other resources...
- Testimonial: Cystic Fibrosis Trust Peter Hawkins, the Head of IT for Cystic Fibrosis Trust, discusses the role CommVault's Simpana software platform plays in improving the company's information... All Data Center White Papers | Webcasts