Facebook’s Quarterly Report – First Revenue Report Post IPO
Ending all the suspense surrounding its first quarterly report post IPO, Facebook finally posted a net revenue of $1.184 billion which not only matched the expectations but also exceeded them.
With an IPO debut that was worse than a nightmare, all eyes were focussed on its second quarter financials for the year 2012. Revenue for Facebook’s second quarter in 2011 was $895 million and this year has seen a jump of more than 32% in revenues.
Of the $1.184 billion revenue, $992 million was from advertising (a 28% increase from the same quarter last year) while $192 million was from payments and other fees.
However, the stock markets don’t give much importance to revenue. What matters to it is the net profit and unfortunately for Facebook, it has incurred a loss of $157 million owing to the $1.3 billion payout as stock compensation post it’s May 18 IPO debacle. This lead to a big slide in its stock prices and it plummeted to $26.84 from $29.34, a loss of 8.5%.
What didn’t help was a dismal quarterly report from Zynga which is heavily dependent on Facebook.
But what will come as an encouragement to Facebook’s shareholders and my fellow social media marketers is that Facebook has grown to a 955 million monthly active and 552 daily active users. That’s a considerable jump from last year. Meanwhile, the mobile userbase of Facebook continues to increase and now has 543 million monthly active users from mobile, an increase of 67% from the same time last year.
Image courtesy: donkeyhotey