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Friday, July 27, 2012

Facebook reports quarterly loss but revenue is up

Facebook has reported financial results for the second quarter of its financial year. This is the first quarterly report since the social network floated on the stock market just over two months ago.

Revenue was up 32% year-on-year to $1,184 million - up from $895 million in Q2 2011 - but net income dropped to a $157 million loss. The loss was mainly due to the cost of staff share schemes; without this, profits would have risen from last year. Around 84% of total revenue came from advertising.
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The number of monthly active users (MAUs) on Facebook is currently 955 million people (a 29% year-on-year increase), with mobile MAUs up 67% to 543 million.

Mark Zuckerberg, Facebook founder and CEO, said “Our goal is to help every person stay connected and every product they use be a great social
experience. That's why we're so focused on investing in our priorities of mobile, platform and social ads to help people have these experiences with their friends.”

Also this week, Facebook announced that it was creating a new engineering team in London. It says the team will eventually focus on building products in key areas like mobile and platform. Facebook already has engineering bases in Menlo Park, New York and Seattle.

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Author: The Fonecast
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