Is Facebook slipping at the worst possible time? Its quarterly revenues fell for the first time in two years in the first quarter of this year, the company revealed today.
Executives blamed seasonal advertising trends for the dip but the news comes at a sensitive time for the website with its initial public offering next month.
Reuters said the results were "a sign that the social network's sizzling growth may be cooling."
The Wall Street Journal commented, "Facebook's profit decline and rising spending show the strain the company is under as it challenges entrenched rivals to become one of the biggest players in Silicon Valley."
As for the projected valuation of about $100 billion out of the gate, "Facebook will be under pressure to quickly justify that sum to investors," said the WSJ.
The company had revenues of just over $1 billion over the first three months of the year - 6 percent down from 2011's final quarter but 45-percent more than the same period last year.
First-quarter profits were $205 million, down roughly a third from last quarter and 12 percent from last year.
However, good news: Facebook's monthly active user base totalled 901 million as of last month, up 33% from 680 million a year earlier.And now has 488 million monthly users on mobile phones.