24 April 2012 - 5:49pm | posted by | 0 comments

Facebook takes a dip as the IPO nears... but users pass 900 million

More users ... less revenueMore users ... less revenue

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.

Be the first to comment on this article: sign in or register.

Latest Projects from the Profile Hub

Invitations With Gravitas

29/01/2015
Denmore Press - Prestigious Invites & Bespoke Envelopes...

The Dogs Trust relaunch with a responsive website!

29/01/2015
The challenge Dogs Trust, the largest dog welfare charity...

Responsive Website for B2B publisher Incisive Media

28/01/2015
How do you bring a major B2B publishing firm’s website into...

The Launch of the New Generation Hyundai i20

28/01/2015
The start of 2015 marked the launch of the New Generation...

Generating Coverage is Plain Sailing for Cruise Nation

27/01/2015
The Rooster team has continued to generate high levels of...