Facebook revenue declines ahead of IPO
Facebook has reported its first quarter-to-quarter revenue decline in two years.
In a regulatory filing the social giant said that its net income fell to £128 million in the three months that ended on March 31, down from £145.6 million a year earlier
"It was a faster slowdown than we would have guessed," said Brian Wieser, an analyst with Pivotal Research Group.
"No matter how you slice it, for a company that is perceived as growing so rapidly, to slow so much on whatever basis - sequentially or annually - it will be somewhat concerning to investors if faced with a lofty valuation."
The news comes as Facebook gears up for its IPO in which it hopes to raise £3bn.
While its revenue may have slowed its growth in popularity appears undimmed. The site surpassed 900 million monthly active users in the first quarter and its full-time staff has grown by about 1,100 employees to 3,539 over the past 12 months.