Tags: facebook | revenue | shares | slump

Facebook Revenue Rises 32%; Shares Slump Further

Thursday, 26 July 2012 04:30 PM

Facebook Inc's revenue increased 32 percent in the second quarter, as the social networking company said its number of users had grown to 955 million.

Shares of Facebook, which went public in a rocky initial public offering in May, were down 6.1 percent at $25.20 in after-hours trading on Thursday, after falling 8.5% during regular trading.

Facebook posted a net loss of $157 million, or 8 cents a share in the second quarter, due to hefty stock compensation charges related to its IPO, compared to net income of $240 million, or 11 cents, in the year-ago quarter.

Excluding the charges, Facebook said it earned 12 cents a share.

In its first report to Wall Street since the IPO, the world's No.1 social networking company said that revenue in the three months ended June 30 was $1.18 b illion, compared to $ 895 million in the year-ago quarter.

Facebook said it had 955 million monthly active users, up from the 901 million users at the end of March.

The eight-year-old company, started by Mark Zuckerberg in his Harvard dormitory room, became the first American company to debut at over $100 billion in value when it went public on May 18. But shares of Facebook are down nearly 30 percent from its $38 offering price, as investors worry about the company's ability to transform its growing mobile presence into ad revenue and the company's long-term money-making potential.

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Thursday, 26 July 2012 04:30 PM
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