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Leslie Walker

Facebook Revenues Up, Profit Down

By October 28, 2012

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Facebook had a big week when it released quarterly earnings on Tuesday, showing a loss of $59 million for the third quarter of 2012. The financial trend, however, was up, with the company's overall quarterly revenue rising 32 percent to $1.26 billion, according to the company's financial data.

Facebook watchers scour information released by the company, including financials, for clues to strategic moves the company is taking and what the results are likely to be.

This week, for example, Facebook said its active mobile users for the third quarter of 2012 were up 61 percent from the previous year, to 604 million. The company also reported that 14 percent of its total advertising revenue came from ads on mobile devices. Mobile ad dollars totaled only $150 million, but appear to be increasing steadily.

On a negative note, analysts pointed out that the revenue Facebook received from fees and gaming payments decreased in the most recent quarter by 9 percent, chiefly due to a 20 percent decline in revenue from Farmville-maker Zynga.

Chief Executive Mark Zuckerberg acknowledged in the earnings call with analysts that gaming on the social network wasn't doing as well as he'd like. In particular, he cited the revenue decline from Zynga, but he also noted that gaming revenue from other sources was rising.

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Comments
November 6, 2012 at 6:18 am
(1) zero360marketing says:

I guess ups and downs are just part of the business. but in order to be on a safe side face book should try to turn their losses into profits again.

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