Facebook posts loss despite 32% rise in revenues

[88m3]

23 October 2012 Last updated at 17:29 ET
Facebook posts loss despite 32% rise in revenues

Facebook has posted a loss of $59m (£37m) despite seeing revenues rise 32% during the third quarter.

The world's most popular online social network revealed that its income rose to $1.26bn, between July and September.

The revenues exceeded expectations, but Facebook's performance remains in the red, following a loss of $157m in the previous quarter.

Facebook's shares have lost about 50% since its stockmarket listing in May.

The company is struggling to turn its online dominance into profits.

Facebook revealed that 604 million of its 1.01 billion users access its site using a mobile device.

"People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform," claimed the chief executive, Mark Zuckerberg, in a statement.
Advertising up 36%

A bright note for investors was that revenues from advertising increased 36%, between July and September, compared to the same period last year.

"Advertising revenue from mobile was the number that really stood out," said Arvind Bhatia, an analyst at Sterne, Agee & Leach.

Mobile revenue of $152.6m made up 14% of total advertising sales, which analysts said came in above their expectations.

Chief financial officer, David Ebersman, said Facebook had a "solid performance" in the third quarter.

Facebook did not provide guidance for the current quarter or beyond, a practice it has maintained since its first earnings report as a public company in late July.

BBC News - Facebook posts loss despite 32% rise in revenues

On its way to getting delisted

 

[Slystallion]

Since many more people are using their phones for fb advertisers won't spend as much since the phone screen is much smaller.

And regardless of rise in revenues that last quarter was not going to be overcome

 

[Ethnic Vagina Finder]

They need to create something else or buy another company with tangible products or paid services.

 

[88m3]

They need to create something else or buy another company with tangible products or paid services.

Facebook has made a bunch of their services pay to play breh


They're going to die.

 

[Ethnic Vagina Finder]

Facebook has made a bunch of their services pay to play breh


They're going to die.

Nah I'm talking about venturing into something outside of the realm of Facebook. The thing that made Facebook cool in the first place was that it wasn't monetized. You can only take it so far anyway. They need to do something totally different.

 

[88m3]

Nah I'm talking about venturing into something outside of the realm of Facebook. The thing that made Facebook cool in the first place was that it wasn't monetized. You can only take it so far anyway. They need to do something totally different.

Romney wants more Battleships.

 

[Hawaiian Punch]

Looks like the second engine on the plane malfunctioned

 

[-InFeRnO-]

not surprised.. their business model is all kinds of fukked up

 

[Ethnic Vagina Finder]

The sad thing is... Justin Timberlake warned them about this in "The Social Network"

The moment they went public facebook wasn't cool anymore. Now it's about kissing shareholder booty.