Facebook’s Q2 2012 Financial Results
[View Facebook’s current shareprice here.]
- Facebook shares dropped 11% in after-hours trading to a new low.
- They posted a net loss of $157 million, in-line with expectations from “stock compensation charges” - part of the IPO process in May.
- For comparison, he year-ago quarter saw $240 million in net income.
- Overall revenue for the quarter was $1.18 billion, up 24% from the year-ago quarter of $895 million.
- They now employ over 4,000 people, up 50% from a year ago.
- No outlook provided for Q3. Interesting.
- Zuckerberg: it doesn’t make sense for Facebook to build it’s own mobile phone. [Facebook is THE most-used app on any mobile platform.]
- No update on Instagram.
Facebook now claims 955 million users. This is up from 739 million from the same time last year. Of those users, still over half use Facebook on mobile devices, and mobile users are 20% more likely to use the site every day. As a result (this isn’t news), they’re investing more in mobile than ever before, and we should expect to see a “frequency of improvement in mobile experiences.”
Facebook’s “Sponsored Stories” ad unit brings in more than $1 million a day, with about half specifically on mobile devices. They’ve had extremely strong interest in mobile from advertisers - something shareholders have been waiting and hoping for. After all, with such a huge number of users accessing the site from mobile devices, they’ve been losing money by not previously having a mobile ad product.
They’re making big efforts to get more small and local businesses as advertisers.
They’re also continuing to “invest in the gaming ecosystem.” Did they miss the abysmal earnings report that sent Zynga stock straight for the drain?
Facebook says about Yahoo!: “a very good relationship” and congratulates Marissa Mayer on her new role as CEO.