Like our Facebook Page Subscribe to LTG on YouTube RSS Feed Contact or Tip Us

Facebook Reaches 900 Million Users, Slips On Earnings

Radford C. Apr 24, 2012 0

Facebook talked about two things when it reported its quarterly earnings today: 900 million registered users and a slip in profits. For the first part, the social network giant is only 100 million users away from reaching its million mark along with healthy increase in daily active and monthly users. Facebook’s memberships total climbed to 901 million worldwide – 32.5 percent from the same period a year ago. The company’s daily active users, meanwhile, increased to 526 million, up 41.4 percent.

Profit for the quarter fell to $205 million, down 12 percent year-over-year, even though revenue grew 45 percent to $1.1 billion for the period. How did that happen? Chalk it up to recent hirings, research (mobile development) and promotion expenses as detailed in the report. Despite those costs, the report does not include the Instagram acquisition. Then, on top of that, Facebook also purchased 650 patents from Microsoft, adding to the 750 they purchased from IBM in an effort to fend off a large Yahoo lawsuit – another expense.

Analysts expect Facebook to have $6.1 billion in full-year revenue, compared to $3.7 billion last year.

Via »Deccan Chronicle