Facebook revenue rises 32 per cent

Reposted from The Globe and Mail

Facebook Inc.’s revenue increased 32 per cent 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 per cent a t $25.20 in after-hours trading on Thursday.

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 with 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-billion, compared with $ 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 per cent 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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