Monday, April 23, 2012

Facebook's growth slows down

Ahead of its proposed IPO in May/June this year, Facebook has come up with financial results for the Q1 2012. The results are bit disappointing for investors and potential investors who are thinking of a pie in IPO shares. Revenues crossed the magical $1 billion mark in last quarter, a healthy 55% growth Y-o-Y. But when you look at the bottomline, it was a bit concerning. Net profit for the quarter came down by 12% Y-o-Y, primarily driven by the expense factor. Marketing expenses have nearly tripled.

Facebook might be struggling to keep its revenue and user growth and spending a lot in marketing and ads. The company even cited in its recent filing that it may not sustain the growth level in coming months.

Here's the latest filing: http://sec.gov/Archives/edgar/data/1326801/000119312512175673/d287954ds1a.htm