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Facebook posts a $157m loss

Still manages to hit analysts' expectations
Fri Jul 27 2012, 10:10
facebook-nasdaq

SOCIAL NETWORK Facebook continued to disappoint during its first earnings call on Thursday, reporting a net loss of $157m.

However, the social networking web site met analysts' expectations with revenues of $1.18bn and profits of 12 cents a share. The firm also saw monthly active users increase by 29 per cent over last year and reported mobile growth of 67 per cent.

"Generally, the earnings have growth. Earnings were solid but not spectacular." Gartner research director Brian Blau told The INQUIRER.

During the earnings call, Facebook founder Mark Zuckerberg was also keen to say that the company will focus on mobile going forward, with daily active mobile users having hit 543 million.

He said, "Our goal is to help every person stay connected and every product they use be a great social experience.

"That's why we're so focused on investing in our priorities of mobile, platform and social ads to help people have these experiences with their friends."

However, Zuckerberg was quick to downplay freshly resurfaced rumours that Facebook will offer its own smartphone device, saying it "wouldn't make sense" for the company to do so.

Facebook CFO David Ebersman also reiterated that the company will continue to focus on social ads and sponsored stories, which earn the company $1m in revenue every day.

"We're being very careful about the volume of sponsored stories in the news feed because it's so core to the user experience," said Ebersman during the call. µ

 

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