This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/technology/2012/oct/23/facebook-socialnetworking
The article has changed 16 times. There is an RSS feed of changes available.
| Version 6 | Version 7 |
|---|---|
| Facebook shares rise as mobile growth spurs revenue increase | Facebook shares rise as mobile growth spurs revenue increase |
| (35 minutes later) | |
| Facebook has a billion users, the social media giant announced on Tuesday as it unveiled its latest quarterly results and modestly beat analysts' expectations. | Facebook has a billion users, the social media giant announced on Tuesday as it unveiled its latest quarterly results and modestly beat analysts' expectations. |
| The company hit a historic 1bn visitors early this month, climbing 26% from a year ago. The number of daily active users rose 28% to 584 million. The number of mobile monthly active users rose 61% to 604 million. | The company hit a historic 1bn visitors early this month, climbing 26% from a year ago. The number of daily active users rose 28% to 584 million. The number of mobile monthly active users rose 61% to 604 million. |
| Facebook posted a loss of $59m in the third quarter as costs and expenses rose 64% to $885m, but its advertising business posted a 36% rise in revenues to $1.09bn, accounting for the majority of the firm's $1.26bn revenues. Fourteen percent of ad revenues, about $150m, came from mobile, an area where the company and analysts have expressed concerns about making money. | Facebook posted a loss of $59m in the third quarter as costs and expenses rose 64% to $885m, but its advertising business posted a 36% rise in revenues to $1.09bn, accounting for the majority of the firm's $1.26bn revenues. Fourteen percent of ad revenues, about $150m, came from mobile, an area where the company and analysts have expressed concerns about making money. |
| "Our opportunity on mobile is the most misunderstood aspect of Facebook today," said Mark Zuckerberg, Facebook's co-founder. He said mobile would be "fundamentally good" for Facebook. | "Our opportunity on mobile is the most misunderstood aspect of Facebook today," said Mark Zuckerberg, Facebook's co-founder. He said mobile would be "fundamentally good" for Facebook. |
| The company's shares had closed the day at $19.50, close to half the price they sold for at Facebook's initial public offering in May. But they soared in after-hours trading, at one point rising 20%. | The company's shares had closed the day at $19.50, close to half the price they sold for at Facebook's initial public offering in May. But they soared in after-hours trading, at one point rising 20%. |
| Zuckerberg also defended the $1bn purchase of Instagram, the photo-sharing app company, made shortly before Facebook's controversial IPO. Zuckerberg said the number of Instagram users had grown to 100 million from 27 million since the purchase. He said that people spend more time on Instagram than on Twitter, according to Comscore's analysis. | Zuckerberg also defended the $1bn purchase of Instagram, the photo-sharing app company, made shortly before Facebook's controversial IPO. Zuckerberg said the number of Instagram users had grown to 100 million from 27 million since the purchase. He said that people spend more time on Instagram than on Twitter, according to Comscore's analysis. |
| Zuckerberg also addressed the problems at Zynga, the online gaming firm responsible for games including Words With Friends and Draw Something. Zynga's payments to Facebook dropped 20%. "Gaming on Facebook isn't doing as well as I'd like," Zuckerberg said. Zynga's shares have collapsed over 76% since its IPO in December 2011. | Zuckerberg also addressed the problems at Zynga, the online gaming firm responsible for games including Words With Friends and Draw Something. Zynga's payments to Facebook dropped 20%. "Gaming on Facebook isn't doing as well as I'd like," Zuckerberg said. Zynga's shares have collapsed over 76% since its IPO in December 2011. |
| In his second presentation to analysts, Zuckerberg spent much of his time trying to "dispel the myth" that the firm could not make money on ads. He said Facebook was just at the beginning of monetizing mobile, the fastest growing way that people access the service. Zuckerberg said 70% of mobile users visit Facebook every day and that he expected advertising revenues to be better on mobile as the ads will be more integrated into the service. | In his second presentation to analysts, Zuckerberg spent much of his time trying to "dispel the myth" that the firm could not make money on ads. He said Facebook was just at the beginning of monetizing mobile, the fastest growing way that people access the service. Zuckerberg said 70% of mobile users visit Facebook every day and that he expected advertising revenues to be better on mobile as the ads will be more integrated into the service. |
| Facebook has suffered after its much-hyped IPO fell spectacularly flat. The company was briefly valued at $100bn on its first day of trading but is now valued at $41bn. | Facebook has suffered after its much-hyped IPO fell spectacularly flat. The company was briefly valued at $100bn on its first day of trading but is now valued at $41bn. |
| After a sharp selloff that has triggered lawsuits from early investors, the company's shares have hovered at around $20 for weeks. Even news that the firm now has over a billion users worldwide has failed to cheer the stock price as analysts cooled on Facebook's ability to make money. | After a sharp selloff that has triggered lawsuits from early investors, the company's shares have hovered at around $20 for weeks. Even news that the firm now has over a billion users worldwide has failed to cheer the stock price as analysts cooled on Facebook's ability to make money. |
| Comments | Comments |
| 15 comments, displaying first | |
| 23 October 2012 11:49PM | 23 October 2012 11:49PM |
| I lose money ergo I get a Tax rebate. | I lose money ergo I get a Tax rebate. |
| Link to this comment: | Link to this comment: |
| 23 October 2012 11:52PM | 23 October 2012 11:52PM |
| Fuck, I seriously wish being an unemployed entity was as useful as being a loss making corporation. Piece of piss if you know what you are doing. | Fuck, I seriously wish being an unemployed entity was as useful as being a loss making corporation. Piece of piss if you know what you are doing. |
| Link to this comment: | Link to this comment: |
| 24 October 2012 12:10AM | 24 October 2012 12:10AM |
| adverts are vile; tawdry wittering paid for by the duped that purchase the flimsy hope of fulfillment | adverts are vile; tawdry wittering paid for by the duped that purchase the flimsy hope of fulfillment |
| Link to this comment: | Link to this comment: |
| 24 October 2012 12:35AM | 24 October 2012 12:35AM |
| How can a loss be a success? | How can a loss be a success? |
| Link to this comment: | Link to this comment: |
| 24 October 2012 3:31AM | 24 October 2012 3:31AM |
| I'm sorry? Facebook lost money, but they made money? Huh. No, they lost 59 million dollars. With any other company, people would be frantically selling their shares but there are still enough idiots in the world that thing this fake company is 'gold'. | I'm sorry? Facebook lost money, but they made money? Huh. No, they lost 59 million dollars. With any other company, people would be frantically selling their shares but there are still enough idiots in the world that thing this fake company is 'gold'. |
| When Facebook collapses, and it will, millions of people are going to lose their shirts. And btw, somebody really needs to ask Zuckerberg to PROVE Facebook has a billion members. I have four accounts there, none of which I use, and half the people I know are the same. I'm presuming I'm counted in Suckerberg's '1 billion'? | When Facebook collapses, and it will, millions of people are going to lose their shirts. And btw, somebody really needs to ask Zuckerberg to PROVE Facebook has a billion members. I have four accounts there, none of which I use, and half the people I know are the same. I'm presuming I'm counted in Suckerberg's '1 billion'? |
| Link to this comment: | Link to this comment: |
| 24 October 2012 3:49AM | 24 October 2012 3:49AM |
| Has anybody ever clicked on a facebook ad yet? | Has anybody ever clicked on a facebook ad yet? |
| Link to this comment: | Link to this comment: |
| 24 October 2012 4:54AM | 24 October 2012 4:54AM |
| Everyone who's ever going to use Facebook is using it, they aren't suddenly going to find a vein of new users, global ad spend isn't going to rise, there aren't areas of commerce that might suddenly move over to the internet. (Nor are people likely to start using a distrusted US corporation as an intermediary). | Everyone who's ever going to use Facebook is using it, they aren't suddenly going to find a vein of new users, global ad spend isn't going to rise, there aren't areas of commerce that might suddenly move over to the internet. (Nor are people likely to start using a distrusted US corporation as an intermediary). |
| So why are they likely to grow beyond the current ~$1bln revenue? I'd put the limit line for FB profits at $500mln - on Microsoft's PE of 15, that values them at $7.5 bln. | So why are they likely to grow beyond the current ~$1bln revenue? I'd put the limit line for FB profits at $500mln - on Microsoft's PE of 15, that values them at $7.5 bln. |
| Link to this comment: | Link to this comment: |
| 24 October 2012 7:14AM | 24 October 2012 7:14AM |
| I am not sure that FaceBook can effectively defend its access to its client base against competing providers (existing and future). My thought would be that Google and Apple amongst the most serious competition, as they move to provide more and more simple tools for people to maintain contact with friends and acquaintances. I don't see this as a good long-term growth stock & would actually expect usage and revenue to decline with time. | I am not sure that FaceBook can effectively defend its access to its client base against competing providers (existing and future). My thought would be that Google and Apple amongst the most serious competition, as they move to provide more and more simple tools for people to maintain contact with friends and acquaintances. I don't see this as a good long-term growth stock & would actually expect usage and revenue to decline with time. |
| Link to this comment: | Link to this comment: |
| 24 October 2012 7:34AM | |
| so for every $126 dollars they make from advertising and other revenues, they have to pay $131 for costs of hosting photos/videos, marketing, salaries etc. And both advertising rates and games revenues are on a downward trajectory. | |
| How is this a good business model? | |
| Link to this comment: | |
| 24 October 2012 7:36AM | |
| the last time I opened my FB account was late 2008. I bet that's included in the figures. Now I share my gf's account which is in her name. | |
| Link to this comment: | |
| 24 October 2012 7:49AM | |
| the last time I opened my FB account was late 2008. I bet that's included in the figures. Now I share my gf's account which is in her name. | |
| *whip-crack sound implying quoted poster no longer wears trousers* | |
| Link to this comment: | |
| 24 October 2012 7:56AM | |
| How can a company with one sixth of the world's population registered as users lose money? | |
| Perhaps they just got really unlucky and attract the sort of people the other five sixths of us could do without? | |
| Link to this comment: | |
| 24 October 2012 7:57AM | |
| That's what I was thinking. So - they made $1.09 billion - and still lost $59 million? Wtf do you spend $1.1 billion on in costs?! | |
| Link to this comment: | |
| 24 October 2012 7:58AM | |
| How can a company with one sixth of the world's population registered as users lose money? | |
| Not to mention one sixth of the world's pets... | |
| Link to this comment: | |
| 24 October 2012 7:59AM | |
| It's very childish of me, but I want Facebook to fail spectacularly and wipe the smile off Zuckerberg. He is just so flippin irritating. | |
| Link to this comment: | |
| Turn autoplay off | Turn autoplay off |
| Turn autoplay on | Turn autoplay on |
| Please activate cookies in order to turn autoplay off | Please activate cookies in order to turn autoplay off |
| Edition: UK | Edition: UK |
| About us | About us |
| Today's paper | Today's paper |
| Subscribe | Subscribe |
| Social network posts third-quarter loss of $59m, but revenues rise to $1.09bn as Mark Zuckerberg touts mobile successes | Social network posts third-quarter loss of $59m, but revenues rise to $1.09bn as Mark Zuckerberg touts mobile successes |
| Facebook has a billion users, the social media giant announced on Tuesday as it unveiled its latest quarterly results and modestly beat analysts' expectations. | Facebook has a billion users, the social media giant announced on Tuesday as it unveiled its latest quarterly results and modestly beat analysts' expectations. |
| The company hit a historic 1bn visitors early this month, climbing 26% from a year ago. The number of daily active users rose 28% to 584 million. The number of mobile monthly active users rose 61% to 604 million. | The company hit a historic 1bn visitors early this month, climbing 26% from a year ago. The number of daily active users rose 28% to 584 million. The number of mobile monthly active users rose 61% to 604 million. |
| Facebook posted a loss of $59m in the third quarter as costs and expenses rose 64% to $885m, but its advertising business posted a 36% rise in revenues to $1.09bn, accounting for the majority of the firm's $1.26bn revenues. Fourteen percent of ad revenues, about $150m, came from mobile, an area where the company and analysts have expressed concerns about making money. | Facebook posted a loss of $59m in the third quarter as costs and expenses rose 64% to $885m, but its advertising business posted a 36% rise in revenues to $1.09bn, accounting for the majority of the firm's $1.26bn revenues. Fourteen percent of ad revenues, about $150m, came from mobile, an area where the company and analysts have expressed concerns about making money. |
| "Our opportunity on mobile is the most misunderstood aspect of Facebook today," said Mark Zuckerberg, Facebook's co-founder. He said mobile would be "fundamentally good" for Facebook. | "Our opportunity on mobile is the most misunderstood aspect of Facebook today," said Mark Zuckerberg, Facebook's co-founder. He said mobile would be "fundamentally good" for Facebook. |
| The company's shares had closed the day at $19.50, close to half the price they sold for at Facebook's initial public offering in May. But they soared in after-hours trading, at one point rising 20%. | The company's shares had closed the day at $19.50, close to half the price they sold for at Facebook's initial public offering in May. But they soared in after-hours trading, at one point rising 20%. |
| Zuckerberg also defended the $1bn purchase of Instagram, the photo-sharing app company, made shortly before Facebook's controversial IPO. Zuckerberg said the number of Instagram users had grown to 100 million from 27 million since the purchase. He said that people spend more time on Instagram than on Twitter, according to Comscore's analysis. | Zuckerberg also defended the $1bn purchase of Instagram, the photo-sharing app company, made shortly before Facebook's controversial IPO. Zuckerberg said the number of Instagram users had grown to 100 million from 27 million since the purchase. He said that people spend more time on Instagram than on Twitter, according to Comscore's analysis. |
| Zuckerberg also addressed the problems at Zynga, the online gaming firm responsible for games including Words With Friends and Draw Something. Zynga's payments to Facebook dropped 20%. "Gaming on Facebook isn't doing as well as I'd like," Zuckerberg said. Zynga's shares have collapsed over 76% since its IPO in December 2011. | Zuckerberg also addressed the problems at Zynga, the online gaming firm responsible for games including Words With Friends and Draw Something. Zynga's payments to Facebook dropped 20%. "Gaming on Facebook isn't doing as well as I'd like," Zuckerberg said. Zynga's shares have collapsed over 76% since its IPO in December 2011. |
| In his second presentation to analysts, Zuckerberg spent much of his time trying to "dispel the myth" that the firm could not make money on ads. He said Facebook was just at the beginning of monetizing mobile, the fastest growing way that people access the service. Zuckerberg said 70% of mobile users visit Facebook every day and that he expected advertising revenues to be better on mobile as the ads will be more integrated into the service. | In his second presentation to analysts, Zuckerberg spent much of his time trying to "dispel the myth" that the firm could not make money on ads. He said Facebook was just at the beginning of monetizing mobile, the fastest growing way that people access the service. Zuckerberg said 70% of mobile users visit Facebook every day and that he expected advertising revenues to be better on mobile as the ads will be more integrated into the service. |
| Facebook has suffered after its much-hyped IPO fell spectacularly flat. The company was briefly valued at $100bn on its first day of trading but is now valued at $41bn. | Facebook has suffered after its much-hyped IPO fell spectacularly flat. The company was briefly valued at $100bn on its first day of trading but is now valued at $41bn. |
| After a sharp selloff that has triggered lawsuits from early investors, the company's shares have hovered at around $20 for weeks. Even news that the firm now has over a billion users worldwide has failed to cheer the stock price as analysts cooled on Facebook's ability to make money. | After a sharp selloff that has triggered lawsuits from early investors, the company's shares have hovered at around $20 for weeks. Even news that the firm now has over a billion users worldwide has failed to cheer the stock price as analysts cooled on Facebook's ability to make money. |