Facebook’s Profit Falls 12% Ahead of Expected Offering

Mark Zuckerberg, chief executive of Facebook, which had revenue exceeding $1 billion.
Brian Snyder/ReutersMark Zuckerberg, the chief of Facebook, which had revenue exceeding $1 billion.

With its initial public offering drawing closer, Facebook disclosed on Monday that its profit in the first quarter fell 12 percent, to $205 million, as its expenses continued to climb.

Still, its revenue exceeded $1 billion for the second consecutive quarter, something the company is likely to emphasize when it begins its presentations to potential investors in the coming weeks.

The latest financial figures, disclosed in an amended prospectus filed with the Securities and Exchange Commission, may raise questions about whether Facebook will be able to command a high stock value when it goes public, a number built largely on the promise of continued growth. Analysts and company executives have estimated its potential value at more than $100 billion. Facebook has not disclosed the date of its public offering, but it is widely expected to become publicly traded in mid-May.  Read More


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Posted on April 28, 2012, in #social media and tagged , , , , . Bookmark the permalink. Leave a comment.


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