Even though Facebook saw sales rise 45 percent to $1.06 billion, the growth was a drop from the 55 percent increase in December. Along with the slowing sales growth, Facebook saw its marketing cost more than double, causing the company’s first-quarter profit to drop 12 percent right at the brink of its initial public offering.
Facebook is looking for a $75-100 billion IPO valuation, which would raise $5 billion in the largest-ever Internet IPO.
“Facebook unveiled a new benchmark that showed monthly revenue per user climbed 6 percent to $1.21,” Bloomberg reports. “The company valued its shares at $30.89 apiece at the end of January, up from $29.73 at the end of the last year.”
Advertising still provides the majority of Facebook’s revenue but it dropped to 82 percent from 83 last year. The company’s revenue from social gaming company Zynga also dropped to 11 percent of the total from 13 percent in the last quarter.
“Our costs are growing quickly, which could harm our business and profitability,” the company said in the filing. “Providing our products to our users is costly and we expect our expenses to continue to increase in the future as we broaden our user base, as users increase the number of connections and amount of data they share with us, as we develop and implement new product features that require more computing infrastructure, and as we hire additional employees.”
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Facebook could be pushing out its IPO until June… http://thenextweb.com/insider/2012/04/24/facebook-ipo-could-be-delayed-until-june-due-to-lack-of-involvement-from-mark-zuckerberg/
Facebook could be pushing out its IPO until June… http://thenextweb.com/insider/2012/04/24/facebook-ipo-could-be-delayed-until-june-due-to-lack-of-involvement-from-mark-zuckerberg/
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