Facebook Posts $59 Million Q3 Net Loss, Reaches 1.01 Billion Users

October 24th, 2012 at 7:14 pm
 


It has been a mixed bag for social networking giant Facebook this 3rd quarter. There have been several concerns and issues happening to the social networking giant post-IPO. It is not really a banner year for the company that has taken the public route just two quarters ago. Some may say that Facebook may be on the way down, but it is still too early to tell. So far the quarterly performance may be considered just at par. Facebook enjoyed a fruitful quarter right after its IPO. But it may have recently come to its senses as it posts a loss this quarter.

Facebook has reported that it has registered a $59 million net loss for the fiscal 3rd quarter. Surprisingly, it came at the heels of the company seeing its revenue climb to $1.26 billion. This was a 32 percent increase from the revenues generated during the same quarter last year. And yet, the social network giant posted a loss, which the company believes to be a temporary hiccup in the overall financial picture.

Although Facebook may not have clearly indicated the reasons behind the loss, a part may have been due to the recent acquisition of Instagram, a valuable deal for the social network. Other reasons may be related to t5he accumulated taxes during the said quarter.

But despite the quarterly loss, Facebook is still quite upbeat as it recently announced that there are now around 1.01 billion Facebook active users who at least check their Facebook accounts once a month. It was also this year that Facebook reached the milestone of a billion users. It just shows that the Facebook may still have room to grow in terms of users. And this will only mean better business for the company.

For Facebook, what probably may be another thing to be upbeat about is the increasing number of mobile users which may someday be a potential revenue target for the company. There are now around 604 million Facebook users who check their accounts via their mobile devices. A revised iOS app and an improved Facebook Messenger will only lead to better things for the company. It is expected that the company will bounce back in the next quarter. But then again, many things have also happened before that may work against general expectations.

 

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