Thursday, August 16

Facebook posts loss in first quarter result report

Facebook posts loss in first quarter result report

Kevork Djansezian / Getty Images

Facebook CEO Mark Zuckerberg said the company is focused on mobile, social show and the network development platform.

At 7 am ET updated: Facebook a loss reported Thursday in its first quarterly report as a joint-stock company, but sales rose from 32 per cent on the previous year levels to nearly $1.20 billion.

The results were about analyst expectations but Facebook shares (FB), already under severe pressure, decreased after release the result.

In a conference call with analysts, which was broadcast over the Internet, Facebook executives led by CEO Mark Zuckerberg said that they have worked hard to create new "social" advertising that the company make money the growing percentage of its users, to come to the service through mobile devices.

"An enormous opportunity for Facebook is mobile," said Zuckerberg.

"Our goal is everyone in the world," he said, adding that most people in the world will soon have a mobile device, so it makes sense to improve the mobile Facebook experience.

COO Sheryl Sandberg said the company has experimented with "sponsored stories" to pay the advertisers like Wal-Mart, to be sure, enable more users to display a particular piece of content in their news feed. She said that makes it possible to avoid the problem Facebook many media companies making money a hard time have the strategy with the small screen of mobile devices.

"Sponsored stories in the news are the cornerstone of our mobile advertising efforts", she said.

Zuckerberg said Facebook's opportunity to a platform for other developers build greater than generally understood.

He sketched out a future in which a new car buyers the car log on computer and immediately have access to contacts, music, restaurant, listings and the recommendation of friends would.

The social networking giant released a net loss of $157 million, or 8 cents per share, primarily by expenses in connection with its May 17 public offering. Without that of Facebook said that it earned 12 cents per share in line with Wall Street expectations.

Excluding share-based compensation and related personnel expenses tax said Facebook $515 million operating profit in the second quarter, compared with $477 million in the second quarter of 2011.

In the press release to Zuckerberg said that the company focused on "Mobile, platform and social show."

BTIG analyst Richard Greenfield said that investors were concerned that Facebook does not offer any evidence for his income going forward.

"Growth clearly slows down based on the user and revenue and without any commentary that people believe it is growing, have a large part of the investor fear," said he.

Facebook shares, which to regain even their $38 price fell $2.50 $26.84 before earnings were released, and by a further 10 percent in after-hours trading. Prior to the release Zynga, which accounts for more than 10 percent of sales of Facebook's Facebook were made due to the poor performance of result of of gaming company shares.

Michael Matousek, a senior trader at U.S. Global Investors Inc., Facebook said beating expectations, "but was the road looking for more."

"The big question which was how, it will earn its users billions or money," he said. "A lot people think you can convert these users not in money."

Facebook said that it had 955 million monthly active users, from 901 million users at the end of March. 84 Percent of its revenue or $992 million, generated from advertising.

The company has approximately 4,000 employees on the 30 June, up from 3,200 at the end of the year, a number that large user base was described as relatively Facebook's small.

Facebook was a massively hyped IPO, which widely as a failure, both due to technical mishaps and because the price of underwriters set could not keep, leaving legions of new, unfortunate investors.

CNBC's Julia Boorstin takes a look at Facebook's reported earnings in the last quarter.

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