In the quarter ending June 30, Facebook posted a net loss of $157 million, or 8 cents a share, compared to a profit of $240 million, or 11 cents a share, in the year-ago period. On an adjusted basis, earnings came in at $295 million, or 12 cents a share while sales rose 32% to $1.18 billion, meeting consensus estimates of 12 cents a share on revenue of $1.15 billion.
Of that revenue, advertising grew 28% year-over-year to $992 million, far above the $921 million consensus. Advertising revenue accounts for 84% of Facebook's total sales. .Also worth noting is that the company reported that cash and marketable securities grew to $10.2 billion, which includes $6.8 billion in net proceeds from the initial public offering.
What’s more, even at these lows, the stock still looks expensive. It fetches 45 times expected 2012 earnings of 50 cents a share and 35 times 2013 earnings of 64 cents a share. While it’s far from the valuations discussed prior to the IPO, the stock still enjoys a hefty growth multiple. Critics enjoy pointing out that Apple trades at 13 times 2012 earnings, and that Google goes for 13.5 times. At those valuations, profits would rise 60% and 18%, respectively. Facebook’s profit is seen rising only 14%.
Facebook phone coming mid-2013
Facebook, owner of the largest social network, is working with HTC to build its own smartphone for release as soon as mid-2013, people with knowledge of the matter said. The companies had intended to release the device as early as the end of this year, and pushed back the timetable to give HTC more time to work on other products, said some of the people, who requested anonymity because the plans aren't public. Facebook is also developing a modified operating system for the device and has assembled a team of former Apple programmers to improve its iPhone application, people said. Read More..
Zynga has announced the release in early 2013 of its poker application that will involve real-money gaming.
Over the past year, Zynga has struggled to keep its foothold in the mobile gaming market as new entrants have entered the industry. Zynga’s solution: real-money poker, which is set to launch in the first half of 2013 in international markets. Read More..
Facebook Earnings: Analysts Calmer Than Stock Plunge
Overall results were better than feared, particularly after Zynga’s weak performance a day earlier. Importantly, we believe the company provided good detail on early traction of its new ad formats and initiatives, and we continue to expect revenue re-acceleration in the back half of 2012 and into 2013… We recognize that Facebook shares movements could disconnect from operating performance in the near term as lock-up expirations become a focal point for many investors Read More..
What to Expect When Facebook Is Expecting: Five Predictions for Facebook’s First Public Year
Mark Zuckerberg’s baby will be coming of age in a few days, just eight years after it was born in a Harvard dorm room. We’ve been there for the first steps, and the first missteps. But do any of us know what Facebook-all-grown-up-as-a-public-company will look like? I have five predictions of how Facebook will be maturing in the first year after its IPO Read More..
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