Facebook Makes a $157m Loss in Q2

Alex Spencer

Facebook has posted a net loss of $157m (£100m) for Q2 in its end of quarter report – its first as a public company. By comparison, it reported a net income of $205m in Q1, and $240m in Q2, 2011. As a result, Facebook's share price dropped 16 per cent, to $22.37.

But it's not all bad news – total revenue increased by 32 per cent, to $1.18bn, with advertising making up the majority of that, at $992m. It wasn't revealed exactly how much of that came from mobile, but on the accompanying conference call, Facebook CEO Mark Zuckerberg said that Sponsored Stories were generating over $1m a day in revenue, and that mobile accounted for “about half” of that number.

Facebook's monthly active users on mobile increased 67 per cent from the same period last year, to a total 543m. That's over half of the total monthly active users, which grew 29 per cent year-over-year to 955m. And according to Zuckerberg, mobile users are on average 20 per cent more likely to use Facebook on a given day than desktop users.

“Our goal is to help every person stay connected and every product they use be a great social experience,” said Zuckerberg. “That’s why we're so focused on investing in our priorities of mobile, platform and social ads to help people have these experiences with their friends.”