Facebook Inc. on Thursday posted its first public quarterly earnings report, which matched Wall Street analysts’ expectations but not those of investors.
The social-networking platform said the company had a second-quarter net loss of $157 million, or 8 cents a diluted share, for the period ended June 30, compared with net earnings of $240 million, or 11 cents, a year ago. Adjusted earnings, after excluding share-based compensation and related payroll tax expenses, was $295 million, or 12 cents a share, which matched what Wall Street analysts were expecting.
Revenue grew 32.2 percent to $1.18 billion from $895 million, beating Wall Street’s consensus of $1.15 billion. The company said revenue from advertising in the quarter was $992 million, a 28 percent increase from a year ago. Advertising revenue represents 84 percent of Facebook’s total revenue. The balance of the revenue base, or $192 million, was from payments and other fees.
Shares of Facebook fell 8.5 percent to close at $26.84 in over-the-counter trading shortly before it released its earnings report after the market closed. After-hours trading about an hour later was fast and furious every few seconds as shares of Facebook continued to change hands. The trading range was initially between $24.82 and $24.65. Trading was rocky at 5:10 p.m., when Facebook shares slipped to $24.50 before testing a lower trading range of $23.98 at around 5:18 p.m., when shares began gaining back some lost ground.
The company said it now has independent return-on-investment data from more than 60 advertising campaigns, using a variety of third-party methodologies, such as panels and marketing mix models. Seventy percent of campaigns had a return on ad spend of three times or better, and 49 percent showed a return of five times or better, the company said.
Among the operational highlights, Facebook said monthly active users were 955 million as of the end of the second quarter, an increase of 29 percent year-over-year. Daily active users rose 32 percent to 552 million on average, while mobile active users jumped 67 percent in the same period to 543 million.
Mark Zuckerberg, Facebook founder and chief executive officer, said, “Our goal is to help every person stay connected and every product they use be a great social experience.”
He indicated that the firm is focused on “investing in our priorities of mobile, platform and social ads to help people have these experiences with their friends.”
The company has said it plans to acquire Instagram, a photo-sharing app.