Facebook reports Q1 fall despite annual revenues climbing 41%

Facebook has posted its first quarterly revenue fall in two years, despite increasing 41% year on year to $1.06bn (£656m) and active monthly users surpassing 900 million.

Facebook: posts Q1 results
Facebook: posts Q1 results

Net income for the world's largest social network fell slightly to $205m as costs nearly doubled to $677m.

Marketing and sales spend was up from $68m to $159m while research and development costs were up from $57m to $153m in the period.

The fall in profits comes ahead of the highly-anticipated float of the social media giant in May and could be a concern for potential investors.

The number of monthly active users on Facebook rose to 901 million, up from 678 million the previous year. Of these, Facebook said 488 million used Facebook mobile products.

The filling also reveals that Facebook agreed a $200m break-up fee to Instagram should its $1bn purchase fail to go through, and paid $300m and 23 million shares for the start-up.

Further disclosures in the filing include staff level growing by about 1,100 employees to 3,539 in the year.

Follow John Reynolds on Twitter @johnreynolds10

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Brands that forge an emotional tie are best protected from copycats
Shares0
Share

1 Brands that forge an emotional tie are best protected from copycats

Forging an emotional tie with consumers is one of the strongest ways to protect your brand. Products can be copycatted, but the distinctive identity of a true brand can never be replicated argues Nir Wegrzyn, CEO of BrandOpus.

Just published