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Facebook Still Growing, With 901 Million Users, Ad Revenue Up 37pct

5:32 pm on Apr 24, 2012 (gmt 0)

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Facebook Still Growing, With 901 Million Users, Ad Revenue Up 37pct [guardian.co.uk]
Facebook's earnings and revenues fell in the first quarter of 2012, the company said in a regulatory filing ahead of what is expected to be a $100bn stock market sale.

The company has been spending heavily in the initial public offering (IPO). It said seasonal factors were also to blame for the slip, as advertisers spent less in the first quarter compared with the last three months of last year.

Facebook's revenue in the first three months of the year rose 45% year-on-year to $1.06bn, compared with the first quarter of 2011. But profit during the quarter dropped 12% to $205m from $233m a year earlier as costs soared.

7:59 pm on Apr 24, 2012 (gmt 0)

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I think Facebook is going to have financial problems in the future.

Their ad revenue is not big enough to support their expenses, servers and bandwidth etc.

Not only that but only big companies can afford to use their adverts.

I have tried them and they are good, as they can show a pic as well as text, and they can be targeted, but the click bids are just too high for me.

And they don't seem to be on the radar when it comes to forums and SEO marketers etc. Its always Google Adwords.

(maybe because they don't pay a commision like Adsense does.)