Feeds

Facebook prospectus shows jump in users, fall in profits

SEC requirements are a bitch

Reducing security risks from open source software

Facebook's latest pre-IPO filing shows the social network giant ramped up to 901 million users, who produce 3.2 billion likes and comments a day.

Oh, and it said its net income slipped on the year as operating expenses ballooned.

The updated S1 filing covered the period up to March 31, and bombarded potential investors with lots of interesting graphics, including that jump from 431 million active users last year to 901 million this year. Hard-headed Wall Street types will be pleased to know 300 million pics are being uploaded a day and the site has also spawned 125 billion friendships.

However, some killjoys, including the regulatory authorities, seem to think that what really matters in a financial statement is financial information.

These showed the friend machine turning in $1.06bn dollars in the quarter ending March 31, a cracking 44.7 per cent up on last year's $731m. However net income slipped from $233m a year ago, to $205m this year, a 12 per cent drop.

The main culprit was simply a dramatic rise in costs and expenses, up from $343m a year ago to $381m. The figures don't take account of more recent expenses such as Mark Zuckerberg's $1bn go-it-alone purchase of Instagram, or this morning's hoovering up of a sack load of old AOL IP.

The exciting user information and boring financial info was followed by the usual boilerplate of, like, really dull risks and business stuff.

Does anyone really care that in 2011 and the first quarter of 2012 that 19 per cent and 15 per cent of Facebook's revenues derived from Zynga, or third-parties associated with it, and that any screw-ups on Zynga's part, or a falling out with it could hit Facebook's business hard?

Or that its costs are "growing quickly, which could harm our business and profitability". Like they have already.

Or that "Certain of our user metrics are subject to inherent challenges in measurement, and real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business" and "We estimate that false or duplicate accounts may have represented approximately 5-6% of our MAUs as of December 31, 2011."

Or that the Instagram, which Zuckerberg sealed the other week, will cost the firm $300m cash and 23 million shares. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.