Facebook Reports Lower Quarterly Revenues, Income

First, revenues in the first quarter are down by -6% sequentially, from $1.13 billion to $1.06 billion. Revenues for the quarter are 46% higher than in the same period a year ago, however, up from $731 million to $1.06 billion.

Net income fell from $233 million in the first quarter of 2011 and $302 million last quarter to $205 million in this quarter. Year-over-year the company’s cost of revenues rose by $110 million, marketing and sales costs rose by $91 million, R&D costs rose by $96 million, and G&A costs rose by $37 million. Sequentially total costs and expenses rose from $583 million to $677 million.

Facebook is offsetting is rising revenues with heavier expenditures and investors probably shouldn’t look for that to stop. Even the world’s largest social network has to continue to drum up business to keep the ship afloat.

The full filing is available here.

Paul Ausick