Social notworking site Facebook has reported its first quarter-to-quarter revenue slide in at least two years.
According to 24 Hours the news could not come at a worse time. The outfit is trying to go public in the biggest ever Internet IPO.
While many Facebook users might blame the fact that it hsd been playing footloose and fancy free with personal data, and the fact that it had forced them to use the Timeline layout, the social notworking group blames seasonal advertising trends for the glitch.
Facebook wants to raise at least $5 billion in an initial public offering that could value the world's largest social network at up to $100 billion.
While people will still be dumb enough to sign up in droves for the shares, the fact that Facebook can't keep growing its advertising might make some investors dump shares quite quickly.
Spending at Facebook had doubled over the past 12 months, outpacing the 45 percent revenue increase during the period, it said. But Net income slid 12 per cent to $205 million in the quarter, from $233 million a year earlier.
Facebook said its advertising business slows down in the first three months of the year. The fact that things had been growing so much lately may have "partially masked" such trends to date, and seasonal impacts may be more pronounced in the future, Facebook said.
Revenue, which totalled $1.06 billion in the three months ended March 31, declined six per cent from the fourth quarter. It was the first quarter-on-quarter drop since at least 2010.
Wall Street is apparently concerned that Facebook has not worked out how to make more money in some international markets where it is growing the fastest, such as Brazil, India and the Philippines.