Facebook Reports Q1 2012 Earnings; $1.05 Billion in Revenue, $205 Million in Profit

Facebook, which is expected to go public on May 17, has just released a new S-1 filing, which details its earnings for Q1 2012, as well as some other updates related to its business.

Facebook generated nearly $1.058 billion in revenue last quarter, with a net profit of around $205 million. Its revenue growth has slowed down as expected, as the base effect comes into picture and Facebook finds it hard to continue growing at the pace it traditionally has.

Of the total revenue, around $872 million was generated through advertising on its platform, and $186 million was generated by payment fees on virtual transactions.

It also released some updated user metrics — Facebook now has more than 901 million monthly active users, up from 845 million a quarter ago. It is seeing high engagement levels, with its daily active user base at 526 million. It is also seeing tremendous growth in mobile usage, with over 500 million mobile MAUs in April 2012.

Besides the usual financials, Facebook also released more details about the Instagram acquisition and its patent purchases.

It acquired Instagram in April for $1 billion. Of that, $300 million was paid in cash, and the rest was in the form of 23 million Facebook shares. This internal valuation values Facebook at $77 billion, which is much lower than the $100 billion IPO figure quoted often in the press.

Facebook also announced that the break-up fee for the Instagram deal is around $200 million.

It also announced that it acquired 650 patents from Microsoft for $550 million. It will also get licenses for other AOL patents owned by Microsoft as part of this deal. This is primarily a defensive measure, as Facebook gears up to defend itself from patent lawsuits like the one filed by Yahoo earlier this month. It has now acquired more than 1400 patents, and has around 50 of its own.

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