The mystery is over: We now know whether or not Facebook is actually making money. In its first-ever earnings report released today, the social networking giant reported a net profit of $0.12 earnings per share on quarterly revenues of $1.18 billion. The earnings report matched Wall Street’s expectations of $0.12 earnings per share and revenues of $1.15 billion. Advertising revenue accounted for $992 million of the company’s total revenues. Facebook’s share price dropped by more than 11% in after-hours trading immediately following the news, dipping below $24. A major reason for the drop was that Facebook only made money on the quarter after excluding the negative impact of pre-2011 restricted stock unit compensation. Without that adjustment the company would have read more..
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