Facebook shares slumped by 10% in after-hours trading to hit an all time low following the company’s first earnings report after going public.
The report flagged up a continued slow in revenue and flat profit, which saw shares in the social networking group decline to $23.84, compared to an issue price of $38 in Facebook’s IPO in May.
The company reported a Q2 loss of $157m, or eight cents a share, due to stock-based compensation expenses associated with the IPO. That compares to a net income of $240m/11 cents per share in Q2 last year.
Total revenue came in at $1.18bn for the quarter, in line with analyst estimates, meaning that revenues grew 32% year-on-year representing a deceleration of growth from 45% in Q1 of 2012.
“We’re disappointed with how the stock has traded but we’re staying focused on the fact that we’re the same company as we were before,” said David Ebersman, Facebook’s chief financial officer.
The Financial Times says that Facebook executives are keen to continue aggressive spending particularly investing in R&D having added more engineers to its 4,000-strong staff.
84% of Facebook’s revenue came from advertising, which generated $992m for the company in Q2.