Facebook To Release Third-Quarter Results Oct. 23

By Justin Lafferty 

Facebook announced that it will present its financial report for the third quarter Oct. 23. Much has changed since Facebook’s second-quarter report July 26, when the company reported that it lost $156 million in that time frame, despite an increase in revenue. What will Co-Founder and CEO Mark Zuckerberg say about Facebook’s progress over the past three months?

Facebook will host a conference call to discuss the results at 2 p.m. PT (5 p.m. ET) Oct. 23. The live webcast, as well as detailed reports, can be viewed that day at the Facebook Investor Relations website.

At the close of the market July 26, Facebook’s stock was worth $26.85 per share, but now the price hovers somewhere around $20.

In that second-quarter report, Facebook noted that the site had 955 million users and 543 million mobile users. Social advertising was also a major theme of the conversation, as the company said users would see more and more sponsored stories, especially on mobile.

A lot has changed since then. Facebook has enacted or tested several ways to boost revenue, such as more catering to advertisers, as well as growing more as an ecommerce hub. A couple of weeks ago, Facebook took a major step toward bringing more commerce to the site through Gifts. On Monday, the site announced the Pinterest-like Collections, another way to get money flowing through the site.

BTIG Analyst Richard Greenfield said that he actually thinks revenues will rise in the company’s third-quarter report, mainly because of Facebook’s myriad efforts to boost money-making ventures, but users will become turned off from the site because of the omnipresence of ads. Greenfield talked about Facebook’s future with CNET:

Unfortunately, we believe this ramp in advertising is negatively impacting the user experience on mobile devices by adding to an increasingly cluttered — less useful — news feed. In the face of drastically slowing payments revenues, falling investor sentiment, and employee morale, it feels like Facebook is pushing advertising monetization harder than it should be, which, we believe, will harm user engagement in 2013 and beyond.

Game developer Zynga, which is heavily tied into Facebook, has already given its preliminary third-quarter report, and it’s not exactly positive. According to sister site Inside Social Games, the company lowered its 2012 outlook and expects to report a net loss of $90 million to $105 million.

Zynga CEO Mark Pincus commented on the company’s third quarter in a statement:

The third quarter of 2012 continued to be challenging and, while many of our games performed to plan, as a whole, we did not execute to our satisfaction.

Readers: What do you think Facebook’s third-quarter report will reveal?