Facebook is slated to go public next week, and it amended its S-1 for the 6th time yesterday.
Among the changes, it added a few notes about ads delivered per daily active user. Namely, the rate is decreasing.
Facebook states that its daily active users are increasing, probably because more people are accessing it via mobile devices.
But Facebook has yet to successfully monetise the mobile traffic. It’s been trying sponsored news feed stories in its mobile version, but as Facebook states in its S-1, “our ability to do so successfully is unproven.”
In the long term, its revenue growth could suffer.
Here’s what it states on page 14 of the S-1:
We do not currently directly generate any meaningful revenue from the use of Facebook mobile products, and our ability to do so successfully is unproven. We believe this increased usage of Facebook on mobile devices has contributed to the recent trend of our daily active users (DAUs) increasing more rapidly than the increase in the number of ads delivered. If users increasingly access Facebook mobile products as a substitute for access through personal computers, and if we are unable to successfully implement monetization strategies for our mobile users, or if we incur excessive expenses in this effort, our financial performance and ability to grow revenue would be negatively affected.”
But as Zuckerberg has stated time and time again, he’s more concerned with the product than revenue. In the S-1 Facebook states, “Our culture emphasises rapid innovation and prioritizes user engagement over short-term financial results.“
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