Facebook posts loss in first earnings after IPO

Facebook reported a loss of $157 million Thursday in its first earnings after its public offering, as reserves set aside for stock grants offset results largely in line with expectations. The world's biggest social network, which made a market splash in May, said that excluding special items, its results for the second quarter showed a profit of 12 cents a share, in line with most forecasts, as revenue rose to $1.18 billion. The loss stemmed from accounting rules requiring Facebook to set aside reserves from restricted stock units before 2011, which were disclosed when the company went public. The results showed growth for Facebook in overall revenue, operating profits and the number of users -- which grew to 955 million by the end of the quarter. Revenue for the second quarter totaled $1.18 billion, an increase of 32 percent from the same period a year ago. Advertising revenue -- 84 percent of the total -- was $992 million, up 28 percent. Excluding share-based compensation and related expenses, profits from operations for the second quarter were $515 million, compared to $477 million for the second quarter of 2011. In the release, Facebook said its monthly active users rose to 955 million as of June 30, an increase of 29 percent year-over-year. Daily active users increase 32 percent to were 552 million and mobile active users rose 67 percent to 543 million.