As we zero in on D-day, when Facebook is a stock for all to
buy into and fiscally dissect, the biggest social network once again amends its
S-1 filing for its IPO for the sixth time.
This latest update, filed Wednesday afternoon, to admit that
the mobile focus for the company has drastically slowed the pace that the
company adds new users and could end up hurting the company revenue in the long
run.
Since the original Facebook IPO filing, it has been
understood that the company has still been grappling with how to truly monetize
its mobile ecosphere since the platform doesn't incorporate Sponsored ads at
the same rate as the browser-based platform. Facebook has looked at the news feed to inject its paid
advertisements rather than banner or side-bar ads but finding the right
combination and testing it has not been as quick of a process as some may wish.
In the latest S-1 filing, the company state that it does
"not currently directly generate any meaningful revenue from the use of
Facebook mobile products, and our ability to do so successfully is
unproven."The filing goes on to point out that "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 .
. .”
So while Facebook is willing to admit the faults it has in
its mobile dvertisements, the company also is posting its expectations that
once it finds the right combination, it will again take off like a rocket. Facebook has started its roadshow for an expected May 18 debut
on NASDAQ and is crossing all of its t's and dotting all of its i's in these
last few days, as investors pick away at S-1 filings for more details that it
wants. One of these areas has clearly been in the mobile realm where everyone
has been looing to find new revenue and growth, both of which Facebook has
fallen short of and needs to provide better explainations about in order to get
all of the money-men on board.
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