Social media giant Facebook claims seasonal advertising is to blame for its first dip in quarterly revenue in two years.
The network saw revenue fall by 6.5% quarter-on-quarter in the three months to March 31, according to Marketing Week.
Revenue remained over the $1bn mark - hitting $1.06bn - and was still strong year-on-year, up by 45%. However, profit dropped year-on-year to $205m - down 32% from the end of 2011.
Facebook says that dip is due to seasonal Internet marketing campaigns - as brands cash in on the festive rush. The company has also splashed out large sums in recent weeks as it prepares for its stock market IPO. It paid $300m for social photo app Instagram earlier this month. The spend on new acquisitions has overtaken its 45% revenue increase and eaten into profits, Facebook said.
The site also increased spend on marketing and sales, investing $123m more year-on-year to increase its appeal to potential investors ahead of the IPO.
Paid advertising makes up 82% of Facebook's total income - and has risen by 37% year-on-year. Facebook now has more than 900m active monthly users - generating some 3.2bn likes and comments every day.
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