Even as Facebook nears the one billion user mark, its need for a new revenue source stood out in its first earnings release as a public company today.
One of the major concerns investors had about Facebook in its IPO was the decelerating growth of its advertising business, which accounted for 85 percent of its $3.7 billion in revenue last year. The trend continues: in the most recent quarter, advertising accounted for 84 percent of Facebook's revenue. Overall, the company's second quarter revenue totaled $1.18 billion, a 32 percent increase from a year earlier. That was lower than the 45 percent increase the company posted in the previous quarter from the first quarter of 2011.