Facebook has amended its IPO forms and the changes are significant. The social networking giant admits in the revised docs that while “daily active users (DAUs)” are on the rise, those numbers are outpacing the average number of ads delivered each day. AllThingsD breaks it down for us:
But as Facebook points out in its risk factors section, it’s all because of mobile. More than half of Facebook’s 900 million monthly active users (or MAUs) are accessing the site on a mobile device. But unlike its desktop ads business, the company has yet to truly monetize mobile.
TechCrunch points out that analysts associated with Facebook’s IPO roadshow are worried about how mobile usage will impact the site’s ad revenue. As the user base shifts from mobile to the web, Facebook is showing those users fewer ads. Investors may not want to wait while Zuck & Co. try to figure out less obstrusive ways to insert ads on mobile’s smaller real estate. In his shareholders letter, Mark Zuckerberg may have said its all about prioritizing “user engagement over short-term financial results,” but advertisers are not going to be happy that those mobile users are less enagaged with their ads.