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Facebook Q1: 901M Users, $1.06B in Revenue; Instagram Gets $300M in Cash

Due to its impending IPO filing, Facebook has released its first quarter earnings in an updated S-1 filing to the SEC. The social network pulled in $1.06 billion in revenue, up from $731 million year over year. Their income did slide to year over year to $205 million from $233 million.

Monthly users have increased by 32 percent year over year from 682M to 901M, with 526M daily users. 300M photos are uploaded daily.

Facebook also commented on the Instagram deal, revealing that the deal included $300M in cash, and 23 million shares. Facebook stated,

“Following the closing of this acquisition, we plan to maintain Instagram’s products as independent mobile applications to enhance our photos product offerings and to enable users to increase their levels of mobile engagement and photo sharing.”

The agreement also contains a $200M breakup fee if it fails.

Facebook spoke on the Yahoo patent lawsuit as well, stating that an unfavorable outcome could have a negative effect on business, a customary measure for an SEC filing.

“From time to time, we receive notice letters from patent holders alleging that certain of our products and services infringe their patent rights. Some of these have resulted in litigation against us. For example, on March 12, 2012, Yahoo filed a lawsuit against us in the U.S. District Court for the Northern District of California that alleges that a number of our products infringe the claims of ten of Yahoo’s patents that Yahoo claims relate to “advertising,” “social networking,” “privacy,” “customization,” and “messaging.” Yahoo is seeking unspecified damages, a damage multiplier for alleged willful infringement, and an injunction. We intend to vigorously defend this lawsuit, and on April 3, 2012, we filed our answer with respect to this complaint and asserted counterclaims that Yahoo’s products infringe ten of our patents. This litigation is still in its early stages and the final outcome, including our liability, if any, with respect to Yahoo’s claims, is uncertain. If an unfavorable outcome were to occur in this litigation, the impact could be material to our business, financial condition, or results of operations.”

Facebook is expected to go public on May 17th, according to Alexia Tsotsis of TechCrunch.

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