Possible reasons for drastic change in the net income from one year to next year?

Hi Sir,

Below is the link to Facebook's income statement


Could you please explain why is there a huge difference in the net income of the company from years 2011-2012

2 Answer(s)


1. Technology companies such as FB are in investment mode for a long time.
2. If you notice even though their revenue went up by only 2x their R&D expense went up by 5x. That has a huge impact on the net income.
3. Their R&D is going up by so much because they are investing in hiring new engineers to improve the product.


depend on various reasons like hiring ,capex, amortization and sometime natural calamity