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



0
Hi Sir,

Below is the link to Facebook's income statement

http://ycharts.com/financials/FB/income_statement/annual

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

2 Answer(s)


0

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.

0

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