Comparing Pre-IPO Facebook To Pre-IPO Google: Fair, Or A Case Of Apples And Oranges?

Facebook, in its updated S-1 released on April 23, dazzled us with more milestone user numbers: 901 million monthly active users, and 500 million on mobile. But it also reported a decline in revenues $1.058 billion compared to $1.131 billion in the quarter before — due to seasonality, Facebook explains. And perhaps more importantly, annual revenue growth is slowing, and in Q1 2011-Q1 2012 was 44.7 percent, nearly half of the 88 percent the year before. Some new data from Privco teases out those revenue growth numbers even further by comparing Facebook’s financials to those of pre-IPO Google, in an attempt to show that it is not seasonality but a more particular issue with Facebook. The picture is not pretty.