First Take: Facebook earnings don't address uncertainty

Story originally appeared on USA Today.

Investors still uncertain on Facebook's future a year after its initial public offering got little to convince them either way after it reported first-quarter earnings Wednesday.

The company's posted results were inconclusive. Adjusted earnings per share came in at 12 cents, a penny under Wall Street estimates. But unadjusted earnings per share of 9 cents beat the Street 's estimate by 2 cents.

Meanwhile, the company's revenue growth continues to slow even as the number of users keeps climbing, up 26% to 665 million in March.

Soaring costs, up 60% in the first quarter vs. a year ago, are cutting into the social media giant's bottom line.

Net income rose just 6.8% to $219 million vs. the same quarter in 2012. Uncertainty about Facebook's outlook is reflected in the stock price.

Shares rose 13 cents a piece to $27.56 each in after-hours trading Wednesday. That's 57% above the stock price's 52-week low hit in September, no doubt a welcome development for shareholders. But the price remains 39% below the all-time $45 a share intraday high hit on the first day Facebook was public, when shares debuted at $38 a share.

Investors are wondering whether CEO Mark Zuckerberg can ramp up revenue growth. It was 37.8% in the first quarter, down from the 44.7% revenue growth in the same quarter a year ago and the 40.1% pace Facebook achieved in the final quarter of 2012.

Another big issue is skyrocketing costs, which others companies in the Internet industry are confronting. First-quarter expenses totaled $1.1 billion, a 60% increase over the same period a year ago.

And rising costs are eating away at profit growth. Facebook's first-quarter net income grew just 6.8% to $219 million vs. the same quarter in 2012.

But while Facebook financials may not have been a home run, the company's customer base hasn't stopped growing -- no small feat. In March, the number of people who use its service actively on a daily basis is heading toward 700 million.