Why Did Facebook’s 10-K Scare Investors?

But the pages of Facebook’s 10-K also contained some figures that showed the company’s performance in a more positive light.

One beneficial change in Facebook’s business was its relationship with developers. The report showed that the social network had diversified its developer base beyond Zynga (NASDAQ:ZNGA). Non-Zynga payments remitted to developers tripled year-over-year, growing to $1 billion in 2012. In addition, the number of users buying virtual goods almost doubled since last year.

Pivotal Research Group analyst Brian Wieser also found positives in Facebook’s advertising numbers. In a research note seen by the Financial Post, he wrote that the company’s domestic revenues were higher than its earnings report initially indicated. In his opinion, the best measure of revenue growth comes from the geographic origin of advertising rather than the Facebook user. Wieser estimated that the budget for desktop and mobile advertising in the United States grew 27 percent in the fourth quarter from 24 percent in the third quarter and 8 percent in the second quarter.

Here’s how Facebook and Zynga are both trading over the past week:

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