Report: Facebook Gifts Struggling?

According to a new report from Aggregift that picks apart public statements from Facebook, it appears the company’s latest venture Facebook Gifts has earned a maximum of $1 million in Q4 2012 revenue on Gifts, and maybe a lot less, TechCrunch reports, adding “Sure, it’s early days, but Facebook may need to look elsewhere for a bottom line game changer.” TechCrunch also noted that even though the Gifts platform didn’t rollout in the U.S. until December, it was the Christmas season, and Facebook highlighted Gifts in the Birthdays sidebar and at the top of the mobile feed, plus with a big call-out to buy last-minute holiday presents.

On the Q4 earnings call, CEO Mark Zuckerberg said: “I do want to temper near-term expectations a little bit on revenue coming from other areas like Gifts or Graph Search…Payments and other revenue also included around $5 million from sources outside of games primarily user promoted posts and to a lesser extent from our new Gifts product. While we remain excited about the long-term potential of commerce on Facebook, current revenue from user promoted posts and Gifts is very small, and we expect 2013 contributions from these initiatives to remain very small given current run rates.”

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