However, revenue beat expectations, with sales rising 32% to $1.18bn for the three months to the end of June.
Were it not for staff share schemes for the likes of chief executive Mark Zuckerberg, Facebook would have made a profit of $295m.
The number of monthly active users for Facebook was revealed to have risen by 29% from the equivalent period last year, bringing the figure to an enormous 955m users per month.
Nevertheless, Facebook's operating profit margin fell by 10% compared to the same figure recorded a year earlier.
The results are thought to be the result of Facebook struggling to find a way to appropriately adjust its profit-making strategy as more users choose to access the site on mobile phones rather than desktop computers, which has made things more difficult for the company to generate advertising revenue.
There are reports that Facebook is working with mobile manufacturers HTC to create a 'Facebook phone', to be launched in 2013.