Facebook accidentally reveals revenue numbers

[Mike]

Facebook Accidentally Reveals Revenue Figures

By David A. Utter - Fri, 02/01/2008 - 6:22am.

Site should take in $300 million+ this year

Look for double the revenue, more new hires, and a lot of shiny new servers in 2008 at Facebook, according to CEO Mark Zuckerberg.
Someone at Facebook might want to be a teensy bit more careful in giving out dial-in numbers to company meetings. You never know where they could end up later.

Fortunately, Kara Swisher at All Things D ended up with the number. She took plenty of notes as Zuckerberg told an employee gathering at a Palo Alto theater about the company's finances.

Facebook took in $150 million in revenue in 2007. According to Zuckerberg, that should rise to the neighborhood of $300 million to $350 million in 2008.

More people will be onboard at the social networking company, as the current employee roll of 450 should pass 1,000 people this year.

Swisher also noted the company plans to make $200 million in capital expenditures, but earnings before interest, taxes, depreciation, and amortization of $50 million means Facebook would have negative cash flow of $150 million.

Microsoft's investment in Facebook provided ample cash to the company, which may have them less worried about the cash flow issue.

But considering Google's disclosure that social networking ads, which we have to take as meaning the company's deal with Facebook rival MySpace, have not performed well, Zuckerberg may have to worry a little more about the future.

If Google's Midas-like touch can't turn advertising on MySpace into gold, Facebook may have similar problems going forward in 2008.

Source: http://www.webpronews.com/topnews/2008/02/01/facebook-accidentally-reveals-revenue-figures

Is there still room in social networking?!

M.

 

[ihatebeans]

Thats pretty interesting.

My good friend was Zuckerberg's roomate at Harvard.

 

[duceman]

The overwhelming success of Facebook still amazes me.

 

[sashas]

I think the biggest problem with Social Networking sites is that most of the traffic is comprised of 13-25 yr. olds, school and college kids. These people don't really have lots of spare cash to actually buy stuff

 

[Mike]

I think the biggest problem with Social Networking sites is that most of the traffic is comprised of 13-25 yr. olds, school and college kids. These people don't really have lots of spare cash to actually buy stuff

Actually, the 18-24 buyers group is one of the most influential and strongest buyer groups/target markets available. They are easier to influence and follow a branding pattern - thus, perfect opportunity for social networking to achieve higher revenues by specifically targeting these buyers.

M.

 

[Dave_Z]

Facebook Accidentally Reveals Revenue Figures

Hmm, I wonder if that was indeed "accidental" since this'll generate publicity.

 

[Mike]

Hmm, I wonder if that was indeed "accidental" since this'll generate publicity.

Good point. Trailing in the wake of MySpace, this could very well be a publicity stunt, just with a "different twist"...

M.

 

[domainer50]

The overwhelming success of Facebook still amazes me.

You and me both

 

[sashas]

Actually, the 18-24 buyers group is one of the most influential and strongest buyer groups/target markets available. They are easier to influence and follow a branding pattern - thus, perfect opportunity for social networking to achieve higher revenues by specifically targeting these buyers.

M.

these people can be influenced to follow a brand later on when they are older and have more money.

Thats why social networking sites have value because of the potential to turn lifetime customers, not immediate customers.

 

[DomainMagnate]

$300M/year, so the $15bln figure is based on 50 years revenue?

 

[shaelheart]

The kids may have no cash but when they grow up they will be capable enough of buying the stuff that was advertised in social networking sites. Memory retention, perhaps.

 

[domainer50]

$300M/year, so the $15bln figure is based on 50 years revenue?

Wheres the 15bln coming from?

 

[DomainMagnate]

Wheres the 15bln coming from?

MSFT purchased a share of facebook based on that figure
http://newsvote.bbc.co.uk/1/hi/technology/7061398.stm

 

[domainer50]

MSFT purchased a share of facebook based on that figure
http://newsvote.bbc.co.uk/1/hi/technology/7061398.stm

Point taken. Thats pretty interesting. Didnt google offer them like 1 billion or something?

 

[richrf]

I've always been a bit leery of the social networking model. Frequent visitors pretty much learn to ignore all ads, so the question is how to monetize the business? Yahoo has a real problem with sell-thrus to repeat visitors. I think at the end, these social networking sites will either end up being a small part of larger business (e.g. Microsoft) or just disappear (I think Digg is a good candidate for the latter).

Rich

 

[DnPresident]

$300M/year, so the $15bln figure is based on 50 years revenue?

Maybe they think that $300,000,000 per year will snowball each year.....Gotta imagine the interest on the bank accounts as well.

 

[mr877]

i think facebook has already hit its peak, so i dont think thier revenue will snowball by 150 million every year. But I am sure they will make 300 million this year but no way can the go higher imo

 

[jmcc]

Bubble 2.0 anyone?

Regards...jmcc

 

[deleted984054565403]

i think facebook has already hit its peak, so i dont think thier revenue will snowball by 150 million every year. But I am sure they will make 300 million this year but no way can the go higher imo

I don't think it's quite there. When the next alternative is found to continue the Myspace, then Facebook trend, that's when Facebook will peak and begin its downward spin.