Facebook earnings and plans revealed
Posted February 1, 2008on:
How much Facebook earned last year? 50 million?, 100 million?
The actual figure is $150 million which Facebook’s 23-year-old CEO Mark Zuckerberg revealed in a company wide open call. Obviously Mr Zuckerberg didn’t think that these details could be leaked.
The Times carried an article on how the leaked figures look like.
Overall, the details are pretty interesting and show how the company is bracing up for the future. They say that they are going to invest $200 million of expenditure which looks like to be mostly on storage capacity. With millions of photos on facebook, that’s sure going to be a good investment.
What obviously doesn’t come up here is whether Facebook would be making any acquisitions ? I myself would think that if they had a cash pile, then an overture(which was acquired by yahoo) like acquisition would be the best investment for them given that all of their earnings come from serving ads.
Its true that Microsoft handles it for them now but given that Facebook’s revenues are all from ads – I won’t keep something as important as that disassociated from the company.
Let’s see how’s facebook performing in the context of SNS advertising market
Here’s a presentation on SNS(facebook) market valuation …to help you understand where facebook stands today in the over all SNS advertising market…..
Kara Swisher reports that Facebook CEO shared the company’s financial results for 2007 and outlook for 2008 at an all-hands meeting today (that included call-in access presumably for remote employees). The numbers:
- 2007 revenue came in at $150 million
- 2008 revenue is expected to be between $300-$350 million
- 2008 capex is expected to be $200 million
- 2008 EBITDA is expected to be about $50 million
In addition, he Zuckerberg predicted that Facebook should grow from 450 to 1000 employees in 2008. With over $300 million reportedly in the bank from recent investors Microsoft, Ling Ka-Shing, the Samwers, and others, Facebook should be in good shape to ramp up spend for at least the next couple years.