With a grain of salt, there are reports that Facebook revenue is expanding so quickly, that in the year 2010 Facebook could do around one billion (USD) in revenue.
This of course is quite a jump from their expected $550 million in revenue for the year 2009.
The information comes from a report by TBI Research, which the SIA has been trumpeting for some time. The data is hard to give a full verification, but seems plausible. Given that Facebook is growing by hundreds of thousands of users daily, and is racing towards 400 million users, we can see them reaching half a billion users quite simply in the coming year.
That said, Facebook needs to extract, on average, some $2 from each active user. With the average daily page views that each user racks up, Facebook can suffer through a year of poor CPM rates and still come out with a billion, not including the numerous other Facebook revenue streams.
But Facebook still has one major trick up its revenue-sleeve: taxes. With companies such as Zynga raking in millions from the Facebook platform, Facebook could easily implement a 10% tax with little damage to its community, instantly raising tens of million more in revenue.
With such a brilliantly segmented market that Facebook has, making money is a piece of easy.
I want to see their financial statement over 2009 and I want to see which accounting firm signed off on it. Cause man, I am not buying their (projected) 2009 numbers.
When does Facebook’s financial year end? Is it at the end of the year?
Business Insider also did another post:
http://www.businessinsider.com/facebook-revenues-near-1-billion-2009-12
You should read the comments by some actual media buyers.
Time to start ranting about blogs:
Blogs are shit! when it comes down to fact checking.
Has anyone with a blog ever picked up a phone and asked around if this information was true? If it had any legs? Did anyone ever check if the Russian Investors, that invest millions into Facebook, actually exist?
Did anyone see an accounting statement from Facebook or an audit statement?
I only see short Twitter sized blog posts on some bogus numbers.
Facebook is Enron 2.0
It’s too good to be true. 2010 will be the year of the next internet bubble burst.
I hope all social media sits crash and burn.
Mwahahah (think Dr. Evil laughing)
End of rant. :D
Peace out.
It’s actually quite different in the United Statees, with private companies having much more latitude to keep their finances private. If we had access to the actual data, don’t you think that we would quote it to the penny?
All we can do is listen to well sourced and placed leaks and rumors, extrapolate based on the numbers that we have, and work with press releases. With public companies it is much easier.
In regards to the Russian news, you cannot (here, in the US), announce publicly investment, and have it be a lie without facing prosecution from your previous investors. That said, given that there was *not a single denial* anywhere to be found, from *anyone,* we can trust the investment, somewhat. More so, do you doubt every announced deal? Do you doubt that MSFT put money in? When a billion dollar fund or company makes a move, we tend to listen.
That is not why TechCrunch is so popular. Look at the Yelp story, did you believe that? Arrington could have just made it up. Nothing was ever sourced, or came to be.
But Facebook actually DOES make money, via their ad platform. Anyway.
6: aww, Twinkle, I know that you can take it. You are my favorite regular TNW commenter. Don’t go anywhere.
Point 1: In Holland EVERY company, big or small, private or listed, needs to publish their financial statement.
You need to mail a copy to your chamber of commerce! This, surely, must be true for companies in the states as well.
Point 2: Yes, we’re all just guessing. Blogs are guessing. Magazines are just guessing. Where are the hard numbers?
Point3: Blogs are shit when it comes to fact checking! Don’t take this personally it was a general comment. I read (here) posts about Russian investors that are claiming to invest millions into Facebook. Great, show me the accountant or notary that signed the deal. They send a press release and each and every blog post it word for word.
Point 4: You could call them out! That’s what you should do. That’s what makes TechCrunch so popular. Call three times and then call them out on not picking up the phone and answering questions.
Point 5: How soon do we forget the mistakes of the past.
Facebook is Enron 2.0.
A company Shrouded in secrecy about the way they make money. At the end of the day, no one could believe that golden goose Enron was a big giant scheme.
Point 6: Seriously dude, name calling will not get you anywhere. Take the blue pill. :P
Peace out.
@Alex, I do BELIEVE that they are making money. But these numbers are just stupendous!
If I was making this much green, I would show my friggin’ bank statement to the world.
I would point my finger to other companies and, like Ralphy in the Simpsons, go like: Ha Ha!
I would invite all bloggers in the US to my bank and ‘physically’ show them the money in my bank account.
I think it’s strange that all (even small) companies in Holland must actually publish their annual Balance Sheet and private companies in the US don’t have to do this.
You can learn so much just from a single balance sheet. Even certain company types, that are not even publicly traded, need to publish their EXTERNAL financial statement in Holland.
Facebook has an air of secrecy and hype surrounding it.
That’s why I am skeptic about all news around Facebook. I know that Microsoft put a shit load of money into Facebook. And I trust that this information is correct. MS is a publicly traded company and they have accountants checking their books and signing off on them. What accounting firm vouches for Facebook’s numbers?
MS is an investor in Facebook. But they overpaid enormously. MS simply had to overpay, because FB stock is not publicly traded. They can set their own asking price. No wonder these Russian investors, which I have never heard of, are buying into this craziness. Come IPO time, they can set a ridiculous price sticker on their Facebook stock.
There are no financial statements to back up that price sticker and that smells like a scam.
I am critical. The Dutch are raised to be critical. The world is flat? Sure, now prove it.
Everyone wants to forget the Bush years. We had two major financial crises during the Bush presidency. We are living in the aftermath of the second crisis. The first crisis showed us the fraud that was prevalent in American companies. Did we all forget Enron, Qwest and the US Food Group?
Dutch companies were heavily invested in these companies. They almost went bankrupt because of ‘clever’ accounting practices in these American companies.
Now, Alex, tell me not be skeptic about American companies.
You should be even more skeptic than me.
Point 6: You hurt my feelings.
I am going over to The Next Web Middle East and hang out with Fawzi :D
A few things. Despite the comedy of your comment, I’ll give it a fair shake.
1: You don’t get to see their finances, they are a private company.
2: People have long been talking about their revenue on a per calendar year basis, based on trailing revenue and projections for calendar years.
3: Blogs are not shit, and you agree because you keep coming here and commenting.
4: Ah yes, I could just call Facebook and ask them to spill their confidential secrets in public. We do as much fact checking as possible, trust me.
5: Enron 2.0? You discredit yourself, right there.
6: Rant is right. Ignorant rant is more right.
Twinkle – Most of your comments are pretty ridiculous. I would suggest you learn some finance/market ABC before you make comments on any website. I particularly laughed loudly when you naively said – “Blogs are shit!”. You may have some serious doubts in people’s educated analysis or research. Try to be open minded. After all – the world is still formed by rationales and logics – although it can be out of track before it comes back on.
BTW – I think Facebook’s fiscal year is just regular calendar year. Without this simple knowledge, I seriously think you are putting some “Bull-shit” comments here. No offense – anyone who did this deserves this feedback.