Reuters is reporting that two sources told them that Facebook’s 2009 revenue was between $700 to $800 million in 2009, which if true would be a couple hundred million higher than previous outside estimates.
Facebook is a privately held company and under no obligation to report earnings to the public, and Reuters said that the company declined to comment on the report. The report also said that Facebook made a net profit “in the tens of millions” last year.
$800 million is frankly not that unbelievable, as Facebook saw rapid growth in 2009 – from about 150 million active users at the beginning of that year to over 350 million at the end – that coincided with a number of mega-brands launching Pages and ad campaigns on the site. Of course, this is even more impressive as the United States was in a deep recession for almost all of 2009.
If we take the halfway point in users, say 250 million, and the halfway point of the Reuters revenue estimate, say $750 million, then Facebook made about $3 per active user in 2009 (we suspect that this will continue to rise in the future – $10 per user isn’t that far of stretch to us). If everything stays constant, then we’ll assume the 500 million users right now will be the halfway point, so at $3 per user, Facebook (again if everything is stays more or less constant which is of course not a given) then Facebook should reasonably expect to make $1.5 billion in 2010.