Facebook reportedly generated revenue of $800m in 2009, more than double the previous year, fueliing speculation that the social network may be close to a flotation. Reuters reports that the company also earned a solid net profit, in the tens of millions of dollars last year, citing a sources familiar with the situation. However, the […]
Facebook reportedly generated revenue of $800m in 2009, more than double the previous year, fueliing speculation that the social network may be close to a flotation. Reuters reports that the company also earned a solid net profit, in the tens of millions of dollars last year, citing a sources familiar with the situation.
However, the firm has refused to commit to an IPO in the near future, despite its success aqnd a growing queue of eager investors.The 2009 results are significantly higher than some of the figures that Facebook had suggested earlier in 2009, as well as analysts’ estimates that have appeared in various media reports. Last July, Facebook board member Marc Andreessen told Reuters the company was on track to surpass $500 million in annual revenue for 2009.
21/06/2010
In September, Facebook said that it had become free cash flow positive, meaning that the company was generating enough cash to cover its operating expenses as well as its capital spending needs.
Estimates in various media reports had previously pegged the company’s 2009 revenue at $550 million to $700 million.
The two sources said revenue in 2009 was in fact $700 million to $800 million.
Big brands such as AT&T Inc, Ford Motor Co and Blackberry-maker Research in Motion all advertised on Facebook during the first four months of 2010, according to Internet analytics firm comScore.
If Facebook eventually seeks to go public, unveiling financial figures above expectations could help bolster investor interest. Facebook has so far declined to comment.
Meanwhile, in-house research revealed that close to half of Facebook’s 450m users have ‘defriended’ someone, indicating users are becoming more concerned about who has access to their personal details.
