Facebook Revenues Screaming Toward $1 Billion

Facebook revenue growth is finally catching up with user adoption. Several sources close to Facebook tell TBI Research analyst Rory Maher that the company is about to hit a $1 billion annual revenue run-rate.  That’s a huge increase over the $550 million revenues Facebook will reportedly reach in 2009.

How has Facebook finally done it?

Mainly, by reaching scale. The company now has 350 million active users. Facebook.com has a Super Bowl-sized audience (or bigger) all the time. Even lousy ad products should make money against that. Rory writes that Facebook is also a billion-dollar business because:

  • Branded direct-sale inventory commands premium CPMs.
  • Self-service display advertising is going nuts.
  • Facebook targeting is like crack for advertisers.
  • Virtual goods and search are chipping in.



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