Facebook ’09 revenue neared $800 million

Facebook’s financial performance is stronger than previously believed, as the Internet social network’s explosive growth in users and advertisers boosted 2009 revenue to as much as USD 800m, according to two sources familiar with the situation. The company also earned a solid net profit, in the tens of millions of dollars last year, one of the sources said. That growth in profit and revenue underscores how Facebook is increasingly making money off its 6-year-old service, which ranks as the world’s largest Web social network with nearly half a billion users. That sort of performance is likely to whet the appetites of investors keen for a public share float, despite the company’s insistence that an IPO is not a near-term priority. Palo Alto, California-based Facebook, the booming social networking site dreamed up by Mark Zuckerberg and his buddies in a Harvard dorm room in 2004, is privately held and has released only very limited nuggets of financial information. 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. Estimates in various media reports had previously pegged the company’s 2009 revenue at USD 550m to USD 700m. The two sources said revenue in 2009 was in fact USD 700m to USD 800m

http://www.reuters.com/article/idUSTRE65H01W20100618

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s