Facebook finances leaked onto the net

by Fredrik Savin on 01/02/2008 · 0 comments

There has been a lot of speculation in the media during the last year about Internet’s latest phenomena Facebook and its profitability. An article by the Economist published in October 2007 suggested that Facebook might generate revenues of some $100m this year. Microsoft later paid $240m for 1.6% of the company – which valued the company to as much as $15bn – an amount many experts think is mad.

It now looks like the finances of the private-held company finally have been leaked onto the Net. Kara Swisher at AllThingsD.com, part of the Wall-Street Journal, has published the following financial metrics – which she claims comes from a meeting held by Facebook’s CEO and founder, Mark Zuckerberg, yesterday:

  • 2007 Revenues: $150 million
  • 2008 Revenues: $300 to $350 million (projected)
  • 2007 Headcount: 450
  • 2008 Headcount: 1,000 (projected)
  • Capital Expenditures: $200 million (i.e., servers)
  • EBITDA*: $50 million
  • 2008 Cash Flow (EBITDA – Capital Expenditures): negative 150 million

*EBITDA = Earnings before interest, taxes, depreciation and amortization

Sounds like a fantastic investment opportunity – doesn’t it? But of course, the figures can change dramatically if Facebook would make a breakthrough in social network monetization – such as their very own version of Google Ads.

Read Karen’s article for more information.

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