Facebook Revenue Sources
THE REVENUE SOURCES OF FACEBOOK.COM
Facebook Revenues Up to $700 Million in 2009, On Track Towards $1.1 Billion in 2010
Facebook is tight-lipped about its revenue numbers, which is typical of private companies. The most it has said publicly is that it became “free cash-flow positive” as of last September. At the time, we estimated it was set to bring in around $550 million for the year in revenues based on previous reports that we and others had heard, and from our own calculations. But how did the year actually end? Somewhat higher. And sources estimate the company could make between $1 billion and $1.1 billion in total revenue this year.
It ended 2008 making between $280 million and $300 million, according to many reports. The company’s revenues likely reached between $600 million and $700 million for 2009, according to a variety of industry sources we spoke with. The estimates match what we heard in September, which was that $550 million was looking too low – 2009 was clearly a big year for the company in terms of building its business, as we’ve been covering.
The company has been roughly doubling its revenues every year — 2007 came in at $150 million. We expect that trend to continue for the foreseeable future, making Facebook a multi-billion dollar company within the next few years. The question is becoming how Facebook can hit the inflection point where its revenues increase much more quickly.
Of course, it is not commenting on this story, except to provide the following statement:
Facebook is a private company, and we do not publicly disclose our financial results. We understand there is a great deal of interest and curiosity in our past and potential financial performance. However, external attempts to forecast revenue are fundamentally speculative and should be treated as such. We’re focused on building our business to be successful over the long-term.
2009 Revenue
How did Facebook make money last year? By growing multiple revenue sources,
Facebook Revenues Up to $700 Million in 2009, On Track Towards $1.1 Billion in 2010
Facebook is tight-lipped about its revenue numbers, which is typical of private companies. The most it has said publicly is that it became “free cash-flow positive” as of last September. At the time, we estimated it was set to bring in around $550 million for the year in revenues based on previous reports that we and others had heard, and from our own calculations. But how did the year actually end? Somewhat higher. And sources estimate the company could make between $1 billion and $1.1 billion in total revenue this year.
It ended 2008 making between $280 million and $300 million, according to many reports. The company’s revenues likely reached between $600 million and $700 million for 2009, according to a variety of industry sources we spoke with. The estimates match what we heard in September, which was that $550 million was looking too low – 2009 was clearly a big year for the company in terms of building its business, as we’ve been covering.
The company has been roughly doubling its revenues every year — 2007 came in at $150 million. We expect that trend to continue for the foreseeable future, making Facebook a multi-billion dollar company within the next few years. The question is becoming how Facebook can hit the inflection point where its revenues increase much more quickly.
Of course, it is not commenting on this story, except to provide the following statement:
Facebook is a private company, and we do not publicly disclose our financial results. We understand there is a great deal of interest and curiosity in our past and potential financial performance. However, external attempts to forecast revenue are fundamentally speculative and should be treated as such. We’re focused on building our business to be successful over the long-term.
2009 Revenue
How did Facebook make money last year? By growing multiple revenue sources,