Ronnie05's Blog

Facebook:300 million and counting; cash flow positive

Posted in Social context, media and advertising by Manas Ganguly on September 16, 2009

As of 15th September 2009, Facebook announced it has reached 300 million monthly active users around the world. The company has added 50 million users in just the 75 days, which counts upto 670,000 users per day. In 15th July, Facebook announced that it had reached 250 million.

Facebook 300

Facebook’s global audience has doubled since the beginning of the year, adding 150 million new users since January. Notably, over 71% of Facebook’s userbase resides outside the United States – as of today, the company reports 85 million active American users. Interestingly the userbase of Facebook (300 million) is roughly the size of the America.

Perhaps even more impressive is that the company also says it is now “free cash flow positive.” From the company blog post on the news, from founder Mark Zuckerberg:

We’re also succeeding at building Facebook in a sustainable way. Earlier this year, we said we expected to be cash flow positive sometime in 2010, and I’m pleased to share that we achieved this milestone last quarter. This is important to us because it sets Facebook up to be a strong independent service for the long term

Earlier this year, Facebook CEO Mark Zuckerberg had indicated that the company was expecting to see “70% growth in revenue year over year” in 2009 and that Facebook will be “cash flow positive in 2010.″ For all its detractors and critics, Facebook turned cash positive in Q2,2009. Facebook board member Marc Andreessen also recently said Facebook would do $500 million in revenues in 2009, up from an estimated $280-$300 million in 2008.

What’s driving Facebook’s revenue growth?

1. A combination of revenue streams

2. Facebook’s self-service ad business has been very strong lately

3. it continues to invest heavily in brand advertising efforts

4.and it also continues to release many experimental expansions to its virtual goods and virtual currency business, Facebook Credits.

5.The company is also still deriving revenue from its advertising deal with Microsoft, signed when Microsoft invested in Facebook in 2007.

Reference:

Profiling Facebook: The Google of social networking. https://ronnie05.wordpress.com/2009/02/24/ejkl/; https://ronnie05.wordpress.com/2009/03/17/profiling-facebook-the-google-of-social-networking-part-iii/; https://ronnie05.wordpress.com/2009/03/06/profiling-facebook-the-google-of-social-networking-part-ii/

How will facebook become the most influential company on internet? https://ronnie05.wordpress.com/2009/09/07/erk/

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