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Facebook is making enough cash to cover its operating expenses, tops 300 million user

They have reached the 300 Million mark.... 100 million of the profiles are mine FYI
:pimp:pimp:pimp:pimp:pimp

http://www.reuters.com/article/ousiv...58E7ZK20090916

Quote:

SAN FRANCISCO (Reuters) - Facebook is making enough money to cover its costs and now has 300 million users, the world's largest social networking site said on Tuesday, proving the Internet's newest star industry can be a viable business.

Facebook is now generating enough cash to cover its operating expenses, as well as the capital spending needed to maintain its fast-growing service.

Analysts said this shows the financial viability of Facebook, which has faced questions about its underlying business model, despite its popularity, and was a good sign for a potential initial public offering.

"It's certainly meaningful to show that this is absolutely the real deal," said Broadpoint Amtech analyst Ben Schachter. "They are executing. People are spending money on the site."

Since its creation in a Harvard dorm room five years ago, Facebook has emerged as one of the Internet's most popular destinations and is increasingly challenging the Web's established powerhouses like Yahoo Inc and Google Inc.

Facebook unveiled a revamped search engine last month and is currently testing an online payment system. Facebook users have tripled from about 100 million a year ago.

Facebook Chief Executive Mark Zuckerberg said in a blog post on the company site on Tuesday that Facebook reached its goal of being free cash flow positive in its most recently ended quarter. The company had previously projected reaching the target sometime in 2010.

"This is important to us because it sets Facebook up to be a strong independent service for the long term," said Zuckerberg in the blog post.

Facebook spokesperson Larry Yu said the free cash flow metric does not include any cash from private investment.

In May, Facebook announced a $200 million investment from Russian investment firm Digital Sky Technologies in a deal that valued the company's preferred shares at $10 billion.

DST valued Facebook's common shares at $6.5 billion in a subsequent deal to purchase shares from Facebook employees.

Facebook's becoming cash flow positive ahead of schedule provides another nugget of data to back up the lofty valuations, and according to one analyst, makes Facebook a more attractive candidate for a potential public offering.

"They can command higher confidence from investors now," said Collins Stewart analyst Sandeep Aggarwal, who noted that he believes Facebook could go public in the second half of 2010, or in 2011.

Zuckerberg said in May that any IPO is "a few years out."

Facebook did not provide any other financial details on Tuesday. The company has previously said its revenue was on track to grow 70 percent this year.

took em long enough to figure it out LOL

At least one social networking site has figured out how to make money.

I deleted my facebook, what a waste of time:321GFY

Quote:

Originally Posted by cherrylula (Post 16323945)

took em long enough to figure it out LOL

Let's hope their gross income isn't about to peak... ad rates can only go DOWN

that is quite an achievement

No surprise.. it definitely over took myspace

Now if only youtube could get their act together

Quote:

Originally Posted by gecko (Post 16324046)

No surprise.. it definitely over took myspace

myspace is like a dead town now, everyone seems to have moved to facebook.

Quote:

Originally Posted by pornjudge (Post 16324015)

I deleted my facebook, what a waste of time:321GFY

I just deleted mine, or rather "deactivated" it. You're definitely right about this.

It's amazing to me that a website could have 300 million members and just be barely making enough money to operate. Maybe I'm a dumbass about that kind of shit, but how does it happen?

Quote:

Originally Posted by CYF (Post 16324073)

myspace is like a dead town now, everyone seems to have moved to facebook.

I have not touched my My Space account in over a year moved all my social network time into FB

Quote:

Originally Posted by XPays (Post 16324032)

that is quite an achievement

Bubbieeeeeeeeeeeeee you are the one that showed me the wayyyyyyy offf FaceBook!!!!!

Tbh It has gotten me reunited with family and gotten me some ass from old chick friends I lost communication with

Where can they really go from here?

With giant growth and being the number one website on the internet they have managed to break even.

They should just sell it before something new and better comes out. He is being greedy at this point.

Facebook is awesome.

Reconnected with high school friends.

Quote:

Originally Posted by CyberAge-Dave (Post 16324425)

They should just sell it before something new and better comes out. He is being greedy at this point.

To think facebook will be old news in a couple of months

Mafia Wars... that is all.

Quote:

Originally Posted by CYF (Post 16324073)

myspace is like a dead town now, everyone seems to have moved to facebook.

I'm not sure. I don't get it. Now I'm not into either but I do have an account with both just to se WTF this "social networking" is all about but I find Facebook to be crappier than MySpace. Someone needs to explain why it's better because I don't see it.

Quote:

Originally Posted by EthnicLover (Post 16324440)

Facebook is awesome.

Reconnected with high school friends.

Easier on Myspace.

Quote:

Originally Posted by Juicy D. Links (Post 16324093)

Bubbieeeeeeeeeeeeee you are the one that showed me the wayyyyyyy offf FaceBook!!!!!

Tbh It has gotten me reunited with family and gotten me some ass from old chick friends I lost communication with

they prob flagged me for referring you- must be why i get a lot of axe bodywash and drakar ads

Facebook = fake friends.

I enjoy looking at other peeps pics but need for the entire world too know what's going on in my life...

Dang.. never knew they were raking that much dough

Yeah. And how many of those 300 million "users" are actually abandoned accounts?
The social networks like to overstate their stats by calling accounts "users".

Quote:

Originally Posted by XPays (Post 16324580)

they prob flagged me for referring you- must be why i get a lot of axe bodywash and drakar ads

:1orglaugh:1orglaugh:1orglaugh:1orglaugh:1orglaugh

Quote:

Originally Posted by okny (Post 16324597)

Facebook = fake friends.

I enjoy looking at other peeps ...

This is exactly what many people are doing today instead of watching porn. It's free and kinda social acceptable. Besides, they are REAL people, an approximation to their intimmacy. For many, Facebook voyeurism is enough (so far) to have a sexual fantasy with your best friend's wife or a female co-worker. Wait for people doing photoshops with these facebook pics once an easy app shows up (if there is not one already) and then *presto!* --> you got the next level ("customade" home porn).

Waiting to see them run out of datacenter money...

Quote:

Originally Posted by bronco67 (Post 16324080)

It's amazing to me that a website could have 300 million members and just be barely making enough money to operate. Maybe I'm a dumbass about that kind of shit, but how does it happen?

Huge operating costs.
Hardware: servers, bandwidth, cdn, huge infrastructure, etc
Staff: tech staff, reviewers/monitors, programmers, researchers, developers, PR, marketing, etc...

Quote:

Originally Posted by okny (Post 16324597)

Facebook = fake friends.

As opposed to myspace?

Quote:

Originally Posted by CyberAge-Dave (Post 16324425)

They should just sell it before something new and better comes out. He is being greedy at this point.

I agree... take the money and run.

Quote:

Originally Posted by Ice (Post 16328325)

I agree... take the money and run.

Ice , Perry Ellis sale this weelend

since i can't conceptualize their business model it cannot exist.