Facebook Revenue Stronger Than Expected
By: Mike Sachoff
Facebook is bringing in revenue at a higher rate than expected, and is set to attract so many investors this year that it will likely have to release financial information similar to a publicly traded company by April 2012, according to a document from Goldman Sachs.
Facebook, the top social network in the world, earned $355 million in net income in the first nine months of 2010 on revenue of $1.2 billion, according to documents Goldman Sachs gave its clients.
According to Reuters, Goldman delivered copies of the 101-page private placement memorandum for a $1.5 billion Facebook offering to its wealthy customers. The document offers detailed financial information about Facebook, which Goldman valued at $50 billion in a separate, $450 million funding.
The valuation is high, but in line with the company's financial performance and growth that it implies, according to Ryan Jacob , of the Jacob Internet Fund.
It just shows you that these businesses can generate 30 percent to 40 percent, potentially, operating margins," he said. "They probably did at least $500 million in net income in 2010."
This year you could make the case that they're probably going to be north of $800 million and probably close to a billion," said Jacob.
About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.
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