Internet Financial News
Newsletter SampleFREE IFN Newsletter



Facebook Revenue Stronger Than Expected

By: Mike Sachoff
2011-01-07

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.


Titan Quest Forum Nintendo Wii Graphics Forum
Halo 3 Forum Mac Software

Latest News