Feeds

Facebook in 'solid net profit' shocker

2009 revenues topped $700m, says report

High performance access to file storage

Facebook pulled in a $700 to $800 million in revenue during 2009, according to a report citing two sources familiar with the situation.

Reuters reports that last year, the social networking site made actually made a "solid" net profit — somewhere in the tens of millions of dollars.

These figures are higher than expected for the still-private outfit. Last July, Facebook board member and Netscape founder Marc Andreessen told Reuters that the company expected revenues of around $500 million in 2009, and more recent press reports have put 2009 revenues between $500 million and $700 million.

"They are downplaying their performance," one Reuters source said of Facebook. "There's no upside in getting people's expectations high, it's always better to go low."

In September, Facebook said it had become cash-flow positive, but prior to that there had been much speculation over whether the company was bringing in the cash needed to maintain its massive back-end infrastructure.

According to a July 2008 analysis from Data Center Knowledge, Facebook was spending somewhere between $20m and $25m a year on data center space. The previous November, unnamed sources told TechCrunch that the company was spending "well over" a million a month on electricity alone and "likely" another $500,000 for bandwidth. And of course, spending was on the rise.

At the beginning of 2009, Facebook said it was serving 150 million users. By the end of the year, this figure had more than doubled to 350 million.

Housing photos for 350 million Web 2.0 obsessives isn't cheap, and many have questioned whether the site was as suited to advertising as the company claimed it to be — in 2008, Google told the world that advertising on social networking sites was "not monetizing" as well as expected — but it would appear that Facebook's advertising revenues are on the rise.

A source tells Reuters that Facebook's 2009 revenues were more than double the revenues of the previous year. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.