Feeds

Facebook in 'solid net profit' shocker

2009 revenues topped $700m, says report

Boost IT visibility and business value

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. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.