Facebook announces profit and 300 million users
September 16, 2009
Facebook announced yesterday that it now has 300 million users around the globe and is making enough money to cover all of the company’s costs. It is generating enough cash to allow it to maintain growth and proves that its often questioned business model is working well.
Over the past five years since its inception in a Harvard University dorm it has become one of the most popular and most visited sites across the internet growing by around 200 million users in just one year. Facebook is now a serious contender to internet giants like Yahoo and Google.
Mark Zuckerberg, Facebook’s Chief Executive said that they had hoped to reach a position where the company was cash flow positive sometime next year and was delighted to be able to announce that they were already in that position. He went on to say that the announcement was important as it meant Facebook was now an independent service and would continue to be going into the future. Facebook also said that the free cash flow position was not inclusive of any money received from private investors. Digital Sky Technologies, a Russian investment firm earlier this year did a deal with Facebook worth $200 million.
Analysts now believe that the announcements mean that Facebook will become more attractive to other private investors and many believe the company will be in a position to go public sometime in the next couple of years.
It is estimated that Facebook gains on average 5 million new users every week.
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