Report: Facebook made $355 million Net in 2010

January 7, 2011

A report that found its way to Reuters this week reveals some interesting financial numbers from privately owned Facebook. The document, which was meant for customers of investment firm Goldman Sachs, says that Facebook made $1.2 billion USD in the first nine months in 2010. The company also raked in $355 million in net income.

The source that leaked the document to Reuters told the new organization the "the financial statements were not audited and offered little detail about how Facebook generates it revenue".

"It just shows you that these business can generate 30 percent to 40 percent, potentially, operating margins," said Ryan Jacob of the Jacob Internet Fund, speaking to Reuters. "They probably did at least $500 million in net income in 2010."

The 101-page memorandum was meant for investors, who Goldman Sachs wants to raise an estimated $1.5 billion from for a future investment in Facebook. The company plans to dump an estimated $450 million of its own funds into Facebook. Goldman Sachs valued Facebook at $50 billion this week.

Source: Reuters by way of GI.biz

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Re: Report: Facebook made $355 million Net in 2010

Submitted by Neeneko on Mon, 01/10/2011 - 10:44.

Yeah..

Everything I hear about this IPO leads me to think Goldman Saches is trying to scam investors. The markets are bad enough right now that a lot of risk-adverse investors (i.e. the ones who got us into this mess) are scrambling for something that looks like a sure thing.. facebook is full of buzz so they figure that will be good to invest in. Goldman Saches pumps them up, takes a huge commission, and then probably helps the current facebook owners take that IPO money and use it to invest in blue chip companies and cash out of facebook before it starts to slide.

It is the same basic pattern AOL and MySpace followed... right before they started to decline they had an overvalued IPO and instead of investing the money in their company they turned around and used it to build solid investments in older companies.. so to me this is a sign that the facebook executives believe they have peaked and need to look elsewhere for growth.

Re: Report: Facebook made $355 million Net in 2010

Submitted by SeanB on Mon, 01/10/2011 - 10:25.

"...says that Facebook made $1.2 billion USD in the first nine months in 2001."

was facebook even around in 2001?

Re: Report: Facebook made $355 million Net in 2010

Submitted by Neeneko on Mon, 01/10/2011 - 10:40.

Nope, they went live in 2004.

The original Reuters piece said

"Facebook earned $355 million in net income in the first nine months of 2010, according to documents distributed by Goldman Sachs, a fraction of the online social network's $50 billion valuation."

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Andrew Eisen: Well, the Xbox One reveal certainly had an interesting affect on the big 3's stock prices. https://twitter.com/AndrewEisen/status/33705126448977100805/21/2013 - 10:45pm

PHX Corp: http://kotaku.com/so-the-xbox-one-reveal-screwed-up-a-lot-of-peoples-kin-509179256 So The Xbox One Reveal Screwed With Some People's Kinects05/21/2013 - 10:36pm

Zen: On a funny side note...both of my boys have already voted NOT to get the Xbox One as soon as they found out Minecraft won't transfer lol. Some people have priorities damnit! ;)05/21/2013 - 9:27pm

Andrew Eisen: Here's the full quote on EA making Wii U games according to Neogaf: http://www.neogaf.com/forum/showthread.php?t=56112105/21/2013 - 8:19pm

Andrew Eisen: Xbox One may not be always on but that doesn't mean you can use it without an internet connection. http://kotaku.com/xbox-one-does-require-internet-connection-cant-play-o-50916410905/21/2013 - 7:39pm

Andrew Eisen: Polygon says EA's CFO says it is developing games for Wii U but doesn't provide that quote. http://www.polygon.com/2013/5/21/4351844/ea-developing-wii-u-games05/21/2013 - 7:11pm

Andrew Eisen: Well, I was right. Both Sony and Microsoft's consoles will be out by the year's end and both will be significantly more powerful than the current gen.05/21/2013 - 5:06pm

james_fudge: thnx05/21/2013 - 4:47pm

Zen: Just to let ya know...you called it the "Xbox 260" in the backwards compatibility article lol.05/21/2013 - 4:26pm

Zen: @PHX Awesome, I will hit those up after class tonight. Going back to college finally! :) My kids have had a blast telling ME to do my homework now lol.05/21/2013 - 4:19pm

PHX Corp: @Zen I sent you a friend request on both PSN and XBL, just a heads up05/21/2013 - 4:16pm

Zen: I noticed it with the football players when EA showed off Madden as well.05/21/2013 - 4:11pm

Zen: Is it just me or is call of duty hitting the "uncanny valley" with their nicely modeled faces and dead looking eyes? I found it distracting and seemed actually "less" real to me lol.05/21/2013 - 4:10pm

james_fudge: it sounds like if you have an HD reciever you'll be able to use it with a pass-through cable... not 100 percent sure yet05/21/2013 - 2:41pm

james_fudge: happening now http://majornelson.com/2013/05/21/xbox-one-architecture-panel/05/21/2013 - 2:20pm

E. Zachary Knight: Some reading material for Microsoft on its used games blocks. That will hurt the console more than helping. http://ezknight.net/?page_id=20505/21/2013 - 2:18pm

james_fudge: yeah good luck with over the air TV05/21/2013 - 2:12pm

E. Zachary Knight: But what if I want to only watch over the air tv? I don't subscribe to pay tv. I never will. If that is a requirement, then MS wasted 45 minutes telling me how great TV will be.05/21/2013 - 2:08pm

james_fudge: EZK it will depend on your provider, just like HBO Go i'd imagine.05/21/2013 - 2:05pm

PHX Corp: @IanC there's also a chance that those titles might be Xbox one exclusive, but it's too early to tell afaik05/21/2013 - 2:03pm

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