Facebook doesn't have to answer to anyone except its investors and a few of its shareholders, including Mark Zuckerberg, its CEO. Now will he have to answer to anyone else after what he said at a meeting held yesterday?
23-year old Zuckerberg spoke to a "large audience" about financial details of the burgeoning social networking site which "horrified" some of its employees, according to Kara Swisher (opens in new tab) from All Things Digital.
So what did he revealed : Facebook revenues for 2007 should hover around be $150 million, that's 1 percent of its expected Market capitalisation of $15 billion, Microsoft's revenues for 2007 represent 16 percent of its market capitalisation.
Zuckerberg though said that revenues for 2008 would double to $300 million at least; he also said that the company would invest massively in hardware (servers, switches, network gear etc) - up to $200 million, that's more than its 2007 revenues.
Facebook has 63 million active users and more than 65 billion page views per month; using figures given by Lookery (opens in new tab), it looks like unless Facebook can pull out a smart trick, it will be difficult for the company to bring in $300 billion.
Facebook's CPM (million) is a lowly $150 which means that Facebook can bring only around $120 million in page views revenue annually; it would have to double or even treble in size to reach its goal.
Zuckerberg also intends to employ more people, adding 550 employees to the payroll, expecting EBITDA for 2008 to reach $50 million.