Leaked: Facebook 2011 Revenue Upwards of $5B, $9.2B in 2012 [Sources] | Bostinnovation: Boston Start-ups, Innovation and News Blog
It has been widely speculated that Facebook will hold its IPO sometime in 2012. As we near the day when the giant social network files their S-1, revealing, at long last, the financials behind their operations, industry experts continue to speculate on exactly how much the company is worth and what they bring to the table for investors. After unearthing Facebook’s failed attempt to purchase Boston-based SCVNGR, which could have played a key role in establishing Facebook Deals, sources, who are former employees of Facebook, have said the company’s revenue for 2011 will be north of $5 billion and skyrocket to an estimated $9.2 billion in 2012.
These financials paint a very optimistic view of the near future for Facebook after Reuters yesterday published a report claiming Facebook’s revenue for the first half of 2011 doubled to $1.6 billion. The revenue number, if held constant for the remainder of the year, would put 2011 totals at $3.2 billion. However, if Facebook aims to reach a top line revenue number of $5+ billion, they would need to achieve revenue growth in excess of 100% in the second half of the year, which is a lofty goal.
We were told that Facebook predicts that they will break the 1 billion user mark by the August-September time frame in 2012. With those user projections in mind, our sources tell us the company is predicting that by 2015, they will have between $20-$25 in revenue per user with a 50% EBITDA margin. That puts the company’s annual revenue well north of $20 billion by 2015.
So how does Facebook stack up to Google when they were about to go public?
What could amount to a growing difference between Google and Facebook is the battle for display advertising as well as who can gain more traction from other revenue streams. In their second quarter financial statement, Google reported that their advertising revenue, which consists of Google Websites and Google Network Members’ Websites account for 97% of total revenue.
Our sources tell us that Facebook is split 90/10, ad revenue/ virtual currency, respectively. Facebook’s social gaming platform, home to popular online games and its anticipated music platform coming out in September, will play an increasingly important role in driving and continuing to diversify revenue.
Below is a chart that compares Google’s top line revenue to what our sources say Facebook is projecting year previous to an IPO, year of an IPO, and three years after an IPO.
Google Revenue Facebook Revenue
$1.46 billion (2003) ~$5.0 billion (2011)
$3.18 billion (2004) ~$9.2 billion (2012)
$16.5 billion (2007) ~$20 billion (2015)
The battle between Google and Facebook is about to ratchet up as we loom closer to Facebook’s IPO (with our first look into detailed financials). The battle for advertising is on, and from the estimates and projections we received, Facebook plans to achieve growth at a much faster rate than Google.
It has been widely speculated that Facebook will hold its IPO sometime in 2012. As we near the day when the giant social network files their S-1, revealing, at long last, the financials behind their operations, industry experts continue to speculate on exactly how much the company is worth and what they bring to the table for investors. After unearthing Facebook’s failed attempt to purchase Boston-based SCVNGR, which could have played a key role in establishing Facebook Deals, sources, who are former employees of Facebook, have said the company’s revenue for 2011 will be north of $5 billion and skyrocket to an estimated $9.2 billion in 2012.
These financials paint a very optimistic view of the near future for Facebook after Reuters yesterday published a report claiming Facebook’s revenue for the first half of 2011 doubled to $1.6 billion. The revenue number, if held constant for the remainder of the year, would put 2011 totals at $3.2 billion. However, if Facebook aims to reach a top line revenue number of $5+ billion, they would need to achieve revenue growth in excess of 100% in the second half of the year, which is a lofty goal.
We were told that Facebook predicts that they will break the 1 billion user mark by the August-September time frame in 2012. With those user projections in mind, our sources tell us the company is predicting that by 2015, they will have between $20-$25 in revenue per user with a 50% EBITDA margin. That puts the company’s annual revenue well north of $20 billion by 2015.
So how does Facebook stack up to Google when they were about to go public?
What could amount to a growing difference between Google and Facebook is the battle for display advertising as well as who can gain more traction from other revenue streams. In their second quarter financial statement, Google reported that their advertising revenue, which consists of Google Websites and Google Network Members’ Websites account for 97% of total revenue.
Our sources tell us that Facebook is split 90/10, ad revenue/ virtual currency, respectively. Facebook’s social gaming platform, home to popular online games and its anticipated music platform coming out in September, will play an increasingly important role in driving and continuing to diversify revenue.
Below is a chart that compares Google’s top line revenue to what our sources say Facebook is projecting year previous to an IPO, year of an IPO, and three years after an IPO.
Google Revenue Facebook Revenue
$1.46 billion (2003) ~$5.0 billion (2011)
$3.18 billion (2004) ~$9.2 billion (2012)
$16.5 billion (2007) ~$20 billion (2015)
The battle between Google and Facebook is about to ratchet up as we loom closer to Facebook’s IPO (with our first look into detailed financials). The battle for advertising is on, and from the estimates and projections we received, Facebook plans to achieve growth at a much faster rate than Google.
