4 ms·
when dhh says "make $X", he means profit, not revenue.
by pchristensen 16y ago
when dhh says "make $X", he means profit, not revenue.
- bl4k 16y agoI can't edit above so I will add it here: * '09 spent $400 on $700M of revenue ($300M profit) * profitable since Q2 of 09 * one of the only social networks to ever reach profitability * 55% of US retailers present on Facebook * 20% of global social network ad revenues * 550,000 approved apps, 1M developers * 20% of users have logged into another site using connect * Zynga revenue is over $40M a month. Up to $10M of that goes to Facebook for advertising, while Facebook then take 30% of what Zynga make through Facebook revenue. So Zynga first pay Facebook to get the users, then pay Facebook again when they make money from those users. Great model. sources: * http://www.sharespost.com/research_report?filename=facebook-june-2010-SharesPost-Report.pdf http://www.sharespost.com/research_report?filename=facebook-... * http://www.sharespost.com/research_report?filename=100702_GSVP_Facebook-v4.pdf http://www.sharespost.com/research_report?filename=100702_GS... (both reports source from SEC filings and other sources)
- pchristensen 16y agoThen his estimate wasn't too far off, although his error bars were in the wrong direction. Facebook is making 9-figure profit, not 10. FWIW, I believe that $50-100B is where Facebook's market cap will plateau. More than Amazon, about half of Google. I'm not at all in agreement with dhh on this one.