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"Facebook IPOed without a business model." That's a fallacy. If you read Facebook's S-1, the business model is there. Their ad platform could have not been gre
by whoisjuan 6y ago
"Facebook IPOed without a business model."
That's a fallacy. If you read Facebook's S-1, the business model is there. Their ad platform could have not been great technologically speaking but it was a hardcore money machine that set FB in a clear trajectory to full operational profitability. Their user numbers where fantastic, so they had a perfect virtuous circle.
They had an accelerated revenue growth and their ad-depending revenue ratio was improving (as well as their cost of revenue)
Imagine going public with a 150% year over year growth. Like it or not, Facebook had a business model. A global business that could scale massively with a relatively small operational footprint. We know now at what cost and the moral implications, but the business was there.
No DoorDash or shit has the numbers to pull a "Facebook".
https://www.sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm#toc287954_11 https://www.sec.gov/Archives/edgar/data/1326801/000119312512...
- adventured 6y agoTo add to the absurdity of claiming Facebook IPO'd without a business model, here are the financials surrounding their IPO (which was May 2012): 2009 | $777m sales | $229m net income 2010 | $1.97b sales | $606m net income 2011 | $3.71b sales | $1b net income 2012 | $5.09b sales | $32m net income 2013 | $7.87b sales | $1.49b net income A billion in profit the year before IPO, supposedly without a business model. Uber should have considered not having a business model. Here is what FB's business model was in 2012: ring the advertising cash register all day and night.