Facebook’s revenue soared to $1.6 billion in the first half of 2011, as the world’s largest social network continues to expand ahead of its widely anticipated IPO.
The social networking giant posted net income of $500 million in the first half of 2011, according to “a source with knowledge of its financials.” Facebook has taken its user base to a whopping 750 million and has established itself as one of the biggest players in the display advertising world, TAKING one-third of all impressions served in the U.S. (more than Yahoo, Microsoft, Google, and AOL together).It’s your mid-year Facebook revenue update; When we last spoke DST and Goldman Sachs’ investment in Facebook has brought to light some interesting revenue numbers, namely that Facebook had a net income of $200 million in 2009, on a revenue of $777 million. While the Goldman documents did not give numbers for all of 2010, analysts and reports held that Facebook’s income for the year could have been as high as $2 billion, with a net income of $600 million.
The company founded by Mark Zuckerberg out of his dorm room in 2004 has grown into one of the internet’s most formidable firms. While its finances aren’t publicly known, information has occasionally made its way out.
Earlier this year, Goldman Sachs prepared a private share offering of Facebook to its clients, distributing some of the social network’s financial information. Those documents suggest Facebook earned $433 million on $1.2 billion in revenues during the first 9 months of 2010. While quarterly figures weren’t released, assuming Facebook’s sales were equal in every quarter, the social network made 800 million in the first two quarters of 2010.
Goldman itself invested in Facebook, giving it an unofficial Wall Street-stamp of approval and a valuation of about $50 billion. Shares in Facebook trade on secondary markets where the valuation has been pushed above $80 billion. Markets expect Facebook to go public in the short-term, as its ever-rising number of shareholders puts pressure on regulators to ask management to release more financial information. The SEC requires any company with more than 500 shareholders to disclose its finances.
If the recent report is true, Facebook is proving that it is increasingly better at monetizing the opportunities it has made for itself, as Zuckerberg prepares his company to dispute the Google’s claim to the Internet’s number one spot.
According to those people ever familiar with the matter, Facebook plans on IPOing in 2012. Google, which currently has a market cap of $172.43 billion, reported $1.5 billion in revenue and $106 million in net income 2003, the year before its IPO.