The most interesting data points in Facebook’s IPO

February 1, 2012

Here are some of the most interesting bits of information in Facebook’s IPO filing:

  • Zynga accounted for approximately 12% of Facebook revenue
  • Net income rose 65 percent to $1 billion in 2011, off revenue of $3.71 billion
  • Sheryl Sandberg’s 2011 Facebook compensation: $30.9 million
  • Facebook CFO David Ebersman’s 2011 total compensation was $18.65 million
  • Advertising accounted for 85% of Facebook revenue in 2011
  • Mark Zuckerberg’s compensation in 2011 was $1.49 million
  • 845 million active users on Facebook
  • Total capitalization as of Dec 31, 2011: $4,899 million
  • Full time employees increased from 2,127 as of December 31, 2010 to 3,200 as of December 31, 2011
  • Mark Zuckerberg holds stock with total voting power before IPO of 56.9%
  • Facebook major ownership: Mark Zuckerberg : 28%, Accel (invested in 2005) :11.4% Co-founder Dustin Moskovitz 7.6% DST: 5.4% Peter Thiel: 2.5%
  • Mark’s letter in the middle of the IPO filing
  • Mark Zuckerberg’s annual salary will fall to one dollar starting 1/1/2013
  • Facebook had 483 million daily active users on average in December 2011, an increase of 48% as compared to 327 million in December 2010
  • 425 million monthly active users of Facebook’s mobile products in December 2011
  • An average of 2.7 billion likes and comments per day were generated by users during the three months ending December 31, 2011
  • Facebook cites Google+, Cyworld in Korea, Mixi in Japan, Orkut in Brazil and India, vKontakte in Russia as competitors
  • Also cited by Facebook as competitors: Renren, Sina, and Tencent if they “are able to access the market in China in the future”

Peter Lauria points out that 85% of revenue dependent on advertising makes it more reliant than CBS, the most ad-dependent old-media firm.

Another interesting section addresses risks:

Any number of factors could potentially negatively affect user retention, growth, and engagement, including if:

  • users increasingly engage with competing products;
  • we fail to introduce new and improved products or if we introduce new products or services that are not favorably received;
  • we are unable to successfully balance our efforts to provide a compelling user experience with the decisions we make with respect to the frequency, prominence, and size of ads and other commercial content that we display;
  • we are unable to continue to develop products for mobile devices that users find engaging, that work with a variety of mobile operating systems and networks, and that achieve a high level of market acceptance;
  • there are changes in user sentiment about the quality or usefulness of our products or concerns related to privacy and sharing, safety, security, or other factors;
  • we are unable to manage and prioritize information to ensure users are presented with content that is interesting, useful, and relevant to them;
  • there are adverse changes in our products that are mandated by legislation, regulatory authorities, or litigation, including settlements or consent decrees;
  • technical or other problems prevent us from delivering our products in a rapid and reliable manner or otherwise affect the user experience;
  • we adopt policies or procedures related to areas such as sharing or user data that are perceived negatively by our users or the general public;
  • we fail to provide adequate customer service to users, developers, or advertisers;
  • we, our Platform developers, or other companies in our industry are the subject of adverse media reports or other negative publicity; or our current or future products, such as the Facebook Platform, reduce user activity on Facebook by making it easier for our users to interact and share on third-party websites.

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I think you can’t go wrong buy this stock unless the security becomes such that people feel that their accounts are linked to government that are tracking them…then people will drop off like flies…will be a huge boat anchor then.

Posted by russelld1254 | Report as abusive

These are some huge numbers! But still Facebook will be a highly risky investment, I mean that for the average joe. Facebook will still make a lot of money, but for the special few 😉

Posted by Vectorash | Report as abusive