Stay on Top of Enterprise Technology Trends
Get updates impacting your industry from our GigaOm Research Community
It took the whole day, but Facebook finally — as many expected — filed its S-1 with the Securities Exchange Commission for its long-awaited IPO. While guesstimates for how much Facebook would try to raise ranged from $5 billion to $10 billion, in the end, it looks like it is the lower of that range: $5 billion.
There’s no firm idea yet on what that $5 billion might mean for a valuation of the company. But here are some quick early numbers: Facebook made $3.71 billion in revenue in 2011, almost twice what it did in 2010. Of that $3.71 billion, $1 billion was net income.
It has 845 million active registered users with 483 million of them termed “daily active users”.
Advertising accounted for 85 percent of its revenue last year. Zynga accounted for 12 percent of its revenues overall and over 80 percent of its payment revenues.
And to confirm the rumors we heard about which banks are involved: Morgan Stanley is leading the IPO filing with J.P. Morgan, Goldman Sachs, BofA Merrill Lynch, Barclays Capital, and Allen & Co also participating.
Several folks are in line for a big gain on their investments. Facebook listed Accel Partners, DST Global Limited, Goldman Sachs, and T. Rowe Price as its major institutional shareholders. Dustin Moskovitz, a Facebook co-founder and CEO of startup Asana, is also a major stockholder listed in Facebook’s statement. Notable among the individual investors is Peter Thiel, who co-founded PayPal and will serve on Facebook’s board of directors.
It’s not just the IPO price, bankers and valuation that had people busy guessing. People have been speculating about other aspects of this IPO, including how much of a fee the banks will get on the deal (the range we’ve seen: between one percent and seven percent).
Now, with the IPO finally out, people will begin to pore over the numbers to figure out all sorts of things about Facebook that have not been completely clear while it was still in startup mode: What are its margins? What does it expect its growth rate to be? What are the comparative sizes of different business areas like advertising versus Facebook credits? What’s the geographical spread of its business?
However you cut it, the company has been a ground-breaker in the online world. You can argue about whether or not Facebook introduced the concept of social networking, but it has certainly run away with it, and now has 845 million users. And counting.
The question today is whether it will be able to convert that into a sustainable financial juggernaut, too?
More S-1 detail and number crunching here.