Facebook got a frenzied response to the paperwork for its initial public offering, an IPO that puts a value on the ubiquitous social network that will put it in the record books.
The S-1 filing with the Securities and Exchange Commission is filled with giant numbers. One of the most startling is to simply divide the IPO amount by the 845 million monthly active Facebook users there are in the world. That one calculation shows the value of personal data and targeted advertising, which of course is how Facebook makes so much money while staying free to use.
Documented numbers are just as impressive. Facebook reported revenue of $3.71 billion in 2011, up from $1.97 billion – an 88 percent increase year over year. Its net income was $1 billion, up from $606 million, a 65 percent increase.
Zynga accounts for 12 percent of Facebook’s revenue, which is generated by advertising and by Facebook’s 30 percent share of virtual goods sales.
Facebook shrugged off its revenue from mobile platforms as not being meaningful to its bottom line, however.
Facebook’s S-1 filing – http://tinyurl.com/78c4oab
Wall Street Journal – Facebook Files for IPO
The Telegraph – Facebook IPO: Letter from Mark Zuckerberg
The Atlantic – Facebook’s Most Serious Threats, According to Facebook
Christian Science Monitor – Facebook IPO: Are users really worth $125 each?
The Street – 5 Biggest Facebook IPO Surprises
Los Angeles Times – Small investors may have chance to get shares of Facebook IPO
Wired’s Epicenter blog – Facebook’s $5 Billion IPO: The Next Google? Or The Next Groupon?
Photo of Mark Zuckerberg by Flickr user deneyterrio, used under Creative Commons license
Chart showing who owns Facebook courtesy of LearnVest: