Facebook Hits 300 Millions and Goes Cash-Flow Positive, All at Once!
Remember the days when MySpace was THE social networking site of choice, and Facebook trailed badly? Those days are long gone, and in fact, Facebook announced on Tuesday that they have topped 300 million users.
The announcement, much like what Apple has shown with similar stats for the App Store, shows that growth for Facebook is growing at a rapidly increasing rate. Facebook grew from 200 million users to 300 million in just over 5 months. It took 8 months to go from 100 million from 200 million. The initial leap to 100 million took years.
Additionally, Facebook said they are already cash-flow positive. In April they told analysts and the press that know that the company expected to be "operationally cash-flow positive including cap-ex" at some point during 2010. It's not the same as being truly profitable, but it's a positive note.
Cash flow is what it sounds, how cash flows in and out of your business. You can make a profit, but still have negative cash flow because of the time it might take for someone to pay you. Similarly, you can have positive cash flow but still be in the red.
In terms of profitability, Facebook was silent, but CEO Mark Zuckerberg said the following about being cash-flow positive.
The announcement, much like what Apple has shown with similar stats for the App Store, shows that growth for Facebook is growing at a rapidly increasing rate. Facebook grew from 200 million users to 300 million in just over 5 months. It took 8 months to go from 100 million from 200 million. The initial leap to 100 million took years.
Additionally, Facebook said they are already cash-flow positive. In April they told analysts and the press that know that the company expected to be "operationally cash-flow positive including cap-ex" at some point during 2010. It's not the same as being truly profitable, but it's a positive note.
Cash flow is what it sounds, how cash flows in and out of your business. You can make a profit, but still have negative cash flow because of the time it might take for someone to pay you. Similarly, you can have positive cash flow but still be in the red.
In terms of profitability, Facebook was silent, but CEO Mark Zuckerberg said the following about being cash-flow positive.
"This is important to us because it sets Facebook up to be a strong independent service for the long term. Over time, Facebook will continue to be as strong as all of the connections you make."
