Facebook Files S-1 for $5 Billion IPO - Know the risks (revealing stats & revenue)

Facebook’s S-1: 845 Million Users Every Month, More Than Half Daily and Nearly Half Mobile | TechCrunch

Brian Solis is updating as this plays out with deeper analysis and links

Just a few moments ago, Facebook officially filed an S-1  for an initial public offering seeking to raise $5 billion. Here are a few key findings…

- 845 million monthly active users, year over year growth of 39%

- 483 million daily active users as of December, year over year growth of 48%

- 425 million monthly mobile users

- 100 billion friend connections as of December 31, 2011

- 2.7 billion Likes and comments per day during the last quarter of 2011

- $1 billion in profits in 2011

- $3.7 billion in revenues in 2011, soaring 88% between 2010 – 2011

- Profits grew 65% from $606 million in 2010

- Zynga makes up 12% of overall Facebook revenue

More data available at

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UPDATE 1: The Hacker Way

Really appreciate the culture of Facebook as mentioned in the S-1 under the heading “The Hacker Way.” Here’s an excerpt:

The Hacker Way

As part of building a strong company, we work hard at making Facebook the best place for great people to have a big impact on the world and learn from other great people. We have cultivated a unique culture and management approach that we call the Hacker Way.

The word “hacker” has an unfairly negative connotation from being portrayed in the media as people who break into computers. In reality, hacking just means building something quickly or testing the boundaries of what can be done. Like most things, it can be used for good or bad, but the vast majority of hackers I’ve met tend to be idealistic people who want to have a positive impact on the world.

The Hacker Way is an approach to building that involves continuous improvement and iteration. Hackers believe that something can always be better, and that nothing is ever complete. They just have to go fix it — often in the face of people who say it’s impossible or are content with the status quo.

Hackers try to build the best services over the long term by quickly releasing and learning from smaller iterations rather than trying to get everything right all at once. To support this, we have built a testing framework that at any given time can try out thousands of versions of Facebook. We have the words “Done is better than perfect” painted on our walls to remind ourselves to always keep shipping.

Hacking is also an inherently hands-on and active discipline. Instead of debating for days whether a new idea is possible or what the best way to build something is, hackers would rather just prototype something and see what works. There’s a hacker mantra that you’ll hear a lot around Facebook offices: “Code wins arguments.”

Hacker culture is also extremely open and meritocratic. Hackers believe that the best idea and implementation should always win — not the person who is best at lobbying for an idea or the person who manages the most people.

UPDATE 2: Risks

As a matter of disclosure, Facebook must release risks to caution investors against buying blindly. Here is the full list as pulled from the S-1. I share it here with you to learn from Facebook’s diligence in constant innovation or as they say “shipping.” It’s a healthy form of inspiration to always compete for the moment and for relevance over time.

1. users increasingly engage with competing products;

2. we fail to introduce new and improved products or if we introduce new products or services that are not favorably received;

3. 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;

4. 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;

5. 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;

6. we are unable to manage and prioritize information to ensure users are presented with content that is interesting, useful, and relevant to them;

7. there are adverse changes in our products that are mandated by legislation, regulatory authorities, or litigation, including settlements or consent decrees;

8. technical or other problems prevent us from delivering our products in a rapid and reliable manner or otherwise affect the user experience;

9. 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;

10. we fail to provide adequate customer service to users, developers, or advertisers;

11. we, our Platform developers, or other companies in our industry are the subject of adverse media reports or other negative publicity; or

12. 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.