According to insiders of Facebook, the explosive growth in the number of the users as well as the advertisers of the Internet social network has boosted the revenue to an amount of as much as $800 million during the previous year.
A solid net profit was also earned by the group which was in tens of millions of dollars as said by one of the sources. The growth which is seen in the profits and the revenue has underscored how Facebook is making lots of money from its service which is six years old. There are almost half a billion users of this web site which has made it the largest social network of the world.
The performance of the social network is likely to whet the appetites for which the investors are really keen on the issues of the public share, in spite of the insistence of the group that one IPO is not a priority of the near term. Facebook is a company which is based in California. This social network is booming and is moving up greatly. This was dreamed by Mark Zuckerberg and his friends in the dorm room of Harvard during the year 2004. Facebook is held privately and has also released some of the clips of the financial information of the company.
During the previous year, the results of the company were greatly high than the figures as were suggested by Facebook in the start as well as in the estimates of the analysts. During the month of July of previous year, Marc Andreessen, who is the director of Facebook, had said that the group is on the right track to cross $500 million for the year. During the month of September, it was said by Facebook that it had been generating quite enough cash in order to cover the operating expenses of the company as well as its capital spending needs.
The estimates that were in the media crossed the revenues of the previous year and were at $550 million to $700 million, but it has been said by two of the sources that it was an amount of $700 million to $800 million. According to one source, the performance is being downplayed by the company. From the values of the previous year the revenues were doubled. Facebook is considered to be on of the most popular destinations of the internet. This social networking web site is greatly challenging the longer established players of the Internet like Google and Yahoo for the online time and the ad dollars, also there has been a great balance set by the company which is set between the privacy protection as well as the promotion of the social sharing which is done by the users of the web site.
When the privacy of Facebook was attacked by the advocates of privacy then it was said by the group that it would be introducing some tools through which users would be able to limit the amount of the information which is visible to other users and that can be accessed publicly.