Facebook Files for IPO, Bitch!

As expected, Menlo Park-based Social Network, Facebook, has filed its S-1 form ahead of an Initial Public Offering in April.

You can see the full form here, there are some interesting facts presented:

  • As of Dec 31st 2011, Facebook had 845 million Monthly Active Users (MAUs).
  • As of Dec 31st 2011, Facebook had 483 million Daily Active Users (DAUs).
  • As of Dec 31st 2011, Facebook had 425 million MAUs using Facebook mobile products.
  • Users generated an average fo 2.7 billion Likes and Comments per day.
  • Users upload 250 million photos per day.
  • Revenues were $3.7bn in 2011, $1.97bn in 2010 and $777m in 2009. Each MAU is worth $4.39 in revenue.
  • Net income was $668m in 2011, $372m in 2010 and $122m in 2009.
  • The business has $6.66bn in assets (and $1.4bn in liabilities).

 

But it’s not all unicorns and rainbows. The S-1 also summarised the greatest risks to the organisation:

  • “The loss of advertisers, or reduction in spending by advertisers with Facebook, could seriously harm our business”
  • “Competition presents an ongoing threat to the sucess of our business” – They couldn’t be talking about Google+ could they?
  • “Growth in use of Facebook through our mobile products, where we do not currently display ads” – that’s probably code for “expect ads on your mobile device soon!”
  • “The loss of Mark Zuckerberg, Sheryl K. Sandberg, or other key personnel could harm our business”. I’ve just sat through “True Grit” so my perspective is temporarily skewed, but does that sound a bit dark to anyone else?
  • “We anticipate that we will expend substantial funds in connection with tax withholding and remittance obligations related to the initial settlement of our restricted stock units (RSUs) approximately six months following our initial public offering” – Umm, so they have six months to sink or swim. If things go bad for them, we could be devoid of Facebook by Christmas? That’s a worrying thought. How am I going to find new LOLCATS?

 

Some other curiosities:

  • Zynga (Farmville, Cityville, etc) accounted for 12% of Facebook’s revenue!
  • The “Our History” page is presented as a Facebook Timeline (page 53).
  • There is a soon-to-be-famous “Letter from Mark Zuckerberg” on page 81 which starts: “Facebook was not originally created to be a company. It was built to accomplish a social mission — to make the world more open and connected.”
  • Mark Zuckerberg will exercise his option to purchase 120 million Class B shares and will convert an undisclosed number of those into Class A common stock when they’re sold off at the IPO. (Class B shares are worth 10 votes, class A are worth 1 vote).
  • It appears that the IPO will involve offering only 6.66% of Facebook to the public (117 million Class A shares vs. 1.76 billion Class B shares). Although I only got a B in GCSE Business Studies. Somebody with an MBA please feel free to correct me in the (ahem, Facebook) comments at the bottom of this article…
  • It cost Facebook $573,000 to register the S-1 form with the SEC.
  • There is no mention of Eduardo Saverin in the list of Owners.
  • There is no mention of the Winklevoss Twins anywhere in the filing.

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