Bear with me. I’m going to go into little old grandma mode for a second here… I remember back when Facebook was just a little message board site and your college had to approved before you could even get in… Okay, I’m better now.
But seriously! Facebook has reached a pretty big milestone recently. In the second quarter (which ended in June), the company was cash flow positive for the first time. Now, this doesn’t mean they’re “profitable” per se, but it is a big step forward.
I have my eyes set on new media advertising & pr as my future career, so the longevity of these social media sites has been a big question on my mind and I am really glad to hear about this latest development. Just a few FYIs:
Facebook…
- has over 300 million users
- is valued at $10 billion
- has raised over $600 million since it was founded 5 years ago
The big question about these companies has been whether or not they will be able to develop a true revenue stream. The question still looms, but considering how far this site has come in such a short time, combined with the fact that they haven’t gone public yet, I’d say they’ve still got some time to figure that out. And the fact that they are now cash flow positive indicates that they are on the right track!
Something to Talk About 