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Highlights of Facebook’s $ 5 Billion IPO Filing

By on February 2, 2012

Facebook filed for its IPO yesterday with the Securities and Exchange Commission (SEC) in Washington DC.

Anthony De Rosa has put together a compilation of the most interesting points. Enjoy:

  • Zynga accounted for approximately 12% of Facebook revenue
  • Net income rose 65 percent to $1 billion in 2011, off revenue of $3.71 billion
  • Sheryl Sandberg’s 2011 Facebook compensation: $30.9 million
  • Facebook CFO David Ebersman’s 2011 total compensation was $18.65 million
  • Advertising accounted for 85% of Facebook revenue in 2011
  • Mark Zuckerberg’s compensation in 2011 was $1.49 million
  • 845 million active users on Facebook
  • Total capitalization as of Dec 31, 2011: $4,899 million
  • Full time employees increased from 2,127 as of December 31, 2010 to 3,200 as of December 31, 2011
  • Mark Zuckerberg holds stock with total voting power before IPO of 56.9%
  • Facebook major ownership: Mark Zuckerberg : 28%, Accel (invested in 2005) :11.4% Co-founder Dustin Moskovitz 7.6% DST: 5.4% Peter Thiel: 2.5%
  • Mark’s letter in the middle of the IPO filing
  • Mark Zuckerberg’s annual salary will fall to one dollar starting 1/1/2013
  • Facebook had 483 million daily active users on average in December 2011, an increase of 48% as compared to 327 million in December 2010
  • 425 million monthly active users of Facebook’s mobile products in December 2011
  • An average of 2.7 billion likes and comments per day were generated by users during the three months ending December 31, 2011
  • Facebook cites Google+, Cyworld in Korea, Mixi in Japan, Orkut in Brazil and India, vKontakte in Russia as competitors
  • Also cited by Facebook as competitors: Renren, Sina, and Tencent if they “are able to access the market in China in the future”

Peter Lauria points out that 85% of revenue dependent on advertising makes it more reliant than CBS, the most ad-dependent old-media firm.

Another interesting section addresses risks:

Any number of factors could potentially negatively affect user retention, growth, and engagement, including if:

  • users increasingly engage with competing products;
  • we fail to introduce new and improved products or if we introduce new products or services that are not favorably received;
  • 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;
  • 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;
  • 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;
  • we are unable to manage and prioritize information to ensure users are presented with content that is interesting, useful, and relevant to them;
  • there are adverse changes in our products that are mandated by legislation, regulatory authorities, or litigation, including settlements or consent decrees;
  • technical or other problems prevent us from delivering our products in a rapid and reliable manner or otherwise affect the user experience;
  • 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;
  • we fail to provide adequate customer service to users, developers, or advertisers;
  • we, our Platform developers, or other companies in our industry are the subject of adverse media reports or other negative publicity; or 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.

One Comment

  1. Anonymous

    February 2, 2012 at 11:19 am

    FROM INTELLIGENCE SOURCE .
    THERE IS SHAKE UP IN NNPC , 38 NEW PROMOTED WHILE 28 RELOCATED .
    28 RELOCATED — THIEVES. THEY OUGHT TO BE JAILED .
    GMD — OUGHT TO RESIGN. NOT ENOUGH FOR NIGERIANS .
    THEY HAVE DO ALOT OF MESS WHICH HAVE AFFECTED THE LIFES OF NIGERIAN BADLY .
    THEY NEED TO BE SACKED WITHOUT COMPENSATIONS