Facebook is Profitable

FB is now profitable. I find this hard to believe. I don’t think that they are able to charge very much for what advertising they currently run, and the service is free to users.

Based on the current “Reset” (Steve Ballmer) that online advertising is undergoing, I think that charging for their service (or parts thereof) could be a great longterm growth model. From what I observe, people are completely and totally addicted to FB.

From this article in Ad Age:

“Key to Facebook’s profitability has been its ability to keep its headcount low. Mr. Zuckerberg points out in his blog post the company employs one engineer for every million users. The company has only 1,000 employees serving a user base that is quickly surpassing the population of the United States.”

We will see how this goes.


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