Facebook: 300 Million Strong, Cash Flow Positive

SAN FRANCISCO — Facebook Inc. said Tuesday it achieved an important financial milestone, bringing in more money than it spent in the last quarter. The social networking site previously had said it didn't expect to achieve that goal until next year – even though the company already has been valued in the billions.

In a blog post on Facebook's Web site, founder and CEO Mark Zuckerberg wrote that the company became "cash-flow positive" during the second quarter, which ended in June.

"This is important to us because it sets Facebook up to be a strong independent service for the long term," he wrote.

This does not mean that Facebook necessarily is profitable by the measurements that most companies use, though. Cash remaining after expenses could be swallowed by other costs like taxes, debt payments or accounting charges.

Zuckerberg did not indicate whether Facebook is now moving closer to filing for an initial public offering.

Facebook has raised more than $600 million from investors since it was founded five years ago. Its most recent infusion came this spring from Russian Internet investor Digital Sky Technologies, which invested $200 million in exchange for a 2 percent stake in the company, valuing Facebook at $10 billion.

Zuckerberg also said that Palo Alto, Calif.-based Facebook now has 300 million users worldwide.

Comments

[jason10006]

Yeah, "in the black" does NOT mean "cash flow positive", it means "profitable." And they would have said "profitable" or "positive net income" or similar if they were "in the black". They are still in the red.

[berkamore]

Hmmm.............

Cash flow positive means that you took in more cash flow than you spent.

Doesn't really mean that you made a profit. You may be cash flow positive and have a boatload of noncash expenses that really mess up the bottom line.

Secondly, being cash flow positive may not necessarily be good news. Maybe he should be investing to build up the company and thus use more cash. Cash flow positive may mean that he is milking whatever business FB has right now instead of going after new markets.

So until we see FB's financials, we can't even begin to understand what the kid is talking about.

Then again, he is a kid and what he's done is very impressive so congratulations.

[toocoldout]

That kid is a genius. Richer than all of here combined.

[sibster]

Amazing, Way ahead of all the other social networking websites.

[APVEGAS]

He must be a racist because he used white lettering for his logo...

[BlueOnBlue]

I'm one of the 300 million, but like 250 million others who were talked into, I'm there now only because I haven't found the "off" switch.

[SGMD1]

Facebook IPO...DO WANT

[blacktino]

Wow, it's been awhile since anyone has spoken about MySpace. They completely fell off the map. Must've been all of those hackers!

[sarahtonin]

MySpace is a cesspool of spam and banner ads with an interface that looks like it's straight out of 1998.

[cdemackio]

Myspace is for teenage girls.

[GPC]

new internet pick up line

Make me your friend so you can sit on my facebook..

[mrmonoxide]

2,999,999 as of today

[instagladiator]

Whatever.....

[Djeric Lemessie 1]

.HMMM

[JoeAmerican]

If you could just get $1 from every user...

[lazercat2008]

My google stock is looking pretty good about now.

[StylesBitchly]

He even looks like Bill Gates!