Some have speculated that the real reason CFO Gideon Yu left Facebook is that the company’s finances are in a shambles. Based on conversations with several industry sources, we do not believe that this is why Gideon left. But, in any event, a source familiar with Facebook’s financial performance shared these details:
- Facebook’s revenue is growing 70% from where it was last year. (We believe last year’s revenue was about $365 million, so assuming some slowdown through the year, this would put 2009 revenue at $500 million-ish)
- The company has generated positive EBITDA (earnings before interest, taxes, depreciation, and amortization) since August of 2007.
- The company expects to start generating cash from operations (“Operationally cash-flow positive including cap-ex”) at some point during 2010.
The source would not comment on Facebook’s cash position, which is obviously critical. If Facebook will be burning cash for more than another year, it may need quite a stash to get to cash-flow breakeven.
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