Facebook says it passed key financial milestone

Sep 15, 2009
Facebook logo

(AP) -- 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 wrote that the company became "cash-flow positive" during the second quarter, which ended in June.

"This is important to us because it sets 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.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Austria court throws out Facebook privacy class action suit

Related Stories

Facebook's $200M investment values co. at $10B

May 26, 2009

(AP) -- Facebook is getting a $200 million investment from a Russian Internet investor that values the social networking company at $10 billion even though it has yet to turn a profit.

Facebook claims 250 million users

Jul 16, 2009

Facebook founder Mark Zuckerberg announced the number of people using the online social networking service has climbed to 250 million.

Recommended for you

New approach to online compatibility

Jun 30, 2015

Many of the online social networks match users with each other based on common keywords and assumed shared interests based on their activity. A new approach that could help users find new friends and contacts with a greater ...

Most internet anonymity software leaks users' details

Jun 29, 2015

Virtual Private Networks (VPNs) are legal and increasingly popular for individuals wanting to circumvent censorship, avoid mass surveillance or access geographically limited services like Netflix and BBC ...

WikiLeaks says NSA spied on French business

Jun 29, 2015

WikiLeaks has released documents that it says show that the U.S. National Security Agency eavesdropped on France's top finance officials and high-stakes French export bids over a decade in what the group called targeted economic ...

Google gets extended deadline to answer EU case

Jun 29, 2015

Brussels has given Google an extension until mid-August to answer an anti-trust case alleging that the tech giant abuses its search engine's market dominance, a company spokesman said Monday.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.