Facebook More Profitable Than We All Thought

Profit margin was an impressive 25% ... in 2009
By Evann Gastaldo,  Newser Staff
Posted Jan 6, 2011 10:53 AM CST
Facebook CEO Mark Zuckerberg smiles during an announcement in San Francisco, Monday, Nov. 15, 2010.   (AP Photo/Paul Sakuma)

(Newser) – Surprise, surprise: Facebook is actually “much more profitable than everyone thought,” writes Henry Blodget for Business Insider. Today’s Wall Street Journal piece (summary here) discloses that Facebook’s net income in 2009 was $200 million on $777 million in revenue. The revenue figure was known, approximately, but that income figure is new, Blodget writes. That implies a 25% net profit margin, which is quite high for a young company—“not quite in Google’s league,” he writes, “but it’s close.” Last year, the profit margin dropped to a “still plenty impressive” 20%.

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