4. FACEBOOK | 1.1 INTRODUCTION 4
• Inception – January 2004
• Invented By – Mark Zuckerberg, Eduardo Saverin, Dustin
Moskovitz & Chris Hughes
• Started as thefacebook.com, changed to facebook.com in 2005
6. FACEBOOK | 2.1 HISTORY 6
Date: October 28, 2003
Place: Harvard University
Event:
• Facemash, the Facebook‟s predecessor
• Designed by Mark Zuckerberg, and three of his classmates – Andrew
McCollum, Chris Hughes and Dustin Moskovitz
• The website allowed Harvard Student to compare two student pictures side-
by-side and let them choose who was “hot” and who was “not”
• This created a rage amongst Harvard students overnight and overloaded the
Harvard IT system
7. FACEBOOK | 2.2 HISTORY 7
Date: January, 2004
Place: Harvard University
Event:
• Mark Zuckerberg began writing the code for a new website, known as 'the
facebook„
• When Mark finished the site, he told a couple of friends ... then one of his
roommates suggested putting it on the Kirkland House (Dorm name) online
mailing list
• Within the first month, more than half the undergraduate population at
Harvard was registered on the service
• In March 2004, Facebook expanded to Stanford, Columbia, and Yale. Later
opened to all Ivy League and Boston-area schools.
8. FACEBOOK | 2.3 HISTORY 8
Date: June 2004
Place: California
Event:
• Facebook was incorporated in the summer of 2004, and the
entrepreneur Sean Parker, who had been informally advising
Zuckerberg, became the company's president
• Facebook moved its base of operations to Palo Alto, California
• The company dropped „The‟ from its name after purchasing the domain
name facebook.com
9. FACEBOOK | 2.4 HISTORY 9
Date: 2005- 2008
Place: California
Event:
• Facebook expanded to 21 Universities in the United Kingdom
• Facebook later expanded membership eligibility to employees of
several companies, including Apple Inc. and Microsoft
• On December 11, 2005, universities in Australia and New Zealand were
added to the Facebook network, bringing its size to 2,000+ colleges and
25,000 + high schools throughout the United States, Canada, Mexico,
the United Kingdom, Australia, New Zealand, and Ireland
• Facebook was then opened on September 26, 2006 to everyone ages
13 and older with a valid e-mail address
• In October 2008, Facebook announced that it would set up its
international headquarters in Dublin, Ireland
10. FACEBOOK | 2.5 HISTORY 10
Date: 2009-2011
Place: California
Event:
• In 2010, Facebook began to invite users to become beta testers after
passing a question-and-answer-based selection process
• A set of Facebook Engineering Puzzles where users would solve
computational problems which gave them an opportunity to be hired by
Facebook
• As of February 2011, Facebook had become the largest online photo
host, having100 billion photos posted by summer 2011
• As of October 2011, over 350 million users accessed Facebook through
their mobile phones, accounting for 33% of all Facebook traffic
12. FACEBOOK | 3.1 CURRENT 12
3,976 employees at the end of June 2012
1bn monthly active users as of October 2012
Approximately 81% of monthly active users are outside the U.S.
and Canada.
600 million monthly active users who used Facebook mobile
products in September 2012.
13. FACEBOOK | 3.2 CURRENT 13
Total active users
Users
Date Days later Monthly growth
(in millions)
August 26, 2008 100 1,665 178.38%
April 8, 2009 200[ 225 13.33%
September 15,
300 160 9.38%
2009
February 5, 2010 400 143 6.99%
July 21, 2010 500 166 4.52%
January 5, 2011 600 168 3.57%
May 30, 2011 700 145 3.45%
September 22,
800 115 3.73%
2011
April 24, 2012 900 215 1.74%
October 4, 2012 1,000 163 2.04%
16. FACEBOOK | 4.1 BUSINESS MODEL 16
How Facebook makes money!
1.Advertising
• Facebook‟s single most important revenue channel is advertising
• Facebook generates over a billion $ in revenue each year
A. Self Serve:
• By visiting the “Create your Ad” page on Facebook you can set up
your own advertising campaign on Facebook
• Small businesses like doctors, lawyers, restaurants benefit most
• Facebook to generate somewhere in the range of $600 million
from Self Serve
B. Engagement Ads
• Solution for Large Brands, enables brands to interact with users
directly
• Facebook would generate around $400million from Engagement
Ads
17. FACEBOOK | 4.2 BUSINESS MODEL 17
2. Virtual Gifts and Shops
• Facebook currently generates a large amount of revenue from the
Facebook Gift shop
• Allows users to send gifts to one another
• At an average cost of $1 per gift, generating upwards of $200 million
last year
3. Facebook Credits
• Allows consumers to buy credits for Apps such as Farmville, Airline
Manager and etc
• A percentage of the credit purchased goes to Facebook as fees
• Facebook earned upwards of $200 million last year
• Expected to cross $1 billion by 2016
24. FACEBOOK | 5.6 FINANCIAL HIGHLIGHTS 24
• IPO stands for “initial public offering”. Now Facebook started its
own public trading stock. This IPO is expected to be the largest
run internet based company. Points to know:-
• 82million shares traded in first 30 seconds on market
• Mark Zuckerberg's stake is valued at $19.1billion
• Critics have said $38 share price is too high - and it is FOUR
times bigger than Google's $25bn when it launched as a public
company in 2004
25. FACEBOOK | 5.7 FINANCIAL HIGHLIGHTS 25
• Mr. Zuckerberg rang the Nasdaq opening bell from Facebook
HQ, flocked by dozens of his employees and COO Sheryl
Sandberg
• Began trading under 'FB' at $42 a share - 10% higher than
expected
• But closes at modest $38.23, only 23 cents higher than initial
estimate
27. FACEBOOK | 6.1 COMPETITORS 27
Twitter, Inc. (Private)
MySpace, Inc. (Public Subsidiary)
LinkedIn Corporation (Public)
Google, Inc. (Public)
28. FACEBOOK | 6.2 COMPETITORS 28
COMPARABLES:
Google, Inc.
Microsoft, Inc.
Amazon.com, Inc.
LinkedIn Corporation
Netflix, Inc.
Yahoo! Inc.
