Decieving headline, facebook is going to invest 150M in servers next year creating huge fixed costs and a headache in 2 or 3 years time.
2007: $150 million (Same number that was given in August–i.e., no upside)
2008: $300-$350 million, up 100%+
Revenue for Facebook for 2007 will be $150 million, as has been widely reported. But for 2008, Zuckerberg projected revenue to be increased to $300 million to $350 million.
More interesting was the news that Facebook would spend $200 million next year on capital expenditures, which is a whole lot of servers.
By the way, more expenses, noted chatty Mark, those employee levels would rise to more than 1,000 in 2008 from 450 now.
And Zuckerberg also said the company’s EBITDA–earnings before interest, taxes, depreciation and amortization and a number widely used by Wall Street as an indication of operating performance–would be $50 million in 2008.
That means the company would have a negative cash flow of about $150 million (EBITDA minus CapEx), rather than break even, as it does now.