Based on the revenue per user, analysts say Facebook is a considerably weaker than other Internet giants like Google and Yahoo.
In May 2011 it was estimated that Facebook would reach this year a turnover of nearly two billion dollars. The data presented in connection with the IPO application indicate that Facebook reached in 2011 profits of $668 million, resulting in a turnover of 3.7 billion.
Although 370 million dollars represent tremendous growth, eMarketer analyst Debra Williamson, said their forecast was 500 million higher than the final result.
Facebook has an annual turnover of U.S. $4.40 per user. The equivalent for Google is $30. Yahoo and AOL, companies are considered “troubled”, with an annual turnover of $7 per user and $10 respectively.
Facebook CEO Mark Zuckerberg has chosen so far a business model based on advertising sales and charging for the use of games. This model suggests that companies have until now been able to create profiles on Facebook and use them for commercial promotion without paying Facebook.
However, the IPO profitability requirements may increase on Facebook. According to analysts, company profiles may become an important source of revenue for Facebook.
Note that in the initial public offering (IPO), Facebook says it does not seek maximum profit at the expense of users.
In late January, the Ehrenberg-Bass Consulting released a study that questioned the importance of the “I like it.” button.