It’s a terrible day to be a Winklevi*. But seriously, we’ve been watching all day for Facebook to file for its IPO, and it’s happened. The S-1 is here. For an overview of what to look for, check out this infographic and this MarketWatch piece. Facebook is looking to raise $5B, and the deal is lead by Morgan Stanley with J.P. Morgan and Goldman Sachs in secondary positions.
Dan Primack has a no nonsense rundown of the filing.
(Updating: We’ll be adding to this story as it unfolds.)
Couple of tidbits to get you started:
- 845 million Facebook users, 483 million active daily, 100 billion friend connections
- Zynga accounted for approximately 12% of Facebook revenue $ZNGA
- Mark Zuckerberg owns 28.4% of Facebook, but claims 56.9% of voting power
- Facebook said it produced $3.71 billion in revenue in 2011, up from $1.97 billion a year earlier. (h/t)
- By comparison, Google recorded revenue of $37.9 billion last year
- Facebook’s 2011 profit was $1 billion, up 65% from the year earlier period.
- The number of ads delivered on the site grew 42% and the average price per ad grew 18% over 2011 from 2010.
- Stock ticker will be FB.
- Cash on hand: $3.9 billion (h/t)
- Revenue mix: 2011 85% was advertising. 2010 95% was advertising. 2009 100% advertising.
- 2.7B daily likes and comments per day
Facebook on the competition:
We face significant competition in almost every aspect of our business, including from companies such as Google, Microsoft, and Twitter
Some others they list: Cyworld in Korea, Mixi in Japan, Orkut (owned by Google) in Brazil and India, vKontakte in Russia, and Renren, Sina, and Tencent in China.
There’s been some talk about how fast Facebook can grow, given how huge it is. To see how they hope to (at least in terms of revenue) see this TechCrunch piece: Facebook’s Revenue Growth Strategy: Ad Targeting By In-App Behavior
Co-founder Eduardo Saverin (remember The Social Network?) posts on Facebook. I won’t make you click. All he says is “what a ride!”
Starting in 2013, Zuck will take $1 salary.
Here’s a somewhat odd bit from the filing on the company’s philosophy: The Hacker Way
The Hacker Way As part of building a strong company, we work hard at making Facebook the best place for great people to have a big impact on the world and learn from other great people. We have cultivated a unique culture and management approach that we call the Hacker Way.The word “hacker” has an unfairly negative connotation from being portrayed in the media as people who break into computers. In reality, hacking just means building something quickly or testing the boundaries of what can be done. Like most things, it can be used for good or bad, but the vast majority of hackers I’ve met tend to be idealistic people who want to have a positive impact on the world.The Hacker Way is an approach to building that involves continuous improvement and iteration. Hackers believe that something can always be better, and that nothing is ever complete. They just have to go fix it — often in the face of people who say it’s impossible or are content with the status quo.
It goes on like that. Go to the S-1 and CTRL+F “Hacker Way”.
“We believe that mobile usage of Facebook is critical to maintaining user growth and engagement over the long term, and we are actively seeking to grow mobile usage, although such usage does not currently directly generate any meaningful revenue,”
h/t AllThingsD who believe mobile to be a key challenge and risk factor for Facebook.
COO Sheryl Sandberg was the highest paid Facebook employee last year at $30.87M. A meaningful part of Zuckerberg’s compensation ($1.49M) was in “personal use of aircraft chartered in connection with his comprehensive security program for his family and friends.”
Via TechCrunch, here’s a letter from Zuckerberg on the filing:
LETTER FROM MARK ZUCKERBERG
Facebook was not originally created to be a company. It was built to accomplish a social mission — to make the world more open and connected.
We think it’s important that everyone who invests in Facebook understands what this mission means to us, how we make decisions and why we do the things we do. I will try to outline our approach in this letter.
At Facebook, we’re inspired by technologies that have revolutionized how people spread and consume information. We often talk about inventions like the printing press and the television — by simply making communication more efficient, they led to a complete transformation of many important parts of society. They gave more people a voice. They encouraged progress. They changed the way society was organized. They brought us closer together.
Today, our society has reached another tipping point. We live at a moment when the majority of people in the world have access to the internet or mobile phones — the raw tools necessary to start sharing what they’re thinking, feeling and doing with whomever they want. Facebook aspires to build the services that give people the power to share and help them once again transform many of our core institutions and industries.
There is a huge need and a huge opportunity to get everyone in the world connected, to give everyone a voice and to help transform society for the future. The scale of the technology and infrastructure that must be built is unprecedented, and we believe this is the most important problem we can focus on.
We hope to strengthen how people relate to each other.
Even if our mission sounds big, it starts small — with the relationship between two people.
Personal relationships are the fundamental unit of our society. Relationships are how we discover new ideas, understand our world and ultimately derive long-term happiness.
At Facebook, we build tools to help people connect with the people they want and share what they want, and by doing this we are extending people’s capacity to build and maintain relationships.
People sharing more — even if just with their close friends or families — creates a more open culture and leads to a better understanding of the lives and perspectives of others. We believe that this creates a greater number of stronger relationships between people, and that it helps people get exposed to a greater number of diverse perspectives.
By helping people form these connections, we hope to rewire the way people spread and consume information. We think the world’s information infrastructure should resemble the social graph — a network built from the bottom up or peer-to-peer, rather than the monolithic, top-down structure that has existed to date. We also believe that giving people control over what they share is a fundamental principle of this rewiring.
We have already helped more than 800 million people map out more than 100 billion connections so far, and our goal is to help this rewiring accelerate.
We hope to improve how people connect to businesses and the economy.
We think a more open and connected world will help create a stronger economy with more authentic businesses that build better products and services.
As people share more, they have access to more opinions from the people they trust about the products and services they use. This makes it easier to discover the best products and improve the quality and efficiency of their lives.
*Come on, it’s never really a bad day to be a Winklevi.
Here’s Facebook’s S-1 filing.