Facebook’s Revenue Deceleration Is Over! (FB)

Source: http://www.businessinsider.com/chart-of-the-day-facebook-revenue-2012-10

The reason Facebook tanked after its IPO is that revenue growth decelerated for the past several quarters. 

That’s not good for a story with Facebook’s revenue and profit multiples. It needs to be growing very fast.

So it was very good news for Facebook today, when it reported earnings that showed the company has finally stabilized revenue growth – 32% last quarter and 32% this quarter. You can see this in the chart below.

What this chart doesn’t show is the even better news that Facebook has actually re-accelerated its advertising revenues – up to 32% y/y this quarter from 28% y/y last quarter.

chart of the day, facebook revenue growth, oct 2012

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Tuesday, October 23rd, 2012 news No Comments

Facebook Just Launched ANOTHER New Revenue Stream, Goes After Groupon (FB)

Source: http://www.businessinsider.com/facebook-offers-ads-are-no-longer-free-2012-9

mark zuckerberg, disrupt 2012,

Facebook Inc said it will start charging businesses to run Offers on its social network, turning a previously free service into a potential revenue generator at a time when Wall Street is demanding new sources of growth and profit from the company.

Facebook launched Facebook Offers earlier this year, letting retailers and other local merchants send deals to their Facebook fans.

Users claim the offers from their News Feeds and redeem the vouchers at stores to get discounts.

The service has been free, but in coming weeks Facebook will require merchants to pay at least $5 on related ads to promote each Facebook Offer to a targeted audience of fans and friends of fans. The cost will vary based on the size of a company’s Facebook pages.

Since Facebook went public in May, the company has been under pressure from Wall Street to show how it can turn its giant social network into a money machine. Facebook shares have lost about 40 percent of their value since the IPO.

The commerce potential of Facebook, known as f-commerce, has yet to materialize, partly because retailers have been able to feast on a host of free tools on the social network to attract customers.

Tying Facebook Offers to a paid ad service suggests the company is working to change this.

“We think this aligns incentives nicely,” said Gokul Rajaram, director of product management for Facebook’s advertising and Pages businesses. “The best results on Facebook Offers will come from organic distribution plus paid distribution.”

In the past, some Facebook Offers have not been relevant to all users, partly because some people saw deals in their News Feeds from merchants located far away from where they live, Rajaram ad! ded.

“The requirement to pay for related ads will focus merchants on who and where they want the offer to reach,” he said.

Facebook is also expanding Offers to online-only businesses, he added. Before, the service was available only to merchants with physical locations.

Facebook is also adding barcodes for offers, so customers can redeem offers more easily. The barcodes work globally, Rajaram noted.

The executive declined to disclose how many Facebook Offers have been run so far, how many merchants have taken part, or how many deals have been claimed and redeemed by consumers.

However, he said Facebook is “very happy” with the success of its Offers business.

“That’s why we’re expanding and investing more in it,” Rajaram said.

(Reporting by Alistair Barr and Alexei Oreskovic; Editing by Phil Berlowitz)

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Thursday, September 20th, 2012 news No Comments

GRPN – Reality Settling In

down 22% so far after earnings disappoint; off 78% since IPO
Inline image 1


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Tuesday, August 14th, 2012 news No Comments

LinkedIn Is The Only Consumer Tech IPO That’s Doing Well (LNKD, FB, GRPN, ZNGA, YELP, P)

Source: http://www.businessinsider.com/chart-of-the-day-stocks-after-tech-ipos-2012-7

This chart shows the performance of all the big names in consumer tech that have IPO’d lately. As you can see, the only winner in the bunch for public market investors has been LinkedIn.

chart of the day, stock performance for tech companies after their recent ipos, july 2012

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Tuesday, July 31st, 2012 news No Comments

Facebook Pay To Promote Feature

Source: http://gizmodo.com/5914226/facebooks-pay+to+promote-posts-feature-has-arrived

Facebook's Pay-to-Promote Posts Feature Has ArrivedWe’ve heard rumblings that Facebook was testing a system called Highlight that would allow people to pay to promote a post, and now obnoxiously enough, it’s starting to show up.

Chris Cantalini, who runs a music blog called Gorilla vs. Bear, tweeted that he was posting a track by Holy Balm when he was presented with the above prompt. It asked him if he wanted to pay as much as $100 so that just one post, one song, could reach an estimated 39,000 people. For the record, only 37,000 people already Like Gorilla vs. Bear on Facebook.

This is just one instance, and the feature is supposedly not just for brands, but individuals as well, so it means we might be seeing Highlight in more places soon. Now that Facebook’s IPO has tanked, perhaps it’s looking for some fresh cash. [@GorillavsBear]

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Wednesday, May 30th, 2012 digital No Comments

Facebook Has The Worst IPO Of The Decade (FB)

Source: http://www.businessinsider.com/chart-of-the-day-facebook-has-the-worst-ipo-of-the-decade-2012-5

Facebook’s IPO has been the worst performing IPO of the decade after five days, according to this chart from Bloomberg.

chart of the day, stock performance for the 10 largest ipos, may 2012

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Wednesday, May 30th, 2012 news No Comments

GM Pulled Ads After Facebook Begged It To Use Free Media (FB)

Source: http://www.businessinsider.com/gm-pulled-ads-after-facebook-begged-it-to-use-its-free-media-2012-5

free sign man

General Motors pulled its entire $10 million ad budget after Facebook executives urged the company to concentrate more on posting free content to its web page, according to Reuters.

The account dovetails with BI’s May 16 report, which noted that General Motors wasn’t executing the basics — posting compelling content for free on its Brand Pages — of its Facebook strategy correctly.

Reuters said:

Facebook may only have itself to blame for why General Motors rained on its IPO parade this week.

… During the meeting with GM, Facebook officials emphasized the lure of free posted content on their website, the sources said. By contrast, the ads looked “kind of meager and perhaps expensive by comparison,” one source said.

See Also:

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Friday, May 18th, 2012 news No Comments

Facebook Insiders’ Stock Sale In Context

Source: http://www.businessinsider.com/chart-of-the-day-percent-insiders-are-selling-of-total-stock-offering-2012-5

57% of the Facebook stock being offered in the IPO is coming from insiders selling shares. For some context on how unusual that is, the Wall Street Journal reports that only 37% of Google’s IPO offering came from insiders, and 0% for Amazon and Yahoo came from insiders.

In Facebook’s case, it’s going public at a later stage in its development, so investors are itching to get out. And word is that Facebook asked insiders to sell during the IPO so they don’t crush the stock when the lock-up period ends.

chart of the day, percent inisders are selling of total stock offering at ipo, may 2012

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Wednesday, May 16th, 2012 news No Comments

Bankers Are Monkeying With Reporters Covering The Facebook IPO

Source: http://www.businessinsider.com/bankers-are-monkeying-with-reporters-covering-the-facebook-ipo-2012-5

monkey iphone

Reuters says the Facebook IPO is oversubscribed – that institutional buyers who have already bought in are calling around looking for some way to somehow get more stock.

Meanwhile, Bloomberg says that just the opposite – that demand for the IPO is weak and that Facebook is going to have to rely on retail investors for its offering to pop.

Here’s what’s probably going on: Buyers who want the price of Facebook shares to go down are telling reporters that supply is weak. Bankers selling the IPO, who want to the price to go up, are telling reporters that the thing is oversubscribed.

You can kind of tell what’s happeneing because of the way both Bloomberg and Reuters carefully couched reporting.

The Reuters headline is: “Facebook’s IPO already oversubscribed -source.” That means: “one guy who should know told us.”

The Bloomberg headline is: “Facebook IPO Said to Get Weaker-Than-Forecast Demand.” That means “this may not be what’s actually going on, it’s just what some people SAY is going on. So don’t blame us if it isn’t true.”

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Friday, May 11th, 2012 news No Comments

Check Out How Weak Facebook’s Revenue Growth Is Compared To Google Pre-IPO (GOOG, FB, GRPN, ZNGA, AMZN, LNKD)

Source: http://www.businessinsider.com/facebook-compared-to-google-pre-ipo-2012-5

Here’s are two great charts from Herman Leung and Deepak Mathivanan and Susquehanna Financial Group comparing Facebook pre-IPO to Google and other popular consumer tech companies pre-IPO.

In the first chart you can see Facebook’s revenue in the eight quarters before it IPOs compared to revenue of Google, LinkedIn, Zynga, Groupon, and Amazon. As you can see, Facebook’s revenue is much greater:

Facebook revenue

While it looks good for Facebook at first glance, it’s actually not.

Below you can see Facebook’s revenue growth four quarters prior to IPO as compared to Google, LinkedIn, and Zynga.

Google is the one to really focus on because lots of people are positioning Facebook as the next Google. At these growth rates, that’s just not true, at least not right now.

Facebook revenue pre-IPO

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Monday, May 7th, 2012 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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