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	<title>BoomTown &#187; EBITDA</title>
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		<title>Chatty Zuckerberg Tells All About Facebook Finances</title>
		<link>http://kara.allthingsd.com/20080131/chatty-zuckerberg-tells-all-about-facebook-finances/</link>
		<comments>http://kara.allthingsd.com/20080131/chatty-zuckerberg-tells-all-about-facebook-finances/#comments</comments>
		<pubDate>Fri, 01 Feb 2008 03:05:23 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
				<category><![CDATA[BoomTown]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[Kara Swisher]]></category>
		<category><![CDATA[Microsoft]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[financial]]></category>
		<category><![CDATA[social networking]]></category>
		<category><![CDATA[EBITDA]]></category>
		<category><![CDATA[Mark Zuckerberg]]></category>
		<category><![CDATA[Palo Alto]]></category>

		<guid isPermaLink="false">http://kara.allthingsd.com/20080131/chatty-zuckerberg-tells-all-about-facebook-finances/</guid>
		<description><![CDATA[Want to know about how privately held Facebook is doing from a financial point of view?

Well, just ask Mark Zuckerberg!
This afternoon, at an all-hands meeting held in a Palo Alto, Calif., theater near the social-networking site&#8217;s headquarters, the 23-year-old founder was quite voluble on that topic, outlining numbers that a more experienced CEO might think [...]]]></description>
			<content:encoded><![CDATA[<p>Want to know about how privately held Facebook is doing from a financial point of view?</p>
<p><img src='http://kara.allthingsd.com/files/2007/10/facebook.thumbnail.jpg' alt='facebook' /><img src='http://kara.allthingsd.com/files/2007/07/images7.jpeg' alt='mouth' /></p>
<p>Well, just ask Mark Zuckerberg!</p>
<p>This afternoon, at an all-hands meeting held in a Palo Alto, Calif., theater near the social-networking site&#8217;s headquarters, the 23-year-old founder was quite voluble on that topic, outlining numbers that a more experienced CEO might think twice about unveiling to a large audience.</p>
<p>With an open dial-in number! Many employees, in fact, were horrified that Zuckerberg would be so blabby about such important financial information. Others loved it.</p>
<p>Most were simply surprised (although, to be fair, Google Co-Founders Larry Page and Sergey Brin used to give a lot of detailed company info to their employees before going public, but in coordination with other execs). </p>
<p>&#8220;I can&#8217;t believe he was doing it,&#8221; said one. &#8220;It was really unbelievable.&#8221;</p>
<p>Believe it! Some highlights? </p>
<p>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.</p>
<p>More interesting was the news that Facebook would spend $200 million next year on capital expenditures, which is a whole lot of servers.</p>
<p>By the way, more expenses, noted chatty Mark, those employee levels would rise to more than 1,000 in 2008 from 450 now.</p>
<p>And Zuckerberg also said the company&#8217;s EBITDA&#8211;earnings before interest, taxes, depreciation and amortization and a number widely used by Wall Street as an indication of operating performance&#8211;would be $50 million in 2008.</p>
<p>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. </p>
<p>But who&#8217;s counting? Zuckerberg apparently said he did not care about maintaining EBITDA anyway.</p>
<p>That&#8217;s because Facebook collected $300 million in investments recently from Microsoft and other investors, which pegged the valuation of the company at $15 billion.</p>
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