Comments on: Facebook is Profitable. Again. http://www.byrnehobart.com/blog/facebook-is-profitable-again/ Salesmanship in Pixels Fri, 03 Feb 2012 05:59:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Byrne http://www.byrnehobart.com/blog/facebook-is-profitable-again/comment-page-1/#comment-32 Byrne Wed, 16 Sep 2009 13:59:44 +0000 http://www.byrnehobart.com/blog/?p=94#comment-32 That's true. They are not profitable in an accounting sense. But positive cash flow and negative profits are more sustainable than negative cash flow and positive profits. Especially if you look at their cash cycle—they buy servers and depreciate them, and the money they get for ads gets paid in upfront. Which means that if they're cash flow positive now, they're likely to be profitable later. The only exception would be if they were depreciating assets in a weird way, or something like that. That’s true. They are not profitable in an accounting sense. But positive cash flow and negative profits are more sustainable than negative cash flow and positive profits. Especially if you look at their cash cycle—they buy servers and depreciate them, and the money they get for ads gets paid in upfront. Which means that if they’re cash flow positive now, they’re likely to be profitable later. The only exception would be if they were depreciating assets in a weird way, or something like that.

]]> By: Byrne http://www.byrnehobart.com/blog/facebook-is-profitable-again/comment-page-1/#comment-171 Byrne Wed, 16 Sep 2009 13:59:00 +0000 http://www.byrnehobart.com/blog/?p=94#comment-171 That's true. They are not profitable in an accounting sense. But positive cash flow and negative profits are more sustainable than negative cash flow and positive profits. Especially if you look at their cash cycle—they buy servers and depreciate them, and the money they get for ads gets paid in upfront. Which means that if they're cash flow positive now, they're likely to be profitable later. The only exception would be if they were depreciating assets in a weird way, or something like that. That’s true. They are not profitable in an accounting sense. But positive cash flow and negative profits are more sustainable than negative cash flow and positive profits. Especially if you look at their cash cycle—they buy servers and depreciate them, and the money they get for ads gets paid in upfront. Which means that if they’re cash flow positive now, they’re likely to be profitable later. The only exception would be if they were depreciating assets in a weird way, or something like that.

]]> By: BRK http://www.byrnehobart.com/blog/facebook-is-profitable-again/comment-page-1/#comment-31 BRK Wed, 16 Sep 2009 13:56:49 +0000 http://www.byrnehobart.com/blog/?p=94#comment-31 Facebook did not say they are "profitable". They said they had a few quarters of positive cash flow. There is a significant difference between profitability and cash flow positive. of course, the Facebook PR machine wants all the bloggers who don't understand the difference to take their statement and run off with grand speculations, like this post. http://www.investopedia.com/articles/01/110701.asp Facebook did not say they are “profitable”. They said they had a few quarters of positive cash flow. There is a significant difference between profitability and cash flow positive.

of course, the Facebook PR machine wants all the bloggers who don’t understand the difference to take their statement and run off with grand speculations, like this post.

http://www.investopedia.com/articles/01/110701.asp

]]> By: BRK http://www.byrnehobart.com/blog/facebook-is-profitable-again/comment-page-1/#comment-170 BRK Wed, 16 Sep 2009 13:56:00 +0000 http://www.byrnehobart.com/blog/?p=94#comment-170 Facebook did not say they are "profitable". They said they had a few quarters of positive cash flow. There is a significant difference between profitability and cash flow positive. of course, the Facebook PR machine wants all the bloggers who don't understand the difference to take their statement and run off with grand speculations, like this post. http://www.investopedia.com/articles/01/110701.asp Facebook did not say they are “profitable”. They said they had a few quarters of positive cash flow. There is a significant difference between profitability and cash flow positive.

of course, the Facebook PR machine wants all the bloggers who don’t understand the difference to take their statement and run off with grand speculations, like this post.

http://www.investopedia.com/articles/01/110701.asp

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