Facebook eecs441 rxc

1. Richard Chen | rxc

2. Maize & Blue Fund
Agenda
1) Problem and Product
2) Financial Info
3) Business Model Overview
4) Company Timeline
5) What’s HOT
6) Competition
7) My Predictions

3. Maize & Blue Fund
“Facebook exists to make the world more open and connected”
1. Messenger, instant messaging service (2011)
2. Oculus, virtual reality hardware and software (2012)
3. Instagram, photo-sharing app (2010)
4. WhatsApp, cross-platform IM and voice over IP service (2009)
FACEBOOK (PARENT COMPANY)
Problem and Product
SUBSIDIARIES
1. Free online social media and social networking
2. 2.2bn monthly active users
3. Web, iOS, and Android support
4. Captures 50 minutes of each user’s time, on average

4. Maize & Blue Fund
Agenda
1) Problem and Product
2) Financial Info
3) Business Model Overview
4) Company Timeline
5) What’s HOT
6) Competition
7) My Predictions

5. Maize & Blue Fund
Financial Info - I
Price Action
Revenue Breakdown (2012-17)
Financial OverviewOverview
•Price: $185
•Market Cap: $538B
•Beta: 0.63 (37%)
•Avg. Volume: 22M

6. Maize & Blue Fund
Financial Info - II
Net Income (millions)Revenue (millions)

7. Maize & Blue Fund
Financial Info - III
Daily Active Users (millions)
13%
12%
20%
6%
49%
Cost of Revenue
Marketing & Sales
Research & Development
General & Administrative
Net Income
Billings as % of Revenue
(Median Q1-4 2017)

8. Maize & Blue Fund
Agenda
1) Problem and Product
2) Financial Info
3) Business Model Overview
4) Company Timeline
5) What’s HOT
6) Competition
7) My Predictions

9. Maize & Blue Fund
Business Model
US & Canada
Average Revenue Per User
“If you don’t pay for the service, you are the product” - Prof. Andrew DeOrio in EECS 485
Worldwide

10. Maize & Blue Fund
Agenda
1) Problem and Product
2) Financial Info
3) Business Model Overview
4) Company Timeline
5) What’s HOT
6) Competition
7) My Predictions

11. Maize & Blue Fund
Timeline
2004:
(1) creation
(2) 500k seed
(3) 1m registered users
2006: algorithmically
generated news feed
released
2007: Beacon
released, ad system
that connects data
between 3rd parties
and Facebook for
targeted ads
2008: settlement for
IP lawsuit with
ConnectU
2009-10: Facebook
acquires
(1) FriendFeed
(2) Octazen Solutions
(3) Divvy-shot
2012:
(1) Featured Posts released
(2) Facebook Exchange
released
2015-18:
fake news

12. Maize & Blue Fund
Agenda
1) Problem and Product
2) Financial Info
3) Business Model Overview
4) Company Timeline
5) What’s HOT
6) Competition
7) My Predictions

13. Maize & Blue Fund
“The biggest risk is not taking any risk... In a world that changing really quickly, the only strategy that is
guaranteed to fail is not taking risks.” – Mark Zuckerberg, CEO
•Be Bold
•Focus on Impact
•Move Fast
•Be Open
•Build Social Value
What’s HOT - I
Talent AttractionCompany Core Values
•No. 1 on Glassdoor's 2018 best places
to work
•Employees say they feel valued and
trusted
•Employees driven by company's
mission
•Transparent leadership
•Comp, Perks, Benefits

14. Maize & Blue Fund
“none of the social network's success would have been possible without constant iteration and innovation”
- Wired
What’s HOT - II
•Move Quickly
•Responding to Google+, Facebook released new features at an unbeatable pace
•Innovate
•Hackathons: timeline, first person developer platforms, disasters safety-check, messenger, graph search
•360-video, full-screen, and interactive ads
•Offline messaging
•GIFs in comments
•Effectiveness
•Brands have doubled revenues with Facebook
♦Celebrity Cruises, Eventbrite, Ticketmaster
•Emergency location-tracking, via Messenger

15. Maize & Blue Fund
Agenda
1) Problem and Product
2) Financial Info
3) Business Model Overview
4) Company Timeline
5) What’s HOT
6) Competition
7) My Predictions

16. Maize & Blue Fund
Competition
TalentProduct
Newsfeed
Timeline
Search
IoT

17. Maize & Blue Fund
Agenda
1) Problem and Product
2) Financial Info
3) Business Model Overview
4) Company Timeline
5) What’s HOT
6) Competition
7) My Predictions

18. Maize & Blue Fund
My Predictions
To the Moon!
•Continued investment towards innovation
•Captivating and proven product
•Hidden gems

19. Maize & Blue Fund
References
1. https://investor.fb.com/financials/default.aspx
2. https://s21.q4cdn.com/399680738/files/doc_financials/2017/Q4/Q4-2017-Earnings-Presentation.pdf
3. https://investor.fb.com/investor-news/press-release-details/2017/Facebook-Reports-third-Quarter-2017-Results/default.aspx
4. https://en.wikipedia.org/wiki/Facebook
5. https://en.wikipedia.org/wiki/WhatsApp
6. https://en.wikipedia.org/wiki/Facebook_Messenger
7. https://en.wikipedia.org/wiki/Timeline_of_Facebook
8. https://www.nytimes.com/2016/05/06/business/facebook-bends-the-rules-of-audience-engagement-to-its-advantage.html
9. https://www.brainyquote.com/quotes/mark_zuckerberg_453450
10. http://www.businessinsider.com/facebook-best-place-to-work-in-america-2017-12
11. https://www.fastcompany.com/3067461/why-facebook-is-one-of-the-most-innovative-companies-of-2017
12. https://www.inc.com/jessica-stillman/5-of-the-coolest-innovations-currently-being-built-by-facebook-engineers.html

20. Thank You.