Social Network Facebook

1. 1

2. Agenda
 Executive Summary of Global Market – Social Network
 About Facebook
 Facebook - Mission
 Current Core –Team
 Facebook – Timelines
 Facts & Figures
 Facebook Users Worldwide
 Competition
 Acquisition
 SWOT - Analysis
 Financials
 IPO
 Case I – Indian Case
 Case II – International Case
 Conclusion
 Video – 7 Minutes
2

3. Executive Summary- Social Network
 In 2013 around 1.61 billion people log in to social networking sites at least
monthly, from any electronic device
 That’s a 14.2% gain on social networker numbers from 2012
 Market will grow at the rate of 10 % CAGR
 By 2017, 2.33 billion people will use social networks.
 Social media advertising market is expected to grow 52% to 58% YOY
Drivers
 Increasing popularity of social media sites
 Emerging countries like India and China large potential internet users in future
 Increasing sale of smart phones is a key driver for this market
 Most of the social networks are free for the users
Challenge
 Increasing abuse of social media and security concerns
 The risk of confidential information leakage example: - Personal information
3

4. 4

5. About Facebook
Facebook® is a “social networking website”
that allows you to create an online page to
connect with friends, family, or make new
friends with anyone anywhere.
On your Facebook® page you can share
pictures, personal information , messages,
videos , join groups and add applications.
5

6. Mission
6

7. thefacebook
7

8. Facebook Current Core Team
Mark Zuckerberg (Chairman and CEO – 28.2% Stake) Age-29
• Personal wealth, as of April 2014, is estimated to be $25.3 billion
• Mark Zuckerberg receives a one-dollar salary as CEO of Facebook
Sheryl Sandberg (COO) Age-44
• American businesswoman, activist, and writer
• Worth over US$1 billion -17.2 million Facebook shares, 0.5% stake
David Ebersman (CFO) Age - 45
• He was hired as he had "public company experience"
• Facebook issued an IPO of its stock on May 18, 2012
Mike Schroepfer (Chief Technology Officer) Age -39
• Mike Schroepfer is an entrepreneur & technical architect
• Schroepfer holds 2.1 million shares of Facebook
8

9. Facebook Users Worldwide
9
Source: Facebook

10. Facts About Facebook
 Facebook employed only 6,337 people directly
 Facebook has more than 1.23 billion users globally
 Mobile monthly active users were 945 million as of December 31, 2013, an
increase of 39% year-over-year.
 Facebook Deals with Everyday: 2.7 Billion Likes, 300 Million Photos
Uploaded and 500 Terabytes of Data in real time
 Facebook Handles 300 Petabytes of Daily Data, it stores for its active users
 Users are exposed to 1500 pieces of potential content every day.
 There are 70 different languages available for users on Facebook
 The average person spends between 18 and 20 minutes viewing their
Facebook account
 Originally, engineers wanted to call the “Like” button the “Awesome” button
 By 2010, Facebook became profitable
10

11. 2004
2005
Oct 2005: Facebook
begins to add international
school networks, Launch of
Facebook Photos & reached
6 million users
Sept. 26, 2006: Facebook
expands registration so anyone
can join- reached 12 million
users
Feb 4, 2004: Mark
Zuckerberg and co-founders
Dustin Moskovitz, Chris
Hughesand Eduardo Saverin
launch Facebook
Source: Wikipedia, Facebook & Google
Facebook - Timelines
2006
2007
Nov. 26, 2007: Launch of self-
service Ads platform +
Facebook Pages – reached 58
million users
2008
2008: Launch of Facebook
Chat, Facebook iPhone app
& New Facebook launches
2009
2009: Introduction of the Like button,
New Facebook home page launches &
reached 356 million users
2011: Launch of video
calling, Timelines -reached
845 million users
2011
2012
2012: Facebook announces
acquisition of Instagram, IPO &
More than 1 billion people
are active on Facebook
2014
2014: Facebook is 10 Year
Old, Acquired WhatsApp &
Oculus-1.23 Billion users

12. Competition
12
 Connecting
 1.23 Billion
 $152.58bn
 Passive
 Friends
 Information
 232 Million
 $33.05bn
 Active
 Followers
 Business Oriented
 260 Millions
 $ 21.4 Billions
 Passive
 Connection
Type of Social
Media
Active users
Market Cap
Communicati
on Form
Difference

13. Major- Acquisitions by Facebook
WhatsApp Messenger ( $ 19 Billion) 55 Employee
• WhatsApp has 450million users with 70% active daily, which is
already 60% the size of Facebook’s daily user community
(550million.)
• 50bn- Number of messages WhatsApp processes a day
Oculus VR ( $ 2 Billion) 75 Employee
• Oculus VR is a virtual reality technology company
• Oculus Facebook's answer to Google Glass?
Instagram ( $ 1 Billion) 13 Employee
• 13 employees created a billion dollar app
• The average Facebook user has 26 profile photos
13

14. SWOT- Analysis
14
Strengths
 Integration with websites and applications
 More than a billion active monthly users
 Excellent users experience
 Understanding of user’s needs and
behavior
Opportunities
 Increasing number of people using
Facebook through mobile devices
 Expansion to China
 Diversify sources of revenue
 Open Facebook marketplace
Weaknesses
 Weak CTR of advertisements
 Social network lacks of some features
 One source of revenues – advertisements
on Facebook
 Attitude towards users’ privacy
 Lack of website customization
 Weak protection of users’ information
Threats
 Increasing number of mobile internet
users
 Users using ad-block extensions
 Slow growth rate of online advertising
 Identity thefts
 Weak business model

15. IPO & Share Price History
15

16. Financials- Last 5 Years
16
Years/ Particulars 2009 2010 2011 2012 2013
Revenue 777$ 1,970$ 3,711$ 5,089$ 7,872$
Revenue Growth % 154% 88% 37% 55%
Net Income 122$ 372$ 668$ 32$ 1,490$
Net Income Growth % 205% 80% -95% 4556%
Years/ Particulars 2009 2010 2011 2012 2013
Total Assets 1,110$ 2,990$ 13,790$ 15,100$ 17,900$
Total Assets Growth % 169% 361% 9% 19%
Total Liabilities 241$ 828$ 1,430$ 3,350$ 2,430$
Total Liabilities / Total Assets 22% 28% 10% 22% 14%
Debt Ratio 0.22 0.28 0.10 0.22 0.14
All figures are in Million
$777
$1,970
$3,711
$5,089
$7,872
$122
$372
$668
$32
$1,490
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
2009 2010 2011 2012 2013
Facebook Revenue & Net Income
Revenue
Net Income

17. Indian Case Study – Election Campaign
17

18. Global Case Study- Zynga
Social game services company founded in July 2007
Zynga states its mission as "connecting the world
through games."
Social gaming pioneer Zynga, creator of the Facebook
games Farmville, CastleVille, and Mafia Wars, among
others, is one of tech’s big success stories
FarmVille became the most popular game on
Facebook
18

19. Conclusion
19
Mobile Monetization:– Facebook still has yet
to find the right formula for monetizing on
mobile.
Compete with Google:- Focus on evolving its
search engine & compete directly
 Growth from Subsidiaries :- The Subsidiaries
companies like Instagram, WhatsApp & Oculus
VR is diversifying the business & can fuel the
growth any time in near future

20. 20

21. 21