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VUJÀDÉ’S FACEBOOK SERIES Startup insights from a truly exciting case ! #1 BUSINESS MODEL CANVAS
VUJÀDÉ’S FACEBOOK SERIES
Startup insights from a truly exciting case !
#1
BUSINESS MODEL CANVAS
What does the market expect from facebook when valued at USD100B?
Based on a benchmark with Apple and Google. !
www.vujade.com
Vujàdé Ltd. – Supporting Forward Thinking
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Photo by: Vujàdé Ltd. – Jasper Bouwsma

Dear viewer !

Vujàdé Ltd. is strongly involved in supporting startups. As a consequence we have been following the incredible development of facebook in terms of number of users and according valuations. On February 2 nd 2012 facebook filed its Form S-1 for its long anticipated IPO at the US Securities and Exchange Commission.

The SEC documentation provides us with better insights in facebook and provides some facts after a long period of rumors and interpretations of the insane growth of an 8-year company valued at a USD100B. With a series of presentations Vujàdé Ltd will look into a number of different startup related topics to explain and illustrate the exciting world of startups and growth companies.

In this presentation we will compare facebook’s business model, financials and valuation with the market cap and financials of Apple (“a molecule-based business”) and Google (another “bits and bytes company”). The question being:

What does the market expect from facebook when valued at USD100B?

Happy sharing! Jasper Bouwsma
Happy sharing!
Jasper Bouwsma
when valued at USD100B? Happy sharing! Jasper Bouwsma Founder Vujàdé Ltd. Vujàdé Ltd. – Supporting Forward

Founder Vujàdé Ltd.

Vujàdé Ltd. – Supporting Forward Thinking

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FOR THIS PRESENTATION VUJÀDÉ LTD. HAS USED THE BELOW LISTED FORMS FILED TO THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION. EACH FORM FORM PROVIDES INSIGHTS IN THE 2011 REVENUES.

EACH FORM FORM PROVIDES INSIGHTS IN THE 2011 REVENUES. Vujàdé Ltd. – Supporting Forward Thinking SlideSlide
EACH FORM FORM PROVIDES INSIGHTS IN THE 2011 REVENUES. Vujàdé Ltd. – Supporting Forward Thinking SlideSlide

Vujàdé Ltd. – Supporting Forward Thinking

EACH FORM FORM PROVIDES INSIGHTS IN THE 2011 REVENUES. Vujàdé Ltd. – Supporting Forward Thinking SlideSlide
EACH FORM FORM PROVIDES INSIGHTS IN THE 2011 REVENUES. Vujàdé Ltd. – Supporting Forward Thinking SlideSlide
EACH FORM FORM PROVIDES INSIGHTS IN THE 2011 REVENUES. Vujàdé Ltd. – Supporting Forward Thinking SlideSlide
EACH FORM FORM PROVIDES INSIGHTS IN THE 2011 REVENUES. Vujàdé Ltd. – Supporting Forward Thinking SlideSlide

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THE BASIC FINANCIALS

 
 
 
 

Revenues 2011

     

(US$ Milion)

108’249

3’711

37’950

+% 2010

+66%

+88%

+29%

Earnings

25’922

1’000

11’632

Gross Margin

23.9%

26.9%

30.7%

THE CONSEQUENTIAL DRY FACTS:

1. APPLE, FACEBOOK AND GOOGLE ARE ALL HIGHLY PROFITABLE.

2.

FACEBOOK HAS THE STRONGEST YEAR OVER YEAR GROWTH, CLOSELY FOLLOWED BY APPLE

3. FACEBOOK REVENUE MULTIPLES:

1.

2.

APPLE = 29X FACEBOOK REVENUE GOOGLE = 10X FACEBOOK REVENUE

Vujàdé Ltd. – Supporting Forward Thinking

 
   

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SOME MORE FACTS & FIGURES

 
 
 
 

Market Cap / Valuation

US$507’8B

US$102.6B

US$201,9B

Incorporation

April 1 st 1976

February 4 th 2004

September 4 th 1998

Date of IPO

December 12 th 1982

May 1 st 2012

August 19 th 2004

Time Incorporation - IPO

2446 Days (6Y and 8 M)

3009 Days (8Y and 3M)

2210 Days

(6 Years)

Revenue @ IPO Earnings @ IPO

583M

3’711M

3’189M

61M

1’000M

640M

Market Cap post IPO

US$1.8B

US$100B !

US$23B

VUJÀDÉ’S INTERPRETATION:

IF IS ABOUT TIME THAT FACEBOOK DOES ITS IPO

1.

IN TERMS OF TIME SINCE INCORPORATION

2.

IN TERMS IF PROFITABILITY

SINCE INCORPORATION 2.   IN TERMS IF PROFITABILITY Vujàdé Ltd. – Supporting Forward Thinking SlideSlide ||

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SOME SIMPLE RATIOS

 
 
 
 

Price to Sales

3x (4.7x)

27x!

7x (5.5x)

Price to Earnings

(19.7x)

100x !

(17.3x)

VUJÀDÉ’S INTERPRETATION:

IF THE MARKET THINKS THAT FACEBOOK IS WORTH A 27X REVENUE, IT MUST BE BASED ON FUTURE REVENUE AND PROFIT EXPECTATIONS. SO LETS LOOK AT FACEBOOK’S BUSINESS MODEL

EXPECTATIONS. SO LETS LOOK AT FACEBOOK’S BUSINESS MODEL Vujàdé Ltd. – Supporting Forward Thinking SlideSlide ||

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FACEBOOK

BUSINESS MODEL

CANVAS

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STATEMENT #2! fb makes as much advertising revenue as Google at their IPO.! QUESTION To
STATEMENT #2!
fb makes as much
advertising revenue as
Google at their IPO.!
QUESTION
To what extent is fb able
to establish and scale
their advertising business? !
STATEMENT #1!
12% of total revenues and
80% of payment revenues
come from Zynga.!
QUESTION
Is that part of the
business model indeed
scalable? !

STATEMENT #3! fb is still young. ! QUESTION What does fb have up their sleeve and what is it able to do with the cash generated from the IPO?!

is it able to do with the cash generated from the IPO? ! Vujàdé Ltd. –

Vujàdé Ltd. – Supporting Forward Thinking

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STATEMENT #4! currently, 3500 employees each generate appr. ! US$1.0M revenue. ! QUESTION A)  How
STATEMENT #4!
currently, 3500 employees
each generate appr. !
US$1.0M revenue. !
QUESTION
A)  How can that ratio be
improved !
B)  How to attract > talent?!
ratio be improved ! B)  How to attract > talent?! Vujàdé Ltd. – Supporting Forward Thinking

Vujàdé Ltd. – Supporting Forward Thinking

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CONCLUSION

IN THE END IT IS ALL ABOUT ATTRACTING TALENT WHO WILL BE ABLE TO SCALE FACEBOOK’S ADVERTISING BUSINESS AND USE THE FACEBOOK’S KEY RESOURCE (I.E. 845M USERS, FACEBOOK.COM) TO LAUNCH NEW PRODUCTS AND EXTENT THE BUSINESS MODEL.

 
 
 

#employees

3’500

32’500

Revenue/Employee

1’060’286

1’167’493

VUJÀDÉ’S INTERPRETATION:

FOR FACEBOOK IT WILL ALL BE ABOUT HIRING THOUSANDS UPON THOUSANDS OF EMPLOYEES TO GENERATE THE REVENUE AND PROFIT THE MARKET SEEMS TO EXPECT.

Just imagine hiring 60’000 people in a couple of years… !

imagine hiring 60’000 people in a couple of years… ! Vujàdé Ltd. – Supporting Forward Thinking

Vujàdé Ltd. – Supporting Forward Thinking

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Vujàdé’s facebook series Billionaires vs. Millionaires See our ! SlideShare www.slideshare.net/vujade! And Enjoy
Vujàdé’s facebook series
Billionaires vs. Millionaires
See our !
SlideShare
www.slideshare.net/vujade!
And Enjoy !
:)!
#2
Stay Tuned !
www.vujade.com
Vujàdé Ltd. – Supporting Forward Thinking
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Vujàdé Ltd. Postal Address P.O. Box 4 CH-3257 Grossaffolterm Visiting Address Elfenaustrasse 3 CH-2502 Biel/Bienne
Vujàdé Ltd.
Postal Address
P.O. Box 4
CH-3257 Grossaffolterm
Visiting Address
Elfenaustrasse 3
CH-2502 Biel/Bienne
+41 (0)31 32 32 300
Online
www.vujade.com
contact@vujade.com
VujadeLtd
Vujàdé Ltd. – Supporting Forward Thinking
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Photo by: Vujàdé Ltd – Jasper Bouwsma
Vu-jà-dé Vujàdé is the opposite of déjà-vu and refers to something that has not yet
Vu-jà-dé
Vujàdé is the opposite of déjà-vu and refers to something that
has not yet taken place or has not yet existed.
Looking for new solutions.
Critically questioning existing structures and behavior.
Looking at something from a different or an unusual point of view.
In other words: Vujàdé stands for innovation.
Vujàdé Ltd. – Supporting Forward Thinking
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Photo by: Vujàdé Ltd – Jasper Bouwsma
Photo: Vujàdé Ltd. – Supporting Forward Thinking