Facebook Updated Its IPO Form – Changes In Users, Risk Factors, Revenue and More

Omri Shabath

Facebook S-1 Amendment No 2Whenever a company files for an initial public offering (IPO), often it revised it and submit another fixed version of the S-1 form so the future (potential) investors will be updated and well informed about the company’s most recent state.

Yesterday, Facebook submitted its amended S-1 form which includes some significant changes and updates from the original filing at the beginning of February. The updated version of the document provides a great opportunity to go over the latest changes and events that Facebook can be affected by. Here are Facebook’s S-1 form most important updates:

Users

Facebook presented few small changes to the user stats it has presented before:

  • As for December 31st, the social network had 432 million monthly active users through mobile devices and not 425 as previously posted.
  • Facebook estimates that only about 58 million mobile monthly active users (reflects nearly 7% of the total users) are using the social network exclusively through mobile devices.
  • The growth of daily active users as a percentage from monthly active users between December 2010 (54%) to December 2011 (57%) is attributed to increased mobile usage.
  • India’s penetration rate estimated to be 60% (not 20%-30%), Brazil and Germany penetration rate 30%-40% (not 20%-30%), Japan, Russia, and South Korea penetration rate 20% or lower (not 15%).

Risk Factors

Due to recent events and occurrences, Facebook had to add and update some of its risk factors (as I discussed extensively before):

  • Facebook added that it presented Sponsored Stories to user’s mobile News Feed (part of its Premium ad package). As a result, the statement they the company don’t display mobile ads has dropped (however it still remains “unproven”).
  • As a result of the new Zynga’s gaming platform site launch and the concern that users may migrate to this site, it had to be added as a risk factor.
  • A whole new risk factor section dedicated to user metrics measurement difficulties was created. The difficulties are driven from things like duplicate user accounts (estimated to be 5%-6% of the total monthly active users) and automatic mobile activity (estimated to be less than 5% from the total daily active users).
  • The recent Yahoo’s threat to sue Facebook over alleged 13 patent infringements, even though yet to actually take a legal action, has been mentioned.

Revenue

Facebook added a section where it elaborates how the company’s revenue is distributed by geography (numbers are rounded):

  • Total Worldwide- $943 million advertising, $188 million other.
  • U.S. and Canada- $462 million advertising, $108 million other.
  • Europe- $306 million advertising, $55 million other.
  • Asia- $95 million advertising, $20 million other.
  • Rest Of The World- $79 million advertising, $8 million other.

Facebook additionally added that its new real-time Insights reporting can maximize the results of advertisers as they track and optimize their performances in real-time.

Those are all the changes I have found, if you find more, you are welcome to leave a comment!