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Facebook Turns Profit, Hits 300-Million-User Mark

Posted on: Wednesday, 16 September 2009, 12:30 CDT

Facebook has become a profitable business, as its population has reportedly grown to more than 300 million users worldwide.

In a blog post on Tuesday, Facebook CEO Mark Zuckerberg said the social networking site had increased in size to about 307 million users.

As of July, the social network had hit the 250-million-member mark, which indicates growth at a rate of more than 800,000 new members each day.

“We're also succeeding at building Facebook in a sustainable way,” Zuckerberg wrote.

“Earlier this year, we said we expected to be cash flow positive sometime in 2010, and I'm pleased to share that we achieved this milestone last quarter. This is important to us because it sets Facebook up to be a strong independent service for the long term.”

Analysts told Reuters that the announcement shows that Facebook can turn a profit on its own and find ways to make money through the site.

"It's certainly meaningful to show that this is absolutely the real deal," said Broadpoint Amtech analyst Ben Schachter. "They are executing. People are spending money on the site."

Facebook spokesman Larry Yu said that 70 percent of Facebook users are now outside the US.

Facebook received outside investments to the tune of 200 million from a Russian firm called Digital Sky Technologies in May.

Facebook board member Mark Andreesen told Reuters earlier this year that the company will surpass $500 million in revenue this year.

In a set of statistics posted by Facebook, the company found that the fastest growing demographic is those 35 years old and older and more than 6 billion minutes are spent on Facebook each day.

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On the Net:

• Facebook

Source: RedOrbit Staff & Wire Reports

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