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Digest

Facebook tops 900 million users, but penetration rate slows

Source: ReadWriteWeb
April 23, 2012
The biggest takeaway from Facebook's updated filing with the Securities and Exchange Commission is that the company will not be able to rely on adding new users at breakneck speed as a way of boosting revenue.

It's a fact that Facebook readily concedes.

"Historically, our user growth has been a primary driver of growth in our revenue," the company said in its fourth update to the S-1 notice it originally filed in February. "We expect that our user growth and revenue growth rates will decline as the size of our active user base increases and as we achieve higher market penetration rates."

There were relatively few surprises in the document: Facebook released more details of its Instagram purchase, saying it had paid $300 million in cash and 23 million shares. It also said U.S. and Canadian users made up 50% of its revenue on the first quarter ending March 31, down from 54% a year ago.

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