Though still a private company, Facebook can't seem to keep a lid on its financials. In the fourth quarter, the social network "generated ~$250 million of net income," sources tell
Business Insider. Previous reports pegged Facebook's profits at $355 million over the first nine month of 2010. "These sources say
the company is on track to generate about $2 billion of EBITDA in 2011," while one optimistic insider says Facebook could bank $4 billion this year. "The projections are just projections, obviously,
and Facebook probably isn't very concerned with generating cash at this point," Business Insider notes. "Even if revenue comes in as expected, Facebook could spend big money on servers, new
headquarters, new employees, or even big acquisitions and chew through that cash flow quickly." Presently, Facebook makes most of its money off brand advertising, and in particular, ads that send
users to virtual games.
