Facebook, Inc. at a Glance

Uppers

  • High compensation and great benefits
  • Collaborative work environment with high autonomy
  • Off-the-charts résumé appeal

Downers

  • Long hours and a lot of overtime
  • Sink or swim culture
  • Intense working environment

The Bottom Line

  • There's a reason Facebook appears on the top of so many career fantasy wish lists: they're a great employer that only take the cream of the crop.

About Facebook, Inc.

When it comes to social networking, it's wise to put your best face forward. Facebook, the social networking juggernaut, lets users share information, post photos and videos, play games, and otherwise connect with one another through online profiles. The site, which allows outside developers to build apps that integrate with Facebook, boasts more than a billion total users. The firm was launched in 2004 by Harvard student Mark Zuckerberg as an online version of the Harvard Facebook. (The name comes from books of freshmen's faces, majors, and hometowns that are distributed to students.) In 2012 Facebook began publicly trading after filing one of the largest IPOs in US history.

Operations

Facebook's primary products include the Facebook app, Instagram, Messenger, WhatsApp, and Oculus. Facebook enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers. Instagram enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends. Messenger allows for a rich and expressive way to communicate with people and businesses across a variety of platforms and devices. WhatsApp Messenger is a messaging application that is used by people around the world on a variety of mobile platforms. The Oculus virtual reality technology and content platform powers products that allow people to enter a completely immersive and interactive environment to play games, consume content, and connect with others.

Geographic Reach

Global in its reach, Facebook generates more than half of its revenue from outside of the US. The majority of its international business comes from customers located in western Europe, Australia, Canada, and China. Facebook sees India in particular as a key source of growth. The company has offices and data center facilities located all over the world.

Sales and Marketing

Facebook, which has a global sales force, earns more than 95% of its revenue from the sale of advertising (about $26 billion in fiscal 2016). The company spent $310 million on its own advertising and promotional expenses during 2016.

Financial Performance

Facebook has experienced exponential growth over the past few years, enabling it to dominate the social networking world as the most trafficked site of its kind in the US.  Its revenue was $27.64 billion in fiscal 2016, up 54% year-over-year. The company's advertising revenue was $26.89 billion in fiscal 2016, up 57% year-over-year.

Facebook's net income was $10.22 billion in fiscal 2016, up from $3.6 billion in fiscal 2015. The company has a surplus of cash on hand from operations. It ended fiscal 2016 with more than $16 billion in cash. Facebook's capital expenditures were $4.49 billion in fiscal 2016.

Strategy

Facebook owes the bulk of its growth to its ability to lure more and more visitors to its site and keeping them engaged. The site then stores data about its users and sells that info to advertisers and marketers. The growth in Facebook's advertising business, driven by mobile ads customized for individuals, has been staggering.

Since Facebook is a free service, it relies almost completely on ads to make money. The company constantly needs creative new ways to let businesses sell their products and services through its applications. That is why the company has spread its advertising business beyond Facebook itself and onto the other popular messaging and photo-sharing apps it owns.

The company's strategy includes making key acquisitions to add specialized employees and complementary companies, products, or technologies. Facebook also continues to invest in its own core products and services to better serve its existing users and customers. The company spends considerable time and money on research and development. Its R&D expenses were $5.92 billion, $4.82 billion, and $2.67 billion in 2016, 2015, and 2014, respectively.

Mergers and Acquisitions

Acquisitions to add specialized employees and complementary companies, products, or technologies has long been a part of Facebook's strategy. Even though the company has slowed down its pace of acquiring other companies somewhat, Facebook did acquire three different companies in 2016.

In September 2016 Facebook acquired Nascent Objects, a small California startup that focuses on creating a modular electronics system that consumers could use to build their own gadgets. The acquisition of Nascent is geared towards strengthening Facebook’s hardware offerings.

During 2016 Facebook also acquired facial recognition startup FacioMetrics. The acquisition of FacioMetrics enhanced Facebook's photo and video special effects. Facebook acquired social analytics service CrowdTangle during 2016 as well.

- Show Less + Show Full Description

Company News and Press Releases

- Show Less + Show More News and Press Releases

Facebook, Inc.

1601 Willow Rd
Menlo Park, CA 94025-1456
Phone: 1 (650) 543-4800

Stats

  • Employer Type: Public
  • Stock Symbol: FB
  • Stock Exchange: NASDAQ
  • Chairman and CEO: Mark Zuckerberg
  • CFO: David M. Wehner
  • Chairman and CEO: Mark Zuckerberg
  • 2016 Employees: 17,048

Major Office Locations

  • Menlo Park, CA

Other Locations

  • Palo Alto, CA
  • Santa Clara, CA
  • Washington, DC
  • Atlanta, GA
  • Chicago, IL
  • Birmingham, MI
  • Forest City, NC
  • Austin, TX
  • Dallas, TX
  • Seattle, WA
  • Sao Paulo, Brazil
  • Berlin, Germany
  • Hyderabad, India
- Show Less + Show More