Can Facebook (FB) Generate $100 Billion in Revenue By 2020?

Can Facebook (FB) generate $100 billion in revenue by 2020?  By: Dr. John E. Ware, I

Unsurprisingly, Facebook (FB) revenue continues to grow rapidly. While Facebook (FB) is still a fairly young company, the revenue generated is significantly greater than other social media companies. The Kid conducted a trend analysis of Facebook's (FB) annual revenue from 2010 - 2016, which indicated accelerated revenue growth year over year.  

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Let’s review the trend analysis below (expressed in thousands):

Facebook (FB) generated revenue of $1,974,000 in 2010, $3,711,000 in 2011, $5,089,000 in 2012, $7,872,000 in 2013, $12,466,000 in 2014,  $17,928,000 in 2015, and $27,638,000 in 2016.  

The trend analysis reveals an 88% increase from 2010 to 2011, 37.1% increase from 2011 to 2012, 54.7% increase from 2012 to 2013, 58.4% increase from 2013 to 2014, 43.8% increase from 2014 to 2015, and 54.2% increase from 2015 to 2016.

Furthermore, revenue has grown a whopping 1,300% from 2010 to 2016 and an average annual growth rate of approximately 56%. Assuming Facebook's (FB) revenue continues to grow at an average rate of 56% per year, the company will exceed $100 billion in revenue by 2019. Approximately, $43,115,280 in 2017, $67,259,836 in 2018, $104,925,345 in 2019, and $163,683,538 in 2020. 

The Kid takes a more conservative approach on Facebook (FB), utilizing a growth rate of 40% per year over the next 5 years. Resulting in approximately $38,693,200 in 2017, $54,170,480 in 2018, $75,838,672 in 2019, and $106,174,140 in 2020.  Moreover, the analysis indicates that Facebook (FB) will earn revenue of $100 billion in 2020 and approximately $148,643,797 by year end 2021.

To sum it all up, the Kid believes Facebook (FB) will accelerate through the $100 billion revenue mark between 2019 and 2020.