Vujade Facebook Series #1

8/2/2019 Vujade Facebook Series #1

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Vujd Ltd. Supporting Forward Thinking Slide |

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toby:VujdLtd.JasperBouwsma

www.vujade.com

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VUJDS FACEBOOK SERIESStartup insights from a truly exciting case

BUSINESS MODEL CANVASWhat does the market expect from facebook when valued at USD100B?Based on a benchmark with Apple and Google.


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Dear viewer

Vujd Ltd. is strongly involved in supporting startups. As a consequence wehave been following the incredible development of facebook in terms of numberof users and according valuations. On February 2nd 2012 facebook filed its FormS-1 for its long anticipated IPO at the US Securities and Exchange Commission.

The SEC documentation provides us with better insights in facebook andprovides some facts after a long period of rumors and interpretations of the

insane growth of an 8-year company valued at a USD100B. With a series ofpresentations Vujd Ltd will look into a number of different startup relatedtopics to explain and illustrate the exciting world of startups and growthcompanies.

In this presentation we will compare facebooks business model, financials andvaluation with the market cap and financials of Apple (a molecule-basedbusiness) and Google (another bits and bytes company). The question being:What does the market expect from facebook when valued at USD100B?Happy sharing!

Jasper Bouwsma

Founder Vujd Ltd. 2


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FOR THIS PRESENTATION VUJD LTD. HAS USED THE BELOW LISTED FORMSFILED TO THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.

EACH FORM FORM PROVIDES INSIGHTS IN THE 2011 REVENUES.


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Revenues 2011(US$ Milion) 108249 3711 37950

+% 2010 +66% +88% +29%

Earnings 25922 1000 11632

Gross Margin 23.9% 26.9% 30.7%

1. APPLE, FACEBOOK AND GOOGLE ARE ALL HIGHLY PROFITABLE.2. FACEBOOK HAS THE STRONGEST YEAR OVER YEAR GROWTH, CLOSELY FOLLOWED

BY APPLE3. FACEBOOK REVENUE MULTIPLES:

1. APPLE = 29X FACEBOOK REVENUE2. GOOGLE = 10X FACEBOOK REVENUE

THE BASIC FINANCIALS

THE CONSEQUENTIAL DRY FACTS:


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Market Cap /Valuation US$5078B US$102.6B US$201,9B

Incorporation April 1st 1976 February 4th 2004 September 4th 1998

Date of IPO December12th1982 May 1st 2012 August 19th 2004

TimeIncorporation - IPO

2446 Days(6Y and 8 M)

3009 Days(8Y and 3M)

2210 Days(6 Years)

Revenue @ IPOEarnings @ IPO

583M61M

3711M1000M

3189M640M

Market Cap postIPO US$1.8B US$100B US$23B

SOME MORE FACTS & FIGURES

VUJDS INTERPRETATION:IF IS ABOUT TIME THAT FACEBOOK DOES ITS IPO1. IN TERMS OF TIME SINCE INCORPORATION2. IN TERMS IF PROFITABILITY


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Price to Sales 3x (4.7x) 27x 7x (5.5x)Price to Earnings (19.7x) 100x (17.3x)

SOME SIMPLE RATIOS

VUJDS INTERPRETATION:IF THE MARKET THINKS THAT FACEBOOK IS WORTH A 27X REVENUE,IT MUST BE BASED ON FUTURE REVENUE AND PROFIT EXPECTATIONS.SO LETS LOOK AT FACEBOOKS BUSINESS MODEL


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FACEBOOK

BUSINESS MODEL

CANVAS


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STATEMENT #112% of total revenues and

80% of payment revenuescome from Zynga.QUESTIONIs that part of thebusiness model indeedscalable?

STATEMENT #2fb makes as muchadvertising revenue asGoogle at their IPO.QUESTIONTo what extent is fb able

to establish and scaletheir advertising business?

STATEMENT #3

fb is still young.QUESTIONWhat does fb have uptheir sleeve and what is itable to do with the cash

generated from the IPO?


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STATEMENT #4currently, 3500 employeeseach generate appr.US$1.0M revenue.QUESTIONA) How can that ratio beimprovedB) How to attract > talent?


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Vujd Ltd. Supporting Forward Thinking Slide |Slide |

#employees 3500 32500

Revenue/Employee 1060286 1167493

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IN THE END IT IS ALL ABOUT ATTRACTING TALENT WHO WILL BE ABLE TOSCALE FACEBOOKS ADVERTISING BUSINESS AND USE THE FACEBOOKS KEYRESOURCE (I.E. 845M USERS, FACEBOOK.COM) TO LAUNCH NEW PRODUCTSAND EXTENT THE BUSINESS MODEL.

CONCLUSION

VUJDS INTERPRETATION:FOR FACEBOOK IT WILL ALL BE ABOUT HIRING THOUSANDS UPON THOUSANDSOF EMPLOYEES TO GENERATE THE REVENUE AND PROFIT THE MARKET SEEMSTO EXPECT.

Just imagine hiring 60000 people in a couple of years


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Vujds facebook series

Billionaires vs. Millionaires

www.vujade.com

#2 SeeourlideShareww.slideshare.net/vujadeAndEnjoy:)Stay Tuned


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Vujd Ltd. Supporting Forward Thinking Slide |Slide |

Vujd Ltd.Postal Address

P.O. Box 4

CH-3257 Grossaffolterm

Visiting Address

Elfenaustrasse 3

CH-2502 Biel/Bienne

+41 (0)31 32 32 300

Online

www.vujade.com

[email protected]

VujadeLtd Photoby:VujdLtdJasp

erBouwsma


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Vu-j-d

Vujd is the opposite of dj-vu and refers to something thathas not yet taken place or has not yet existed.

Looking for new solutions.Critically questioning existing structures and behavior.

Looking at something from a different or an unusual point of view.

In other words: Vujd stands for innovation.

Photo:VujdLtd.SupportingForwardThinking

Photo by: Vujd Ltd Jasper Bouwsma

Documents

Vujade Facebook Series #1