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Does Revenue Grow Per User?

Written on July 24, 2009

In an interview with Newsweek’s Dan Lyons, Mark Zuckerberg puts forth an interesting theory:

But in reality, more users means more revenue. As we grow, we will become increasingly profitable.

We can’t help but wonder- is this currently true? Or is this equation based on future revenues and possible profitability internationally? It seems clear that Facebook falls victim to the thinking around YouTube- that monetization becomes more difficult with increased costs and, in fact, every new user eats into revenue, preventing profit.

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