Facebook passes major user, financial milestones

Social network gains 300 millionth user, claims it's 'cash flow positive' ahead of plan

It's been a good day for Facebook.

The social networking giant announced late this afternoon that it had grabbed its 300 millionth user and claimed that it has become "cash flow positive" months ahead of expectations.

In a blog post, Facebook CEO Mark Zuckerberg said the company had expected to become cash flow positive -- reaching a point where noninvestment revenues cover the cash it spends on capital expenditures -- sometime in 2010.

"This is important to us because it sets Facebook up to be a strong independent service for the long term," wrote Zuckerberg. "Over time, Facebook will continue to be as strong as all of the connections you make."

A Facebook spokeswoman wouldn't say when the company expects to reach profitability. In May, investment firm Digital Sky Technologies paid $200 million for a 1.96% equity stake in Facebook.

Facebook announced in July that it had hit the 250-millionth-user milestone, just three months after signing up its 200 millionth user.

"As of today, Facebook now serves 300 million people across the world," wrote Zuckerberg. "It's a large number, but the way we think about this is that we're just getting started on our goal of connecting everyone. We thank all of you for helping us reach the point where we are connecting 300 million people."

Juan Carlos Perez of the IDG News Service contributed to this story.

Copyright © 2009 IDG Communications, Inc.

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