The Numbers Are Out: Facebook's Making a Bundle

In the last few weeks, the press has been flooded with seemingly wild estimates that valued Facebook, which is still private, at around $50 billion. It turns out that those estimates were not so wild after all.

Financial documents sent out to Goldman Sachs clients reveal that Facebook earned $355 million in net income on $1.2 billion in sales during the first nine months of 2010. This is the first time that the general public has had a chance to review the actual sales and earnings numbers for the social network company. The figures were included in documents issued to wealthy Goldman clients looking to buy into a private placement.

Reached for comment, Ryan Jacob, of the Jacob Internet Fund told Reuters that the earnings performance proved to him that Facebook could produce "30 percent to 40 percent, potentially, operating margins," he said, adding that Facebook likely earned a minimum of $500 million last year.

Goldman is investing $450 million in Facebook as part of a deal that allows the bank to sell shares in the company to rich clients willing to buy at least $2 million worth of Facebook stock. Clients have until the end of Friday to decide whether they're in or out.

Separately, the Wall Street Journal, which also received a copy of the financial documents, reports that Facebook will have to start disclosing financial information or hold an IPO by April, 2012. The reason has to do with government regulations governing the fiduciary requirements of companies who breach a critical 500-shareholder limit.