Foursquare Vastly Improves on Last Year’s Revenue
Influential figures in digital marketing have been making a series of predictions about Foursquare will come to make money from its user base and dataset. This week, interesting new figures were released, confirming that Foursquare is enjoying a period of monetary growth. A leading investor at Foursquare, Ben Horowitz said in a Fast Company profile that the company had already generated four times as much revenue as it had brought in last year by the end of Q2. This means that Foursquare’s top line is now on a run rate of between $15 million and $20 million.
An Untenable Position?
Foursquare only generated $2 million in revenue during 2012, meaning that several figures have predicted that the company may break even and generate worthwhile profits as time passes by. The company employs 160 members of staff, and it’s been estimated that each employee costs the company around $100,000 a year. However, others have said that because the company has bases in both San Francisco and New York, a more accurate estimate would come in at around $150,000 per staff member once overheads are considered.
Cash for Conversions
Once these figures are added up, it would still seem that the company will fail to break even in 2013. Once its money runs out, it’s predicted that the brand will need to secure funding from an array of private investors and public markets. Other possibilities for revenue-generation include charging merchants when conversions are made or actions are taken. Many commentators are surprised that the service has lasted this long, and it has been a long-term aim of Foursquare to prove that it can raise the revenue that it has been enjoying in 2013. Nonetheless, its future still seems uncertain according to various analysts and experts.