Skype’s offering document at the SEC contains some interesting financial info, risk factors, etc about the company. Enjoy. [HT G&M]
For example, here is an interesting excerpt that helps understand Skype as an operating business, (emphasis added)
“Many of our products are free. As a result, we have generated nearly all of our historical revenues from our paid communications services products, which are purchased by a small minority of our users. During the three months ended June 30, 2010, we generated on average net revenues from calls made by approximately 8.1 million paying users to landline or mobile phones. These paying users represented less than 7% of our average connected users during this period. If even a small percentage of our paying users cease paying for our products, this could have a significant impact on our net revenues.
In addition, we have historically derived a substantial portion of our net revenues from a single product—SkypeOut. For the pro forma year ended December 31, 2009 and for the six months ended June 30, 2010, 86% and 87% of our pro forma net revenues and net revenues, respectively, were derived from the use of SkypeOut. Due to this dependence on SkypeOut as our primary source of net revenues, we are subject to an elevated risk of reduced demand for our SkypeOut product.”
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Aug 13, 2010 Update: Check out this interesting blog entry, “What the Skype IPO Filing Says About Facebook“.
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