What is the difference between GAAP and Non-GAAP Net Income? Only about 109% if you are Facebook.
The chart below shows the quarterly reported Net Income for the social networking site on a GAAP and non-GAAP basis.
Adding up the quarterly numbers from Q4 2011 until Q4 2013, one gets the following GAAP vs Non-GAAP differential.
Guess which accounting gimmick-based number is FaceBook "valued" on.
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But there is good news: according to FaceBook it now has 201 million Monthly Average Users in the US and Canada.
One may ask - how many people are employed in the US and Canada - the answer 136.9 million in the US and 17.7 million in Canada, or a total of 154.6 million. Oh well, those 50 million who are unemployed - they will just grow into the labor force eventually and be able to buy all those products whose ads they click on.