LA times just decides to "decided to furlough a number of employees" because "our advertising revenue has nearly been eliminated"[1]. Just wonder if the same thing is gonna happen at digital ads.
If so, I wonder how long can Google/Facebook sustain before starting cutting expenses.<p>Sources:
[1]:https://www.nytimes.com/2020/04/14/business/los-angeles-times-furloughs-cuts.html
You can get some idea of worst-case scenarios from their publicly available financials. Google has $120B in cash [1] and operating expenses of $54B [2]. If they lose <i>all</i> their revenue, they can continue operating for another 2 years. Facebook has $54B in cash [3] and operating expenses of about $33B [4]; they can operate for 1.5 years with no revenue.<p>Their margins are also pretty good. Facebook has profits of $25B on revenues of $70B for about 40% margins [4]. Google has profits of $35B on revenues of $160B for about 20% margins [2]. These are conservative approximations of the rough percentage drop in revenues that they could sustain and still remain profitable. (In actuality, "cost of revenue" tends to go down as revenue does, so both of them could sustain a roughly 50% drop in revenue while remaining profitable.) Note that runway and burn rate have a reciprocal relationship: if these companies sustained the 50% revenue drop mentioned above, they'd still have infinite runway, while if they sustained a 75% drop, they'd have a ~5 year runway.<p>[1] <a href="https://finance.yahoo.com/quote/GOOG/balance-sheet?p=GOOG" rel="nofollow">https://finance.yahoo.com/quote/GOOG/balance-sheet?p=GOOG</a><p>[2] <a href="https://finance.yahoo.com/quote/GOOG/financials?p=GOOG" rel="nofollow">https://finance.yahoo.com/quote/GOOG/financials?p=GOOG</a><p>[3] <a href="https://finance.yahoo.com/quote/FB/balance-sheet?p=FB" rel="nofollow">https://finance.yahoo.com/quote/FB/balance-sheet?p=FB</a><p>[4] <a href="https://finance.yahoo.com/quote/FB/financials?p=FB" rel="nofollow">https://finance.yahoo.com/quote/FB/financials?p=FB</a>
A lot,for me now is almost 0, I made 0.89 cents in 2 weeks on <a href="https://www.colorsandfonts.com" rel="nofollow">https://www.colorsandfonts.com</a> with doigital ads<p>I am using codefund...