BlackBerryOS.com - Skype Revenue Up 20 Percent To $860M In 2010 - Paid Users Up 19 Percent
  • Skype Revenue Up 20 Percent To $860M In 2010 with Paid Users Up 19 Percent



    As the company prepares for a public offering in the next year, Skype released an updated S-1 filing that includes several new revenue, income and usage numbers.

    Skype acquired mobile video startup Qik in January for $121 million in cash with $29 million in additional payments. As part of the acquisition, Skype added 63 employees from Qik. This can be seen as a move to the growing popularity of video chat in mobile devices.

    In 2010, Skype users made 207 billion minutes of voice and video calls. In the fourth quarter alone, video calls accounted for approximately 42% of all Skype-to-Skype minutes, and in 2010, users sent over 176 million SMS text messages through Skype.

    Another interesting tidbit from the filing - Skype’s primary source of revenue has been from the purchase of credit (on a pay-as-you-go or subscription basis) for the company’s SkypeOut product, which provides calling to landlines and mobile devices.

    Risk factors for the company include the fact that Skype has taken a loss in income in both 2009 and 2010 and may not achieve profitability in the next few years. Profitability, says Skype, will depend on the company’s ability to increase revenue, manage business costs, maintain tax positions and keep up with competitors (Skype specifically calls out Google as a growing competitor with Google Voice).

    This article was originally published in forum thread: Skype Revenue Up 20 Percent To $860M In 2010 - Paid Users Up 19 Percent started by Joseph Jerde View original post


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