A few years ago, people had started wondering if Skype will ever be able to turn itself around. Now, it seems like Skype is growing above and beyond everybody’s expectations. In a recently filed S-1 statement, Skype revealed that it earned $860 Million of total revenue in year 2010 which translates into a 20% increase from 2009.
The number of total users jumped from 474 Million to 663 Million, and the average monthly paying users increased from 7.3 Million to 8.8 Million. An average paying user generates $97 of net revenue for Skype each year. No matter which statistic you pick up, Skype has witnessed a double digit growth which tells a lot about the success of recent initiatives Skype has been taking. However, the new CEO Tony Bates thinks Skype still needs some more work to do before launching a public offering, that is expected sometime this year.
In terms of usage growth, the total number of voice and video call minutes jumped to a massive 207 billion minutes and the users sent over 176 million text messages using Skype last year. As always, the growth in business also meant growth in human capital, with the number of employees increasing to 911, up from 733 in 2009. A good number of those, 63 to be exact, are Qik employees that joined when Skype acquired Qik earlier this year for $121 Million.
However, the almost $900 million that Skype earned last year was still just revenue and does not represent any net income. Skype still has to do a lot more to achieve profitability in the current year.