Adam Ostrow has an interesting analysis of the worth of a Facebook Application User in terms of advertising revenue and company valuation, which he has derived through the OTC filings of SNAP Interactive:
SNAP reported $388,000 in revenue for their fourth quarter, which was up from $35,383 in the third. They attribute the growth to their applications: “Are You Interested” finished December with 5.2 million users, while “Meet New People” claims 350,000. Thus, it can be determined that each user was worth about 7 cents in revenue to SNAP in the quarter, or about 28 cents per year (388,000/5,500,000 * 4).
As deals become more common in the Facebook application space, the question becomes how much is a user worth? As a publicly traded company, SNAP is sporting a market value of around $10 million. At its current pace, the company looks to pull in $1.5-$2 million in revenue this year, meaning its price-to-sales ratio is 5:1. If you assume a 5x price-to-sales ratio, that would mean each one of SNAP’s users is actually worth around $1.40 (each user pulls in $0.28/yr, if the company is valued at 5x sales, you arrive a $1.40 per user valuation).