Meta’s Facebook. Img: Pixabay
This article presents Meta Platforms, Inc. (META) revenue by region or by user geography.
According to Meta Platforms, Inc., two revenue types by region or user geography are presented in the financial reports.
For example, Meta Platforms, Inc. presents a type of revenue that is geographically apportioned based on the company’s estimation of the geographic location of users when they perform a revenue-generating activity.
Another type of revenue by region presented is based on the addresses of customers and is largely different from the revenue geographically apportioned based on user location.
That said, this article presents two revenue types by region or user geography.
Apart from the revenue numbers presented, this article also shows the percentage of revenue by region with respect to the total revenue.
Investors interested in Meta’s revenue by business segment may find more information on this page – Meta Revenue By Product Segment.
Let’s get started!
Please use the table of contents to navigate this page.
Table Of Contents
Definitions And Overview
O2. Overview Of Meta Revenue By Region
O3. How Meta Determines User Location
O4. How Meta Earns Revenue
U.S. And Canada
A1. U.S. & Canada Revenue By Address
A2. U.S. & Canada Revenue By Location
A3. U.S. Revenue By Address
A4. Canada Revenue By Address
Europe
B1. Europe Revenue By Address
B2. Europe Revenue By Location
Asia Pacific
C1. Asia Pacific Revenue By Address
C2. Asia Pacific Revenue By Location
China
Rest Of World
E1. Rest Of World Revenue By Address
E2. Rest Of World Revenue By Location
Conclusion And Reference
S1. Conclusion
S2. References and Credits
S3. Disclosure
Definitions
To help readers understand the content better, the following terms and glossaries have been provided.
Revenue Based On Customer Address: According to Meta’s annual reports, the revenue disaggregated by geography based on customer address is geographically apportioned based on the addresses of the company’s customers.
Revenue Based On User Location: According to Meta’s annual reports, the revenue by user geography comes from the company’s estimate of the geography in which ad impressions are delivered, virtual and digital goods are purchased, or consumer hardware products are shipped.
Overview Of Meta Revenue By Region
Meta revenue breakdown by region
Meta Inc.’s revenue by region or user geography is categorized into two segments: addresses of customers and locations of users, as shown in the diagram above.
The definitions of revenue based on customer address and revenue based on user location are available here: revenue by customer address and revenue by user location.
Meta’s revenue by country includes countries such as the United States Of America, Canada, Europe, the Asia Pacific, China, and Rest Of World.
The European region includes Russia and Turkey. The Rest Of World includes Africa, Latin America, and the Middle East.
The Asia Pacific region includes China.
How Meta Determines Users’ Locations
Meta determines users’ locations through several factors, including the user’s IP address and self-disclosed location. These factors are used to estimate the user’s geographic location, but they may not always accurately reflect the user’s actual location.
Additionally, a user may appear to be accessing Meta from the location of the proxy server that the user connects to rather than from the user’s actual location.
How Meta Earns Revenue
Meta platforms, like Facebook, earn revenue primarily through advertising. Advertisers pay to have their ads shown to users on the platform, and the platform uses data on user behavior and interests to target those ads to specific audiences.
Some platforms may also generate revenue through other means, such as selling virtual goods or offering premium subscriptions.
U.S. & Canada Revenue By Address
Meta’s U.S. & Canada revenue by address
For the U.S. and Canada revenue based on addresses of customers, the figure reached US$52.9 billion as of fiscal 2023, up 5% over 2022 or 2.7% over 2021.
Since 2017, Meta’s U.S. and Canada revenue by customer address has significantly risen. However, it has remained relatively flat between 2021 and 2023.
The revenue percentage of the North American region accounted for 39% of Meta’s total revenue in fiscal 2023, down significantly from 43% in 2022.
In addition, the revenue percentage from the U.S. and Canada has significantly declined since 2017. In 2017, it accounted for almost half of Meta’s total revenue. As of 2023, it accounted for only 45.4%.
U.S. & Canada Revenue By Location
Meta’s U.S. & Canada revenue by location
Based on user location, Meta’s U.S. and Canada revenue figures are much higher than revenue based on customer address.
As of 2023, Meta’s U.S. and Canada revenue by user location topped US$61.2 billion, up 12% over 2022. Percentage-wise, it accounted for a much higher revenue share.
Meta’s U.S. and Canada revenue of US$61.2 billion in the same fiscal year accounted for 45.4% of its total revenue. Despite the much higher revenue ratio, the figures have also significantly declined since 2017, highlighting the considerable revenue growth in other countries and regions.
Meta’s North American revenue by user location shows that there is still revenue growth in the U.S. and Canada based on user activities, which contrasts with revenue based on customer address.
U.S. Revenue By Address
Meta’s U.S. revenue by address
Meta’s U.S. revenue by customer address accounted for 36.9% of the total revenue or US$49.8 billion as of fiscal 2023.
A noticeable trend is that the absolute value of Meta’s U.S. revenue has significantly risen, but the revenue percentage has declined.
Meta’s decreasing U.S. revenue share demonstrates the significant revenue growth in other regions and countries.
On the other hand, Meta’s U.S. revenue by customer address has remained relatively flat between 2021 and 2023, underscoring that revenue growth in the U.S. by customer address may have reached a plateau.
Canada Revenue By Address
Meta’s Canada revenue by address
Meta’s Canada revenue by address accounted for only a small portion of its total revenue, at 2.3% or US$3.1 billion as of 2023.
Like its U.S. revenue, Meta’s Canada revenue share has also significantly declined since 2017, from 3.3% to 2.3% as of 2023, while the absolute value has increased.
The decreasing revenue share in Canada highlights the significant revenue growth in other regions and countries.
Europe Revenue By Address
Meta’s Europe revenue by address
Meta’s Europe revenue by customer address totaled US$31.2 billion and US$26.7 billion in 2023 and 2022, respectively.
These figures contributed 23.1% and 22.9% of Meta’s total revenue in 2023 and 2022, respectively.
Similarly, Meta’s Europe revenue share has declined since 2017, from 24.9% to 23.1% as of 2023.
Europe Revenue By Location
Meta’s Europe revenue by location
Meta’s Europe revenue by user location is not much different from the revenue by customer address, as shown in the chart above.
Meta earned US$30.9 billion and US$25.8 billion in fiscal 2023 and 2022, respectively, in revenue from Europe by user location.
Percentage-wise, the figures have decreased from 24.3% in 2017 to 22.9% as of 2023, indicating much faster revenue growth in other regions and countries.
Asia Pacific Revenue By Address
Meta’s Asia Pacific revenue by address
Meta’s Asia Pacific revenue by customer address topped US$36.2 billion in fiscal 2023, up 30% over 2022, the highest growth rate of all regions and countries.
However, Meta’s Asia Pacific revenue by customer address varies by a considerable degree when compared with revenue based on the location of user.
Unlike North America and Europe, Meta’s Asia Pacific revenue has increased in absolute value and revenue share. The rise of these metrics simultaneously is important because they highlight the growth of the region or country.
That said, Meta’s Asia Pacific revenue share has increased from 19.5% in 2017 to 26.8% as of 2023, while the absolute revenue figures have increased from US$7.9 billion in 2017 to US$36.2 billion as of 2023.
Asia Pacific Revenue By Location
Meta’s Asia Pacific revenue by location
As mentioned, Meta’s Asia Pacific revenue by user location varies by a large margin compared to revenue by customer address.
For example, in fiscal 2023, Meta’s Asia Pacific revenue by user location came in at US$26.9 billion compared with US$36.2 billion for revenue recognized by addresses, a massive difference of US$9 billion.
While Meta’s Asia Pacific revenue by location is much smaller, the revenue trend, which has risen since 2017, is similar.
For instance, the Asia Pacific revenue has risen from US$6.8 billion in 2017 to US$26.9 billion as of 2023, while the ratio has risen from 16.6% to 20.0% during the same period.
Therefore, it does not matter whether the Asia Pacific revenue is recognized by address or location; the trend is the same, which is on the rise. In addition, the rising trend applies to the absolute revenue and revenue ratio.
Meta’s rising Asia Pacific revenue and revenue share in this region illustrates the growing importance of the Asia Pacific as the main growth driver for the company.
China Revenue By Address
China-revenue-by-address
(click image to expand)
Meta disclosed the revenue from China for the first time in 2023. However, only one type of revenue from China was being disclosed: based on customer address.
That said, Meta’s revenue from China based on customer address reached US$13.7 billion as of fiscal 2023, up 85% from US$7.4 billion in 2022.
The 2023 China revenue accounted for as much as 10.1% of Meta’s total revenue in the same year. Besides, this ratio has significantly risen from 6.3% in 2022 to 10.1% in 2023.
Rest Of World Revenue By Address
Meta’s Rest Of World revenue by address
Rest of World includes countries such as Africa, Latin America and the Middle East.
That said, Meta earned US$14.7 billion and US$12.0 billion from the Rest Of World region in fiscal 2023 and 2022, respectively, based on customer address.
This particular region generates the smallest revenue share for Meta Platforms, only at 10.9% and 10.3% in 2023 and 2022, respectively.
Although revenue from Rest Of World is small, it has significantly grown in absolute value and ratio to total revenue, demonstrating the much faster revenue growth rates in this region.
For instance, Meta’s Rest Of World revenue based on customer address has increased by 300% since 2017, while revenue share has increased by two percentage points in the same period.
Rest Of World Revenue By Location
Meta’s Rest Of World revenue by location
Meta’s Rest Of World revenue based on user location is nearly at the same level as that found on customer address.
Meta’s Rest Of World revenue based on user location came in at US$15.9 billion as of 2023, up 25% over 2022. The latest revenue figure comprised 11.8% of Meta’s total revenue, the highest since 2017.
Again, the growing revenue and ratio illustrate the increasing importance of the Rest Of World region as one of Meta Platforms, Inc.’s future growth drivers.
Conclusion
In conclusion, Meta’s largest revenue stream comes from North America, while Europe contributes the second-most highest revenue.
The U.S. alone contributed 37% of sales to Meta’s total revenue in 2023, while China’s figure made up 10.1% in the same period based on revenue by customer address.
Europe and the Asia Pacific generate the same portion of revenue for Meta Platforms, with figures topping 23% and 20%, respectively, in fiscal 2023.
Meta’s revenue from Rest Of World was the among the smallest, at slightly over 10% in fiscal 2023.
While Meta’s North American and European revenue has climbed, their revenue share has declined, indicating slower growth rates than other regions and countries.
On the other hand, Meta’s revenue and revenue share in the Asia Pacific and Rest Of World have soared over time, demonstrating the increasing importance of these regions in driving future revenue growth for the company.
References and Credits
1. Meta Platform, Inc., financial figures are obtained from the company’s annual and quarterly reports, which are available in Meta Investor Relations.
2. Image by Firmbee from Pixabay.
Disclosure
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This article is thought-provoking. Understanding how Meta makes a profit worldwide but does not have registered offices in each region to comply with domestic fiscal laws is fascinating. In other words, the rest of the world offers Meta opportunities to make more money. Still, Meta does not pay back to local communities via taxation to fund schooling and address some social determinants of health. Policymakers from the Third World should investigate this gap. Lastly, I recommend mentioning Africa and Latin America as geographic regions instead of countries. Indeed, Africa has 54 countries, and Latin America has 33.