Meta Revenue Breakdown By Region And User Geography

Meta’s Facebook. Img: Pixabay

This article presents Meta Platforms, Inc. (META) revenue by region or by user geography.

According to Meta Platforms, Inc., 2 types of revenue by region or by 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 the location of users.

That said, this article will present 2 types of revenue by region or by user geography as mentioned.

Apart from the revenue numbers that are presented, this article also shows the percentage of revenue by region with respect to the total revenue.

Investors who are interested in Meta’s revenue by business segment may visit this page here – Meta Revenue Breakdown By Segment.

Let’s start with the following topics.

Meta Revenue By Region

Meta revenue breakdown by region

As mentioned, Meta Inc.’s revenue by region can be recognized based on 2 conditions and they are the addresses of customers or locations of users as shown in the diagram above.

While both types of revenues by region are largely different, they are divided into the same regions or countries as shown.

These regions or countries comprise the United States Of America, Canada, Europe, the Asia Pacific, and Rest Of World.

The European region includes Russia and Turkey.

The Rest Of World region includes Africa, Latin America, and the Middle East.

Let’s move on to look at the revenue figures below.

U.S. & Canada Revenue By Address

Meta’s U.S. & Canada revenue by address

For the U.S. and Canada revenue by addresses of customers, the chart above shows that the numbers have been on a rise since 2017 and topped as much as $51.5 billion as of 2021.

Meta’s U.S. and Canada revenue by address increased by 34% in 2021 from 2020.

In 2022, Meta’s U.S. and Canada revenue by address topped $50 billion, slightly lower compared to that of 2021.

While the U.S. and Canada revenue has been on a rise in the last 6 years, the percentage of the North American region revenue to total revenue has been decreasing as shown in the chart.

As seen, Meta’s U.S. and Canada revenue made up only 43.7% of the total revenue in 2021, down more than 3 percentage points from 2017.

This ratio was even lower in 2022, reportedly at only 43%, the lowest percentage in the last 6 years.

U.S. & Canada Revenue By Location

Meta’s U.S. & Canada revenue by location

In terms of revenue based on the location of users, Meta’s U.S. and Canada revenue figures have been slightly higher than the revenue based on the addresses of customers as shown in the chart above.

For example, in 2021, Meta’s U.S. and Canada revenue topped $55.6 billion compared to $51.5 billion reported in the same year for revenue based on the addresses of customers.

Meta’s U.S. and Canada revenue by location increased by 33% in 2021 from 2020.

In 2022, Meta’s U.S. and Canada revenue by location topped $55 billion for the full year but was down slightly from 2021.

Similar to the U.S. and Canada revenue by address, the U.S. and Canada revenue by location also has been on an increase since 2017 and was at its highest as of 2021.

Despite the growing revenue figures, the U.S. and Canada revenue by location has been on a decline with respect to the total revenue.

As seen, the percentage of the U.S. and Canada revenue to the total revenue totaled only 47% in 2021, down 2 percentage points from 2017, and was only 46.8% as of 2022 4Q.

U.S. Revenue By Address

Meta’s U.S. revenue by address

Meta breaks down the North American revenue into the U.S. and Canada.

Let’s first look at the U.S. revenue by address as shown in the chart above.

Meta’s U.S. revenue by address totaled $48 billion in 2021 and $47 billion in 2022.

Meta’s U.S. revenue increased by 34% in 2021 from 2020 but was down 2% in 2022 over 2021.

Despite the growing revenue trend, Meta’s U.S. revenue made up only 41% of the total revenue and the ratio came down to 40.5% in 2022, the lowest ratio in the last 6 years.

In short, Meta’s U.S. revenue to total revenue ratio has been on a decline but the absolute value has been on a rise since 2017.

Canada Revenue By Address

Meta’s Canada revenue by address

Meta’s Canada revenue made up only a small portion of revenue, reportedly at 2.7% in 2021 and 2.5% in 2022.

While Canada revenue by address has been small, the amount has been on a rise since 2017 and totaled $3.2 billion as of 2021.

Meta’s Canada revenue increased by 45% in 2021 year-over-year, one of the best growth rates that has ever been seen.

However, Meta’s revenue based on addresses of customers in Canada was down significantly in 2022, by 7% year-over-year.

Similar to the U.S. revenue, Meta’s Canada revenue percentage to total revenue also has slightly declined since 2017 and the ratio has declined from 3.3% in 2017 to only 2.5% as of 4Q 2022.

Europe Revenue By Address

Meta’s Europe revenue by address

Meta’s Europe revenue by address totaled $29 billion in 2021 and $27 billion in 2022.

Meta’s Europe revenue by address increased by 45% in 2021 over 2020 but declined by 8% in 2022 over 2021, which was quite a significant decrease on a year-on-year basis.

Since 2017, Meta’s Europe revenue also has been on the rise and the ratio to total revenue has reportedly grown to 24.6% in 2021 but declined to 22.9% in 2022.

On a long-term basis, Meta’s Europe revenue by address to total revenue ratio has declined since 2017 from 24.9% to only 22.9% as of Q4 2022.

Europe Revenue By Location

Meta’s Europe revenue by location

Meta’s Europe revenue by location is not much different from the revenue by address as shown in the chart above.

In 2021, Meta’s Europe revenue by location came in at $29 billion while the amount totaled $26 billion in 2022.

Meta’s Europe revenue by location increased by 39% in 2021 from 2020 but was down by a massive 11% in 2022 over 2021.

While Europe’s revenue by location has grown over the years, the ratio to total revenue has remained roughly constant at roughly 24% as seen in the chart above.

However, the percentage of revenue to total revenue decreased to only 22.1% as of 2022 Q4.

On a side note, Meta’s Europe revenue was significantly less than that of the U.S. & Canada and the figure in 2022 was only about 47% of that generated in the North American region.

Asia Pacific Revenue By Address

Meta’s Asia Pacific revenue by address

Meta’s Asia Pacific revenue by address is almost comparable to that generated in the European region.

For example, in 2021, Meta’s Asia Pacific revenue by address topped $26.7 billion, and $27.7 billion in 2022 which was roughly at the same level as that from Europe.

However, Meta’s Asia Pacific revenue by address varies by a very wide margin when compared with revenue based on the locations of users.

Unlike Meta’s revenue generated in North America and Europe, Meta’s Asia Pacific revenue has both increased in terms of absolute value and ratio to total revenue as shown in the chart above.

For example, Meta’s Asia Pacific revenue increased by 35% in 2021 from 2020 and by 4% in 2022 from 2021.

While the ratio to total revenue has slightly declined in 2021 to 22.7%, the ratio has been growing since 2017 and totaled a record high at 23.8% as of 2022, illustrating the growing importance of the Asia Pacific region to the company.

Also, the percentage of the Asia Pacific revenue to total revenue has increased considerably from 19.5% reported in 2017 to as much as 23.8% as of 2022.

Still, Meta’s Asia Pacific revenue was significantly small when compared with that of the North American region.

In terms of percentage, Meta’s Asia Pacific revenue in 2022 was only about 55% or slightly more than half of that generated in the U.S. & Canada.

Asia Pacific Revenue By Location

Meta’s Asia Pacific revenue by location

As mentioned, Meta’s Asia Pacific revenue by location can vary by a very large margin when compared with that by address.

In 2021, Meta’s Asia Pacific revenue by location topped $21.7 billion compared to the $26.7 billion reported in the same year but recognized by address, a massive difference of $5 billion in revenue.

While Meta’s Asia Pacific revenue by location has been smaller, the revenue trend is similar and has been rising since 2017.

Similarly, the ratio of the Asia Pacific revenue to total revenue also has been increasing since 2017 and came in at 18.4% in 2021 and 20.2% as of 2020, the highest ratio that has ever been seen.

Therefore, it does not matter whether Meta’s Asia Pacific revenue is recognized by address or by location, the trend is the same and that is on the rise and the rising trend applies to the ratio to total revenue.

The growing trend of the Asia Pacific revenue to total revenue ratio illustrates the growing importance of the Asia Pacific region for revenue growth for Meta Inc.

Rest Of World Revenue By Address

Meta’s Rest Of World revenue by address

Rest of World revenue includes countries such as Africa, Latin America and the Middle East.

That said, the Rest Of World revenue based on the addresses of users came in at $10.6 billion in 2021 and $12 billion as of 2022.

This particular region generates the least amount of revenue for Meta Platforms, only at 9% and 10% of total revenue in 2021 and 2022, respectively.

While the revenue figure has been small, it has been growing in terms of absolute value and ratio to total revenue.

For example, Meta’s Rest Of World revenue based on addresses of customers increased by 13% in 2022 over 2021 and by more than 200% from 2017.

In terms of the ratio to total revenue, the figures also have been on a rise, hitting 10.3% as of 2022, the highest percentage that has ever been reported.

Rest Of World Revenue By Location

Meta’s Rest Of World revenue by location

Meta’s Rest Of World revenue based on the locations of users has been almost the same as that based on the addresses of customers.

As shown in the chart above, Meta’s Rest Of World revenue based on locations of users came in at $11.6 billion in 2021 while the revenue of $12.7 billion reported in 2022 was even higher, up by 10% from 2021.

From the perspective of ratio, the figures have been on a rise and reached 11% as of 2022, the highest level since 2017.

The growing trend of the revenue and the ratio illustrates the growing importance of this region in revenue contribution for Meta Platforms, Inc.

Conclusion

In conclusion, Meta’s biggest revenue contribution came from the U.S. and Canada, notably at 44% of total revenue in 2021 and 43% as of 2022 based on the addresses of customers.

The U.S. alone contributed 41% of total revenue in 2021 and 40.5% of total revenue in 2022, making it the largest revenue contributor by percentage for Meta Inc.

Europe and the Asia Pacific regions generate about the same portion of revenue for Meta, notably at 23% and 24%, respectively, as of 2022 for revenue based on the addresses of customers.

Meta’s Rest Of World revenue was the least among all the regions and totaled slightly more than $12 billion in 2022 or 10% of total revenue for revenue based on the addresses of customers.

While Meta’s North American and Europe revenue has been on the rise, its percentage of revenue to total revenue has been on a decline.

On the other hand, Meta Inc.’s revenue in the Asia Pacific and Rest Of World regions has been increasing and the percentage of sales to total revenue also has been on a growing trend, illustrating the growing importance of these regions in driving revenue growth in the future.

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.

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