Facebook Inc. (Facebook or ‘the company’)

BUSINESS DESCRIPTION
Facebook Inc. (Facebook or ‘the company’) provides social media and networking websites and
applications that allow users to create profiles and share opinions, ideas, photos, videos, and activities
with friends, family, and businesses worldwide. Facebook owns and operates 17 data centers and offices
in over 80 cities across North America, Latin America, Asia Pacific, Europe, and the Middle East and
Africa.
The company’s product portfolio includes Facebook platform, Instagram, Messenger, WhatsApp, and
Oculus. The Facebook platform, including the website and the mobile app, enables users to share,
discover, communicate, and connect with each other on personal computers and mobile devices.
Facebook platform provides various services include Facebook news feed, shops, marketplace, stories,
groups, news, and watch. Instagram is a mobile app that enables users to take photos or videos,
customize them with filter effects, and share them with friends and followers in a photo feed or send them
directly to friends.
As of December 2020, Facebook’s daily active users (DAUs) were approximately 1.8 billion; mobile
monthly active users (MAU) were 2.8 billion; daily active people (DAP) was nearly 2.6 billion; and monthly
active people (MAP) was 3.30 billion. Instagram offers various services such as Instagram feed, IGTV,
live, stories, reels, shops, and messaging. Messenger is a messaging application for people to connect
with family, friends, businesses, and groups across devices and platforms via video, chat, and Rooms.
WhatsApp is a simple, secure, and reliable messaging application for people and businesses to
communicate and transact in a private way across the world. Oculus Quest offers virtual reality (VR)
software, hardware, and content, and Portal enables families and friends stay connected and share the
moments in meaningful ways.
Facebook classifies its revenue into two categories: Advertising and Other revenue.
The company generates Advertising revenue by displaying ad products on Facebook, Messenger,
Instagram, and mobile applications or third-party affiliated websites. Marketers make payment for ad
products either directly or through relationships with resellers or advertising agencies, based on the
number of clicks taken by users, or the number of impressions delivered. In FY2020, Advertising category
reported revenues of US$84,169 million, which accounted for 97.9% of the company’s revenue.
Facebook’s Other revenue category includes revenue from Facebook Reality Labs (FRL) consumer
hardware devices, and net fees generated from developers using its Payments infrastructure, and also
generates revenue from various other sources. In FY2020, Other revenue category reported revenues of
US$1,796 million, which accounted for 2.1% of the company’s revenue.
Geographically, Facebook classifies its business operations into four regions: the US and Canada,
Europe, Asia-Pacific and Rest of the world. In FY2020, the US and Canada accounted for 44.7% of the
company’s revenue, followed by Europe with 23.7%, Asia-Pacific with 23.1% and Rest of the world with
8.5%.

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