The above graph represents Facebook revenue by segment – Advertising, and Payments and Other Fees, starting from Q2 2010 to the most recent quarter. Facebook’s revenue in fiscal Q2 2019 increased 28% YoY to a whopping $16,886 million ($16.9 billion), worldwide.
- Region: Worldwide
- Source: Facebook Quarterly Reports, SEC Filings
- Last Updated: 29 July 2019
- Note: Facebook financial year – Jan 1 to 31 December
- Graph ID: 122
A majority of Facebook’s revenue still comes from its advertising business. In the second quarter of 2019, a whopping 98.4% of the company’s total revenue came from Advertising. Facebook advertising revenue in Q2 2019 increased nearly 28% YoY to $16,624 million ($16.6 billion). The most important factor driving Facebook advertising revenue growth was the increase in revenue from ads on mobile devices.
Rest $262 million came from Payments & Other Fees. A whopping 36% YoY growth in Payments & Other fees was primarily driven by sales of new products, notably Oculus Quest and Rift S.
In its Q2’19 earnings call transcript, Sheryl Sandberg, COO of Facebook, said that approximately 94% of the company’s total ad revenue came from the Mobile ads.
Facebook Revenue by Segment: History
Surprisingly, in Q4 2018, Facebook revenue from Advertising and Payments & Other Fees, both reached an all-time high. Over 98% of the company’s revenue came from its advertising business. The worldwide advertising revenue of Facebook increased from just $654 million in Q2 2010 to $16.6 billion in Q4 2018. The most important factor driving Facebook’s advertising revenue growth was an increase in revenue from ads on mobile devices.
On the other hand, Facebook’s Payments and Other Fees revenue increased to $274 million in Q4 2018, from $193 in Q4 2017. That’s a whopping 42% YoY growth.
However, this was the first time when Facebook witnessed a record year-over-year increase in its revenue from Payments & other services. It was only Q4 2012 and Q4 2014 when Facebook recorded the highest revenue of $256 million and $257 million from its Payments & other services, respectively. From the beginning of 2015, the company’s non-advertising revenue started declining.
It is also important to note that the contribution of Facebook revenue from Payment & other services to the company’s overall revenue is just 1.62%, as of Q4 2018.
Facebook says, their Payments revenue is comprised of the net fee they receive from developers using the Payments infrastructure and the other fees revenue consists primarily of revenue from the delivery of consumer hardware devices, as well as revenue from various other sources.
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