How Facebook’s International Business Is Looking

The US (SPY) accounts for the greatest portion of Facebook’s revenues with more than 49% of overall revenue in the latest quarter coming from the US and Canada. However, closer examination reveals the rising profile of Facebook’s international operations as top-line contributors.

In 2Q17, Facebook generated $4.7 billion in revenue outside the US and Canada. The company’s overall revenue in the quarter was $9.3 billion, up 45% from a year earlier.

Facebook reports its international operations in three divisions: Europe (EFA), APAC (Asia-Pacific), and ROW (Rest of World). Europe is the largest revenue contributor among these geographies. Facebook booked $2.2 billion in revenue in Europe in 2Q17, up from less than $1.6 billion a year earlier. APAC revenue was $1.6 billion compared with $1.0 billion a year ago, and ROW revenue was $954 million, up from $614 million a year ago.

Consistent with the US, advertising comprises the bulk of Facebook’s international sales. Facebook said its ad business in Europe rose 43% in 2Q17, while APAC and ROW ad revenues rose 54% and 56%, respectively, which shows that Facebook’s ad business is growing more rapidly in APAC and ROW compared to the US and Canada, where ad revenue growth was 45%. Overall, Facebook’s advertising revenue rose 47%. The above chart shows Facebook’s ad revenues by geography.

Facebook’s payments operation is yet to establish roots abroad. The company generated payments and other fees revenue of $157 million in 2Q17 with just $51 million coming from overseas regions.