|Reality Labs (primarily sales of Oculus, now called Meta Quest)||$2.16B|
|Other revenue (payments and fees)||$0.8B|
For most of its life, Facebook relied on advertising revenues to power up its business model.
In the last couple of years, though, the company has been trying to pivot toward the Metaverse.
In October 2021, Facebook rebranded to Meta, showing its interest in developing the Metaverse infrastructure.
Why did it do that?
Multiple reasons. However, let’s see the three main ones:
- Business model threat given by Apple’s privacy changes: in the last couple of years, Apple has been intensifying its privacy policies on the App Store. The latest move was the new opt-in mechanism for users to enable third-party tracking. This dismantled the whole Facebook advertising machine. This forced Facebook to move much more quickly toward its vision for the Metaverse.
- Lack of vertical integration: Unlike Apple or Google, Facebook lacks vertical integration. Indeed, Facebook’s advertising machine primarily relied on third-party tracking over Apple and Android devices to fuel its business model. This has made Facebook prone to attacks from these companies that control the mobile pipelines, which is where most of Facebook’s business relies on. Indeed, today most of Meta’s revenues come from mobile and Instagram. And a simple change in policy by Apple threatened the whole business model of Facebook.
- New entrants: the social media space, which has been dominated by Facebook and Instagram in the last decade, suddenly has seen the rise of new entrants in the previous few years. Among these, TikTok is the one that successfully gained traction and reached over a billion users! This created further pressure on Facebook to move quickly in a new direction, where it could develop a new business ecosystem that it controls to sell its ads.
|2021 vs. 2020|
|N. of ads delivered growth rate||10%|
|Price per ad increase||24%|
|US & Canada||51,541||43.71%|
|Europe (includes Russia, Turkey)||29,057||24.64%|
|Rest of the World (includes Africa, Latin America, and the Middle East)||10,592||8.98%|
|Founders||Mark Zuckerberg, Andrew McCollum, Dustin Moskovitz, Eduardo Saverin, Chris Hughes|
|Year Founded||February 2004, Cambridge, MA|
|Year of IPO||May 18, 2012|
|Market Cap at IPO||$104 Billion|
|Total Revenues at IPO||$3.7 Billion by 2011, prior to the IPO|
|Total Revenues in 2021||$117.9 Billion|
|Changed name||Meta, in October 2021|
|Employees||71,970 employees, globally, as of December 31, 2021|
|Revenues per Employee||$1,642,693.97|
|Who owns Meta?||Mark Zuckerberg is the primary individual shareholder, with 81.7% of Class B shares, and 52.9% of the total voting power|
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