Facebook Geographic Mix

Facebook’s Geographic Mix of Revenue and Users

While Facebook’s users are distributed relatively evenly around the world, it relies heavily on the U.S., Canada and Europe for its revenue.  Three-fourths of the company’s revenue comes from these three regions even though they account for just over 40% of its daily active users.  This leads to a wide disparity in revenue per user, ranging from $1.53 in Africa and Latin America to $11.87 in the U.S. and Canada.  Do you think the company is viewing this as a problem or an opportunity?  See the chart below for more details:

Facebook Geographic Mix

 

With a 100% stacked bar chart, you can show two different measures (e.g., daily active users and revenue) across the same categorical dimension (e.g., geography).  This is a good way to identify differences in these measures and opportunities for growth.  In this example, Facebook can apply the revenue generation methods its using in the U.S. to other regions.  Alternatively, an analyst can use this chart to show that while Facebook has room for user growth outside the U.S., its revenue growth opportunity might be more limited.  The data for the charts comes from Facebook’s Q4 2014 results.

I used the data column feature in Mekko Graphics to place the revenue per user data to the right of the last bar and have the numbers align with the series in the last bar.  I created a second data column that contains the names of the regions.  I then hid the Y axis and moved this data column to the left of the first bar.  I used the align middle button to align each region to the corresponding value in the first bar.  Finally, I introduced a feature that I’m testing.  The segments contain both the value and the percentage.  This capability will be available for you in the next release of Mekko Graphics.

Here’s the chart in SlideShare: