Paying users zone. Data is covered by hidden.

  • Get to Facebook Inc. for $19.99, or

  • get to entire website for at least 3 months from $49.99.

Microsoft Excel LibreOffice Calc

Analysis of Revenues

Difficulty: Advanced

Revenue Recognition Accounting Policy

Facebook recognizes revenue once all of the following criteria have been met:

  • persuasive evidence of an arrangement exists;
  • delivery of Facebook’s obligations to the customer has occurred;
  • the price is fixed or determinable; and
  • collectability of the related receivable is reasonably assured.


Advertising revenue is generated by displaying ad products on Facebook, Instagram, Messenger, and third-party affiliated websites or mobile applications. The arrangements are evidenced by either online acceptance of terms and conditions or contracts that stipulate the types of advertising to be delivered, the timing and the pricing. Marketers pay for ad products either directly or through their relationships with advertising agencies, based on the number of impressions delivered or the number of actions, such as clicks, taken by Facebook’s users.

Facebook recognizes revenue from the display of impression-based ads in the contracted period in which the impressions are delivered. Impressions are considered delivered when an ad is displayed to users. Facebook recognizes revenue from the delivery of action-based ads in the period in which a user takes the action the marketer contracted for. For advertising revenue arrangements where Facebook is not the primary obligor, Facebook recognizes revenue on a net basis.

Payments and Other Fees

Payments revenue is comprised of the net fee Facebook receives from developers using the Payments infrastructure.

Other fees revenue, which was not material for all periods presented in Facebook’s financial statements, consists primarily of revenue from the delivery of virtual reality platform devices and various other sources.

Revenue is recognized net of applicable sales and other taxes.

Source: 10-K (filing date: 2018-02-01).

Revenues as Reported

Facebook Inc., Income Statement, Revenues

USD $ in millions

Microsoft Excel LibreOffice Calc
12 months ended Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Advertising hidden hidden hidden hidden hidden
Payments and other fees hidden hidden hidden hidden hidden
Revenue hidden hidden hidden hidden hidden

Based on: 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-01-28), 10-K (filing date: 2015-01-29), 10-K (filing date: 2014-01-31).

Item Description The company
Revenue Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss). Facebook Inc.’s revenue increased from 2015 to 2016 and from 2016 to 2017.