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FB Meta Platforms

Participants
Deborah Crawford Vice President, Investor Relations
Mark Zuckerberg Founder, Chairman and Chief Executive Officer
Sheryl Sandberg Chief Operating Officer
Dave Wehner Chief Financial Officer
Doug Anmuth JPMorgan
Justin Post Bank of America Merrill Lynch
Eric Sheridan UBS
Brian Nowak Morgan Stanley
Mark Mahaney RBC Capital Markets
Lloyd Walmsley Deutsche Bank
Youssef Squali SunTrust
Ross Sandler Barclays
Heather Bellini Goldman Sachs
Colin Sebastian Baird
Michael Nathanson Moffett Nathanson
Call transcript
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Operator

Good afternoon, my name is Mike and I will be your conference operator today. At this time, I would like to welcome everyone to the Facebook Third Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] This call will be recorded. much. very you Thank Ms. Vice Investor Facebooks’s begin. you President Crawford, Relations, and may Deborah

Deborah Crawford

you. to conference welcome afternoon third Thank and earnings Facebook's Good quarter XXXX call.

CEO; to are Dave today our CFO. Sheryl Zuckerberg, Wehner, me and Sandberg, Joining COO discuss Mark results

to from Before to this these those today include contemplated remind would results Actual statements. remarks opportunity forward-looking our by take statements. we that may I get will started, like you differ forward-looking materially

in today's our to results future report differ are a press these release filed cause no in of and we events. make XX-Q Any could information that Form are on Factors SEC. as this of result new as obligation we forward-looking quarterly today assumptions that set on undertake materially update the to call or statements forth with on and based statements these

an During GAAP today's this reconciliation press press A GAAP call included both at available in investor.fb.com. is and present investor we financial The earnings and measures. non-GAAP on our may accompanying to release. presentation website measures are non-GAAP of release

And like to to I'd call the Mark. over turn now,

Mark Zuckerberg

Thank all All Deborah. you Thanks, for today. joining right. us

everything six is we and Board to has I get talk Desmond-Hellmann to the she be years personally we wonderful and done other that a for Before been has our just her Sue for that I'm leaving on want announcement our health on Board to shared Sue for focus about this and started, going commitments. grateful voice Company. thoughtful deeply

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Oculus We and for Oculus also hand-tracking released Link. technology

your now basically a too. is So Rift Quest

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these our of business. happy more and in any I'm talk here to now to the about about talk Sheryl things is Q&A

Sheryl Sandberg

all both everyone. We performance the keep Thanks, help responsibility to continue people very Instagram. working commitment strong saw Mark, who hard and have use approximately and Mobile month. for strong the a our to know billion, of ad ad of platforms total a Facebook We're in sizes grow. innovating was XX% every all important revenue XXX business. It our and billions year-over-year demonstrate million people our of we safe to businesses and and to businesses $XX.X regions hi grew revenue. on quarter and we contributing XX% was revenue Ad

about to some we're of safe. people keep I start by want the to place putting in talking protections

disrupt political their As social about Mark arbiters advertising to before understand this strengthen on remove information. vote authorized ads issues, people networks are get transparent only influence than started and else. to see In to running. truth ask becoming said, empowering them. ourselves we without more for the safe. or political keeping find stop is requirements politics And those making a technology actors, We're we requiring who people quarter even year XXXX to fake we bad content elections can away. to of anywhere Helping them and of before trying Facebook and also critical so more people that continuing accounts people invest in and elections is We're XXXX, that

protecting to higher Workers ourselves an Fair discrimination holding Alliance, Housing Communication employment Earlier it standard important when also National others the restrict a people year housing, Facebook. We're we and targeting the settlement to and with this comes from on reached ads. to for America of credit options the ACLU,

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channel XX days, Instagram span XXX was For example, Tokyo. over to the French automaker limited directly their only drive click to and Renault of of XX used a sales Messenger. vehicle, Messenger combination Facebook a stories Captur cars, edition ads advertising sold and the through of they

added we in to quarter feature businesses some conversation. a and of This stories so stories then click continue grab Messenger can the attention in the

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help surveyed users XX% brand. a they've created To we small According experiment beta quarter. experience advertisers in say reality Internet a the augmented by of this, an this launched test tried to eMarketer, US with

brand, lipstick test, of up an on in give people to Italian make we their they cosmetics lift saw way different try used and a the shades to purchases. easy part ads an XX% of As

years sellers While shop. an we ago platform reach we're day. nearly people the still regions and discover, seeing opportunity and now of people people advertisers interactions Take are love they easier it and to XXX discover very between and it used an is where every commerce millions opportunity buyers this an to days, have as launched to across Marketplace three vehicles, things have they furniture From to We early the our example. Facebook sell browse, making month platform. for buy in

saying also growth Company around our close Dave. give Facebook I and and to want partners grow. grateful the are them the our that to social making the Internet progress how driving how valuable us and Thanks thank and world am teams is committed to our to feedback and issues want I responsibilities everyone on the deeply businesses. to deliver by here we on facing continue better major for help I can who

Dave Wehner

everyone. afternoon Thanks, Sheryl, and good

with led community monthly users Philippines. active X.XX XX% quarter, and metrics. users with approximately me the Community This billion reached We active were X% our to up last growth by growth in of Let of this X.XX begin daily year Indonesia the India, Facebook billion, pleased compared in September. represents the the

MAUs grew regions, XXX We're or trends last the X% million pleased year. US and compared to Canada. growth all with the including in

around September in continue on were we active people monthly at a metrics, a Family our that use of basis X.X average daily estimate billion and least billion apps on and basis. of terms In grow one our around X.X on to

more metrics As across people using role than and a fact de-duplicated the and better in Over Facebook, time, We one believe Instagram, of are community anticipate the we services. size Family will are we reflect and the that the play about of of many numbers our audience best estimate how WhatsApp. primary these our metrics Family our Company. reminder, Messenger talk our disclosures that the

comparisons financials. $XX.X Turning total basis to revenue XX% billion, up now All the unless QX, on basis. a currency noted. constant otherwise a or was XX% are year-over-year on

saw As foreign approximately currency the a have versus XXXX, constant quarter growth in of Had deceleration been exchange constant the rates total would second revenue with quarter. third expected, $XXX our revenue million remained higher. we

billion, $XX.X or up on was constant a revenue currency ad total QX XX% XX% basis.

America Rest ad product lift more and of from benefited and environment APAC regional favorable APAC and of compared in weaker Europe of the growth, were recent World trends macroeconomic North of our World to respectively. Rest from XX%, XX% grew a XX% XX%, In last respectively. got revenue of and while strongest grew revenue terms year. and optimizations QX

decreased ads in shift ads driven by sales driven the by Payments our XX% geographies $XXX and number the decline which of primarily Impression ad mix growth million, up ad notably, was across and monetize was and Instagram price primarily driven per Quest. price ongoing Stories other served on XX%. growth services primarily towards new increased by and lower average QX, This was year-over-year rate. Oculus News average per year-over-year ad revenue fees of the at Stories was feed. Facebook Feed, Instagram X%. In The impressions products,

XX% We $XX.X $X.X now XX,XXX to operating employees, total XX%. QX up margin. were income expenses, representing approximately full-time up was Operating XX%. billion, with a Turning expenses ended billion,

generated was tax $X.XX XX%. Our investments office rate We $X.X ended by billion QX, data were quarter infrastructure $XX.X billion $X.X approximately QX A income billion expenditures and we billion and stock. investments. in billion servers, free facilities. driven ongoing $X.X the and in share. approximately flow or bought cash Capital $X.X per In back Net was Class centers, in of our with common cash network

to revenue now outlook. Turning the

QX. I quarter second As continue of to more growth in deceleration rate we on our a our call, indicated pronounced revenue expect

our expect by revenue well in QX, QX several reported are to rate by mid factors of successful single-digit targeting be product QX rate would we largely pronounced. in our Since QX largely the driven compared the QX deceleration optimizations percentage XXXX growth to unique less as headwinds. revenue rate. of We last lapping decelerate to these versus is This to ad much year, as will related high expect growth our deceleration

approximately for expense to XXXX We the anticipate billion. this basis $XX to the outlook dollar $XX Turning a are announced be total Due year, expense expenses additional providing clarity. will our FTC billion we XXXX settlement outlook. now to on earlier

the FTC a recorded to reminder, includes this half of our in billion in As XXXX related accruals range settlement. $X we first

approximately capital our $XX $XX of expenditures estimate We billion billion $XX expect be will compared prior XXXX to billion. to

and primarily by data Our servers infrastructure. driven our capital investments in network are ongoing expenditures centers,

Turning now tax. to

I'd of XXXX share in range our billion expenses QX range be to XXXX will We anticipate to will XX%. to total the tax the our of initial expect be our also XX% billion. on $XX expenses. We outlook like rate that in $XX

expenses well marketing factors into Our in as like non-headcount growth related headcount as this plan to guidance. re-accelerate growth

our approximately We office centers, XXXX investments by will facilities network and infrastructure. expect driven billion $XX $XX in be to expenditures that servers, billion capital data

in we anticipate XX%. effective tax our XX% of be the XXXX range rate Lastly, to will

strong was Facebook. QX summary, In a quarter for

growth investments in to important We our time, community are areas the we and the business. continued with pleased same make momentum in innovation. our continue safety of and like At privacy, ads

the With for that, call open up operator, questions. let's

Operator

will JPMorgan. comes the We question-and-answer from Your a Anmuth line the [Operator now from of question for lines session. open Doug Instructions] first

Doug Anmuth

Thanks question. for taking the

you're a the Dave, you you're off, help thinking deeper last also considering XQ ad targeting can just from talk decel, didn't just the to as into on up seem bit and How understand about they you're product little expanding the you here. that Shopping. XQ us numbers about that Mark, more initiative improvements that revenue And year ramping how the that's then then, how in you're show headwinds that the lapping. much. of about First Instagram XQ can And going on thinking Thanks. some just just

Dave Wehner

it's of ad Hey, impact product Yes, lapping ad also I increase couple the on how an made stories. feed IG in a which on Dave. Doug, operates, different the We cite load we QX a as an and and have and are optimizations outlook, can would auction those optimizations. few that

to I that largely And so, are XXXX pronounced. QX And revenue given deceleration related. noted, expect less we would are much as factors that that these

in continuing addition, the uncertainties. I to in targeting related we go longer factors to over And to continue the do landscape term, headwinds I back evolve. in is ad regulatory and cited QX, to just that then the three past And face and that expect the

they So GDPR us for allowing and websites saw for out context we to targeting. effect, people ad into who use example, the visited opted from when of number came a on apps

OSA oriented data towards the are that on rolling then make And of own launch what Facebook targeting second just then are as our control activity. and such platforms which and on we're changes proposed out changes privacy the we measurement difficult. more the stored from affect is And factor product could more our that recent seeing mobile that's finally, user

than comes to majority this, is the factors us. loss three in it the when So behind potential factor of us of I'd in. And front I'd those rather still say signal say still

I into our and as those So headwinds think that and outlook still are factors there out real well.

Sheryl Sandberg

is Instagram improve is We following are still I'll a business. shopping very take opportunity on a product XX% XX% -- because of more there here users big Shopping long think the But the over it than the Instagram run itself, question. we're it's early QX and testing business' can days We product can page see product working shoppers description ad, quite small. shopping the idea to and from mobile started that purchase in on the tap site. the a ads, and

Again, we very think but interesting product, nascent.

go overall is discover, more of commerce make all and Our Instagram and to but people sell. goal efforts browse, our across and and business not properties, convenient Facebook and our secure it accessible buy to just and for

we and been business. good and have that's our we for we that place to great browse and great, future. for be well for the But can close to drive and think to a reduce loop, a for foreseeable of opportunity and people majority the discover. people continues help That think friction business great our people I continue as

Operator

Your comes Bank the from question next Justin from America Merrill of Post line Lynch. of

Justin Post

Great, for and thank for Mark one Maybe you. Dave. one

you And the growth adding contributing be give revenues you you. the start could accelerating. headcount mentioned you'll areas us then where Watch, it's of it the Could going whether and overall headcount Can some your next usage year. professional launches, strategy on is the of content OTT all talk tab you with what interesting. your Watch about of First kind forward. Dave, and Thank

Mark Zuckerberg

valuable don't overall to would any to bit. rolled but share out for very status we I'm a we talk really for first retentive new little on and just be sure to people. I make have happy almost year I tab the think we it -- the that Watch mean were about tuning it for this,

-- in general that not to a they're useful to going try we to and put times once, think they the way we back this to of it want of and kind it something lot of want front we use confident and lot in unless multiple is, find of people we're front wait things stuff we So try until people it are about things of useful. but not retentive put to in come and a can are

growing it. to we're continuing So to now to make continuing Watch, -- of well it's is kind on there and it still that we so got focused grow and better on

that I people of premium first yes, tent The that content almost as people is some try think good There part about content right the for pole help are this out pieces time. to the the marketing it, way of think the content love as they and to tab a much then other that experience stay they about and not for valuable there the really lot they out that come be talked in the check might to that's news. and product of in

So, I that's think about that. way the think to right

Dave Wehner

Hey, Dave. it's Justin,

and the XXXX cost is also that years revenue. outlook, through last includes infrastructure the flowing On expense build factor expense sort around growth growth and depreciation a as of of over seeing big headcount other well. We're several that large CapEx

the a growth of well. driver that's as So

reaccelerate that's in hiring We to to important the be are really priorities accelerate and planning of the going on Company. XXXX focused or

security our investments. includes safety that privacy, and So

to settlement. also building investing the working are we the a related So lot in on FTC complying with products privacy and

in heavily improve investments. innovation building to new continuing developing continuing like includes our around And Facebook and products but invest then and areas Instagram in also AR/VR. to That we're those

the factors growth. on So depend of ultimately those ROI marketing then planning are big related play in will investments non-headcount on like those well over time. are how out that And as expenses we and growing

Operator

from comes from question of line next Eric UBS. Your Sheridan the

Eric Sheridan

two, the Maybe for Thanks I taking can. if question.

much. in saw why color things that you single-digit give going color of rates optimizations give regions to out high world accelerated. those can tougher product had a you comps guide, is on in QX quarter just how a World might on Rest where different and and might impacted additional so have the the deceleration of growth bit we You play of have of Any those global QX to of us there so be against gave Europe sort little of on the seeing a of understanding better Asia scale. could you the or the levels those impacted or regions. on mid some us the might Thanks color the of And any be US you and

Dave Wehner

of Thanks, some we in that in that unlocked like color changes let there, quarter. some nature specific balance and and of of in but product the Eric. growth some thing it benefited as the load how just One more We're areas I and those would that some we regional impact had not it's breaking internal ad the house around promotion acceleration Rest spend of did me markets. the sort out and lower from a give World cite impact, and made we you ARPU the the APAC. countries units optimizations in APAC manage use impression internal pronounced in our more of of

that was of Brazil particularly then factors. And weak QX. the was one last So

So compare a good a had macroeconomic basis. on that

of that to the product shorter a but not there. the to overall given specifically terms it's into would In in I we're I QX late Thanksgiving, think were holiday In play anything optimizations have comping season, global changes. hard know going say US, how just against of will arrival guide, the that's QX we the it

the regions. I think all So impact we're deceleration see going to

Operator

Nowak Brian Morgan next Your line from of from Stanley. comes question the

Brian Nowak

I two. Thanks for taking question. my have

And see would had hear you particular in it products come. a I engagement in have almost Mark, about guess seeing We the the specific DAU curious Big driving the The of Facebook types one, first you're on quarter -- or products changes US can behavior them to on any second to call is We the and mentioned Canada. strong in that monetization so numbers. Blue. really or many app stronger be you

and IGTV You and and Discover. talked commerce about Stories

sort sort we are the as excited think one two Thanks. of to these, most of those of of about the you XXXX? or into timing drive business which Just about

Mark Zuckerberg

bunch Facebook we and take on core say the think improvements can I US, good I engagement. app. the first would video. engagement Yes, in one different it the we It's more which places In especially saw was around video US, around think outside improvements. the a of feed I -- I globally made less

we which are seeing So highly But of good. bunch we're and penetrated think good in engagement and Canada. bunch course the different in from of it's US the a US, I cohorts of is a factors

around. expect bounce would that we So to

saw So growth I we this great quarter. think

penetrated. We are quite

that opportunities, -- speak monetization and add of to Sheryl you like and terms would would I add color Mark well. Obviously if color as can like. can In to

us give So, to buying I driver. opportunities be areas from it Stories We're big also Instagram into and big XXXX. is is We're going are product continues of monetizing Explore and with jump then Sheryl obviously in to seeing going a growing around one more for some the additional color. now advertisers think and and that

Sheryl Sandberg

a the people We've to That's what success I of remembering helped doing Yes, well. and a core feed it's we that products our are Instagram mobile part advertising think that weren't our nicely of in had I really Facebook and terms Definitely, lot to big are. already growing where think success. products a happened continue core for growth. and is we And with opportunity there. worth get Stories lot People really and advertisers growth, moving of them mobile ads. of ads see

like right help I think the formats advertisers and to experience we've quickly new how taken to more our Stories. that migrate do able been to even in places on

learned X advertisers, we because and help And of Facebook, more than we think million Stories. already have Instagram have a advertising that So them do lot to I X that's our we move. to across million Messenger

once. buy just convert which and and advertisers ads default Facebook, So all Stories Instagram customizable automatic this launched for format resources. Messenger templates, time templates example, We which at your vertical Stories across help save had can into feed quarter now we you and

easy, advertisers have move, easy. easy, make really those we help really formats as we've measurement in to buying really to how investments the the So the making learned

monetize News right mix a the us. opportunity Feed same as now. still the rate is for at big does Stories Now, a Stories to

keeping long quarter. that. able an something the growth on is But eye to ability people help that to exciting. is out we're And So, quarter think the we're run prove over migrate pretty our over I

Operator

Your comes Mark Capital from line of next the Markets. from RBC question Mahaney

Mark Mahaney

you the who And add Thank you. particularly or want that gap, you closing. could what Board talk extent it's Mark, to to the then, the would to it's voice helpful to Company the would that rate in Board you which closing of you to at now. David, what Stories for would about be want add monetization sort

Dave Wehner

first monetization Mark the the I second. and give Stories can take gap

monetization a that we So in as on feed what well. growth. the product to price. pressure terms I have of seen that, auction experiencing is, is impression growth good Stories lot continuing with puts that And of product think the also that's growth impression high whenever that's see we've we're a experiencing a on on And side impression

impressions about first. from noted the listed I the of you growth, if I drivers So when Facebook feed talked impression in commentary

So also showing growth. I good that's think

the overall overall in Stories the future. think story the and change for the a growth there So gap remain I'd for is say not will and story impression we the really big near

an So revenue be that but revenue story, price-driven growth will a story. rather impression growth not growth,

Mark Zuckerberg

of leaders incredible a Yes, different regulatory scaling social issues perspectives great issues important. different It's oversight a issues provide sure from the who we're and technological make and people on who We to good lot face that Board, Board. on lot an of have advice can that very on and benefit help range our our course serve hard doing major served really really having problems is or a of large Company. Board to to wide and both here job members, organizations us of a are been there now navigate running

grateful, has here. to it lot shape Board an and just did and what do want of to a go I And time, see one helped really our more just on sad I'm we really I'm job incredibly to Sue perfect her she amazing add mentioned and

Operator

from next comes question of the Your Lloyd Deutsche line from Walmsley Bank.

Lloyd Walmsley

questions, Two if can. I Thanks.

that out bit in you markets. rolled the First earlier this a you OFA mentioned quarter few just little feature a

user be disclosed can inventory now targeting response expanding early into markets. on you seeing what you've of a terms impacting search. may ad And query how So to you're in search volumes, more us kind of secondly, this, give you're then daily in it those of sense occasion

an ad then we time over should if platform on Thanks. should coverage wondering searches query about of about the how today us search and how volumes searches people I'm think are ramping that. you can updated within and So the sense think give we given a of lot

Dave Wehner

those. Sure, I'll take

roll it we'll seen to be the August rolling through and several a we'll that We've I positive it's out In out terms gets doing of the and and picked it. slowly And reception about basis. year. a out roll percentage in adoption months share to too continuing think globally been up having that over on this the we to adopted. globally feature that of launched next the to we've we're time end initially that kind and as early But see that share have just much over an of really option. early It's gets how how too to OFA

related people, are search in of FB terms really of results. for In in on ads the showing topics searches retailer e-commerce. Facebook vast majority Marketplace we But not search, are to

So, early point. it's revenue it's And from a days. material perspective, very this not at

Operator

Your comes next the Youssef of line Squali from from question SunTrust.

Youssef Squali

And potential now there is from from we're Thank seems gating more Mark, to feel $XXX longer you than vision the now do in me your factors Two you lot that seems Can like acceleration out your CCPA how impacted materialize. inform be expected an a has to then taken does Thank potentially in to much. very you about that over old, and Quest that there a XXXX. with there, a adoption. going to the year speak as and at VR, bit questions see content to your relative you. how expectations own well. impacts it and has it GDPR business your on views

Dave Wehner

I'll the question. Youssef, take

to and I relative opting adoptions us who the how We've out of allowing think apps. seen GDPR context it around about to from that's people gone are use expectations. was

we less impact us. the largely ads And the the they of of obviously ads. experience expectations both, so will who quality that get opting the in And it within say the are seeing saw and also people think, and relevant is terms of was having range impact for monetization I I'd that that an and out the are

So of expected. we out playing as I think that is kind

CCPA, I work think in is progress. still a

to that that watching that develops. how but different factor we Privacy has many So we're watching line. on the we'll provisions similar have evolves, the to it's to how closely. that going we're a but and a think That's closely GDPR, Consumer watch that to California see just We're have that's do developments that and Act,

question I think, Oculus. Mark, was on

Mark Zuckerberg

then And add just also on Sure. privacy. something

sure terms there get think there I aren't want and that important able different that encodes very principles lot to keep operate, of that XX important especially make is regulatory started privacy competitive, to for order businesses in GDPR that to think we be and needed the a legislation. federal the very handle of a it's market you starts frameworks of just mean, I to we a I be to, rules could lot it big follow. set market company. we're if in to would a But at level privacy. the if on had need for companies better we federal clear overall,

can to help continue there. we'll to folks try what we So to try to to work with do

be On I'm reasons optimistic, the thought and we're VR that going important a and taking to we why long-term unchanged. thought. bit AR, you're vision -- I And still is think longer this right. This the and than I are big

we're products little Obviously, the people think going and that that both than it's get ways. these cuts there. I that fact a thought, them use longer because it we're of So we lot love a and still seeing of to taking

because the means On gets and it that out for course few the more a a years it that be of might hand, one further until be funding might future we'll this there. bit that develop expensive be to longer

done the we're But perspective, hand, operating built or company other a on our kind traditionally from of hardware that's systems or these not products.

off it. just to a really products we can to going Oculus of people think and to that that better and with we're year terms in every we the space, best using of brand building ready around that completely this millions So mainstream get is of be our when in this better hundreds get practice be I build thing

Quest that right doing well. and You're quite is growing

the and future. can demand we as we're make strong up pick starting fast content some stuff the very has quality side as quite good. think I that AAA, them the about the excited to is optimistic is and been selling I'm are [indiscernible] them, very the seeing on high really both We of what about and

Operator

Barclays. from Ross of question comes line Sandler the next from Your

Ross Sandler

Great.

for outlook, modest So deceleration. XXXX guys, on the question a just more a rev calling

the XXXX So, the now these in and seeing acceleration VC the of companies this some coming Dave, I might the Is in headwinds, or back would on other material potentially factor? of next that in a plans. some the funding of of things some both stage is function drawing had lapping a late some guess some innovations what there like Is tailwinds deceleration? impression of you you're that those headwinds that their of for the are marketing are you've 'XX year? cause market What that see on

constant then single-digit is, you. to high the decel rate growth one dollar to rate US reported question mid that referring housekeeping or that is you're is expecting that growth decel, FX XQ And the Thank from?

Dave Wehner

think Ross. to on It's a sure, don't should digit that on, huge it rate. difference deceleration number Yes, basis. a high-single giving growth in on a be a the them, there I reported mid we're from but giving reported reported we're that

potential in products which of more like slowly, that ad front would been we rolling out The these potential is us. regulatory front us. but and it out targeting have we deceleration, for believe, the playing the XXXX, that now. loss the we're So the three see continue deceleration. deceleration to the our majority expect OFA landscape, on do that related targeting just of platform then in we expect own in to of think changes reasons terms but continue of of signal We still I into And that's still we moderated be, that, adoption the and are factors cited, headwinds,

lapping into growing made a large off we've in in So XXXX. good all where improvements we're a been deceleration Obviously, of base. potential will product those XXXX of the revenue lot and of performance play growth what's

level signing the that deceleration significant. I are which perspective. specific from specific were into optimizations experiencing lapping more in we of deceleration of high QX, we're going we're think that The sort So QX,

Operator

comes Sachs. Goldman from Bellini Heather question line the of next from Your

Heather Bellini

Great. to about I to opening just back people. wanted remarks the XX,XXX go the

think I you mentioned you said that you budget more back in for XXXX. that than you your on is I spending was think it when more, went and safety public area you're have this working is

potentially the if was you're just view I billion. on resource-intensive $X us user you about past have perspective leverage to you helping more this as AI as to technologies maybe existing or continues don't continue base to see talked like wondering a over How being long do maybe your this here. quickly Thank much about get to as out how you engagement your using, from so you does you with be So, and people AI to ability have the could in as time ramp helpful share with of budget, it grow. you.

Mark Zuckerberg

Sure.

don't content as looking what of general it And what for lot AI are time human have over is doing comes people we for cost use that good foresee to ramp nuanced have which going make judgments. that is to quickly we computers to I in for quick but not it what So making the at judgments. teams is a and the any much, they're do very we people making is time may we near which down. have of In if future and good AI to

this. just to people anytime then that change content a that's flowing And looking and need do going flag we at system there's I borderline lot don't in can the they so much for flag that And so stuff of rid of the so stuff, and of through the soon. think review, they some way you build worst can human and of system, computer some the get that's

Dave Wehner

AI and systems that have at using they're learn machine able helps real it's Heather, systems, it because actual it you're content, to learning be And learning add a what those tagging would using when that content, looking you're algorithms looking people to classifying machine benefit when look I at. to

So are we and in you actually people the who have actually do tagging ramped doing -- classification. have

well. So near-and to the in related human on AI the there is that's actually as expense side medium-term

much in the term. but in time going it's to Mark very an the maybe near the So down opportunity it's line said. not dynamics change to slow growth, Over with what

Operator

line of comes Your question Baird. the from Colin Sebastian from next

Colin Sebastian

is how this I'm in question. And picture services, you Company's related think bigger factor apps the a the your impacting to wondering growing or ultimately at are I'm remain across test, the or distance new that. the explore that then off a about pains we maybe Mark, do and just you. payments, ecosystem far scrutineer for you. competitive of Libra a how wondering oversights you do point? increase really new on in the the Thank of think markets ability the payments not Thank and family seeing WhatsApp impact timing connected to from

Mark Zuckerberg

Sure.

this, you about out in the I can questions might think I mean, a acquisition lot some what helpful. going and antitrust if antitrust of of asking a right. that bit there the about are So look, look, out questions it's Instagram, be talk I that our investigations about to I think of be that there are the are are

might but that there's that scrutiny do And to that today, of affect -- some of of so how things be a other that going we lot acquisition in -- particular.

helpful what about I'll how thinking this. lay And did of acquisition that it's so go I to kind if it were there to think back was out the we at just like we time when

competitor, Instagram that generally XXXX, the some people We space doing. of thought and this Instagram the but in about at with camera be was time we target in that what way we've complementary. to mobile core didn't new we're Back the Instagram to think as always context of course Facebook our -- was about to of thought And competing that a in it's way complementary better Instagram think to considered service.

app. There we you the apps even Cam, PAS same space. all like of were in the different camera were plus Socialcam, lots VSCO were remember, Viddy, services. Snapseed. If Facebook were a They There is back building There then camera [ph].

We going thought important. that be to mobile photos we're

if thought competing there we time, but the people was that on a them were had including share But Facebook. we like going it building at camera, better wasn't So full itself. helping only time. social featured do ultimately with we were publicly Instagram. the It you network take across we work using and if creative people filters It focused Instagram million networks to different at were photos, apply about social Facebook with remember things XX

with remember and one that even that other like that goal might quaint reach a teams know the million people. and I strong that we were Path day well set lot And Kevin specifically startups exist remember and Instagram's very XXX services of peers that at done. I mean, a hope talented the I today I Instagram founders including quickly don't today to really compared seems growing that were how anymore. time But it's

infrastructure of I what ends judgment And its up can advertising that's hard, course it Instagram look, really the or is, do, more I mean services ever wouldn't or building reality who a put a at what all is into and FTC spam be are So than of when Mike being mean, this services it of end this But we product without they complementary without also Look, the just wouldn't our that we on lot think and the is Kevin like leaders it we did it what more. whether I makes a day, right. and the work. it the and lot is the expected. had in model lot context decision FTC and incredible made amazing be XXXX. everything safety this today

well made guaranteed. really remember it can our have and outlook the was world back different time that outcome things this And I all acquisition. But the to at the was hard really then not like given be how and gone look know was what we

enough I is the space continues mean be think I look, to there competition, about whether today So competitive. incredibly all the concern for

We that like people have ideas. different competitors Snapchat, today building new in shows the which space are always

phones. mobile on And

sharing Of management private Google has course into and photo and Apple system. photo remember and both that cameras their operating directly built

of think think in we the doing scrutiny picture coming how how I So that and you just about a things general. think kind these that's some gives of of about we

Dave Wehner

commerce. About

Colin Sebastian

Yes, sorry. Yes, how far payment off is ecosystem. -- a commerce connected

Mark Zuckerberg

I not we stuff and mean the we Instagram people millions to mean, lot Sure advanced it. about hundreds Shopping course probably of payments the optimistic buy very of there's Marketplace WhatsApp. earlier. and well, have of business. do on things. years, in that then But working is of that are I most terms lot on timeframe of a optimistic sell a of commerce. there. And Facebook around approaches use we're we're next of payments, course taking driving We're in right multiple quarter's we But

we're of to We to test we are going want this that able really soon, We're news that. product. people in very to going shows It's a to share use but have India. that to have everyone optimistic test our launch course going the will India of when lot in more

systems that payments infrastructure to like payments And we built with we're Instagram are financial when top do or Libra between WhatsApp payment some in trying also differentiate we trying services. Shopping, work that new and something for technological the of what is infrastructure to make build our with like on financial existing

it will be done affordably or on rail. they're existing than payments So top be working much kind of across happen then whether today We'll thing. different Libra be remittances it to of make and faster If to able they're much certain micropayments can able works, more borders. on

we're trying lot to we huge optimistic There's years lot remain one because about do, but here that excited to working just I projects different there, that lot we're the the ahead. this for push is able a of fronts areas that of across I why different work to do am a optimistic which here. So It's forward is we'll of space. most and a have be a

Sheryl Sandberg

question. one for time have last we Operator,

Operator

Moffett line comes the of question last Michael from Your Nathanson from Nathanson.

Michael Nathanson

Thanks.

one of of me Let Mark, as one Dave.

quarters AI rationale some for paying for is reports for big who Can been dropping Facebook bit I then deals some job Cognizant So, about a is a what tonight the third-party there's you how the maybe and any embracing you Do Head news. bring and And expect outsourcing news, and in-house a ago is that or Dave, guess Mark, couple or [indiscernible] that you screeners, like is contract. opportunity? a looks I that publishers. of we to of the vision talk that you've about with about asked it mean, maybe struck pivot

Mark Zuckerberg

then that and do wrap on, Dave, I'll

Dave Wehner

But in-house. work to have different a Cognizant plans work Yes. with variety in-house people third-parties who who beyond front. We No wide that the Thanks, partners obviously Michael. have we bring on us. of a with lot of that

work and So other planned no we'll with continue that in to there But partners in in obviously model to work invest that on front. is continue that space. we change heavily

Mark Zuckerberg

excited building over sustainable be that things One news, news having are with think business right, two so about news. All that here. can And for partnership I quite second long the publishers is dedicated on there quality a I'm just term. product a the is high space

So I Feed. and and which everyone I'll is right, overall, you at who with them with of course bit look the app app they product, in if are talk uses a about the uses a of for the both Facebook lot years the pretty Feed, of News was the app start News think main tab important. why We'll Facebook synonymous much

people in to everyone And app the that a had secondary not the there to a Facebook going most millions Marketplace, if majority questions of people that even we some building are of lot even things be was, were started able we if that course we using tab it's them. one But a and hundreds meaningful of people of tab weren't don't and of be like we people could build use but still to if it, that of is are sure didn't want use on that the things do, it.

really, that's So that's really valuable.

Watch. maybe people it. while using way to to who market, will useful millions be And it that of quickly, but of hundred the million wanted, we hundreds the world, if be of to Facebook hundreds just that of of other going places, of size including us Dating. millions now of we built We tens that's of It or for opportunities doing in growing are are don't and going people trend do know there. of more. groups millions it's course little around will be news. a to get that a be it's because with a the really seeing but there We're many this very took with this I out we And similar rolled people work

keep one, to of they think works what out, this broader on their that how have we're friends Feed, are going to app tabs future kind News to probably three other and useful going going or the people is going on in also use use that going from secondary that they the are in Facebook. or keep sharing if see for be, with the I But that person. them individual they're to to to So Facebook is using average they're will family, person person use, quite each vary with those two things apps connecting community on but

different that going Feed, different are people for or going marketplace for So dating things, it's have others. be or everyone News -- news not or they're going to care using to it's community, is some about marketplace to whether

want everyone want there. there Facebook, with , publishers that make valuable or news And, that comes And we're at the going and like I get surely high really think it's something to even believe quality can a are be, XX% this optimistic I'm very work XX% to to though this. to floor going news because they would we whether not who I

that no look, So form a the strategy to product fund I for that excited kind Facebook responsibility disrupted publishers to the help Produce newest publishers, responsibility quality we that's a think have work on means the high with platforms thing of that the to have model fund do partnerships side. that I is, about I'm the help secret business to think the this It's journalism. journalism. and has major And work. that Internet that Internet the

other And most the wanted stuff, from we've right. they News that less Act historically. friends and the Feed. told of a the family when our had really more content Is usage community challenge of is that us and What that was

besides is other of and video friends public content family. less less So

find instead of to It publishers we didn't financial they to some pay our distribution in us we a past relationship. see talking the of they for even more was wanted want that really content of though and lot way generally and stuff So lot a were that make to that. to other and sense a news course of wanted telling a community support lot of of to to kind

what think can dedicated content model in fuels the We us really them tab. financial will sustainable to this. can publishers, finally we high long-term support cycle I news that in in sustainable makes we the a pay be business forward for journalism. product. I'm with great And virtuous a where be there This news And relationship have help with really tab. a it business doing would way quality be It so. model now works can do and that a happy to that long-term can the go But where space in for

Sheryl Sandberg

time for Great, your look with We today. speaking appreciate you thank Thank to again. all us you. you and we forward joining

Operator

gentlemen, Thank joining for conference us. and today's Ladies this call. you concludes

may You disconnect now your lines.