FB Meta Platforms

Deborah Crawford VP, IR
Mark Zuckerberg Founder, Chairman & CEO
Sheryl Sandberg COO & Director
David Wehner CFO
Brian Nowak Morgan Stanley
Ross Sandler Barclays Bank
Heather Bellini Goldman Sachs Group
Justin Post Bank of America Merrill Lynch
Douglas Anmuth JPMorgan Chase & Co.
Eric Sheridan UBS Investment Bank
Youssef Squali SunTrust Robinson Humphrey
Mark Mahaney RBC Capital Markets
Colin Sebastian Robert W. Baird & Co.
Kevin Rippey Evercore ISI
Lloyd Walmsley Deutsche Bank
John Blackledge Cowen and Company
Michael Nathanson MoffettNathanson
Brian Fitzgerald Wells Fargo Securities
Call transcript
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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 Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]. This call will be recorded. much. very you Thank Ms. Vice Investor Facebook's begin. you President Crawford, Relations, of may Deborah

Deborah Crawford

you. to Earnings Year welcome afternoon Conference Fourth Thank and Full Facebook's Good Quarter and Call. XXXX

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

started, update may get XX-Q to like in to with that those forward-looking today's of result press quarterly by call as no differ release you materially would and or these to include forward-looking statements. our take today these information could results on our new from differ to and remarks make SEC. I report set will are events. statements statements opportunity cause on Factors forward-looking as today, Form statements. on remind forth we assumptions Before this undertake of that filed a Any are Actual these that results materially based contemplated future this the we we in obligation

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

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

Mark Zuckerberg

vast people which using services businesses now our our X.X majority least that each X.X for around billion are small everyone, the billion All right. There end more for services free. people strong use good our Facebook, was grow, This business and a now for month million There a and using us WhatsApp Thanks, of joining to our today. quarter and services and of XXX year. Messenger or community to are around at one Instagram, our the than daily. use

our debate that to more political law behind by especially to as still protect few and our India our experiences priorities, any critical focus we've a going year, social EU election midterms grow the measure, past this is And across but get Last advanced XXXX: elections what now mostly alerting world before speech made countries experiences, building, U.S. focused shared think going the There's the the and working interference. the the social new lot progress heat Mexico any and communicating Today, to of preventing the building threats making in after be our to are from up. in to I'm priorities often enforcement other intelligence than should I'm getting in be an to another on transparently. in more continuing there for made issues, qualitatively major we're were this to company business, be product year out about in XXXX, objective progress and for they're the new our systems integrity, of EU integrity four We still on to very -- identify. where but elections companies. the that area on that, we of efforts product proud and election about We're years, to have But progress I allowed, we XXXX foreign making on is going kinds progress. issues. we're I

big as focus be privacy This a is on year to our also for going well. greater

out beyond we this today. currently new standard settlement, building FTC more and law our We to by that's build a our auditing for controls working engineers privacy-related of projects part anything that set and than As program. have X,XXX going will committed to helping required on privacy industry,

sure set of want have that that this, we're to announced them. X and the they the people, just a billion Checkup nearly they Privacy out making we Related they're tool rolling them yesterday, that to reminding controls way

signs account introduced notifies you that into new tool also a your anytime new service. We a

over but our next services. time, reputation going us the around stable strong on reputation as I it's as good, build to want privacy building decade, take a that's to So,

these important don't I service decide private rules allowed important each regulations. comes I what process elections should for is think have it content what that don't When be There more advertising many to social by think should be issues, a to is decisions the themselves. determining content making companies so harmful overall. individually democratic or should these and or during

that and industry regulation The not it's for wants. high that's the expect community mechanisms principal our clearer issues, continue of of also whole to we level seen called decisions. And these as For us to face clearer for industry. decisions until I've governance, our make other And very for why scrutiny. legitimate just to reflecting be we will rules I establish and need or enough get a what

gotten When So product are and I'm our sense most at for stay to is doing billions on and and this, the all we people, and think our the look social right communities large, intimacy and that focused with But of of we product connect people to today, experiences find to up on chapter are. the just I of next grew from job things have and ability in intimate to same people, deliver the improvements is very that what access a easier all have Internet to that social that's continuing we commerce privacy. outside company and town people expensive. have The for our on anywhere making and content, crave distance this world unimaginable more ways a more computing all our out that during community. areas of the you coming generation the into enabling are a the delivering platform. keep I focused in issues building it communities, so private and XX,XXX next calls platform the payments we made to and increasingly ago. was Today, area as long opportunities And were around networks better

our experience focus. this So, is delivering

disappearing how data your around are do to doesn't in more people small private growth communicating greatest stories continues groups, where from the stick a come services, lot forever. our across to And and here. There's messaging,

year interact ways communication richer, to much find where to spent the your we with apps Messenger engage businesses so about While have lots care private last social our WhatsApp Instagram private and just with out building texting, naturally. pretty infrastructure different groups friends, messaging can private you with the into be with Facebook still are the platforms apps, with and our of people hang you apps turn about, and present developed interest, more

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area is that and Instagram. for will be also payments and private our platform, the but important social across all Commerce another Facebook including apps, of

here entrepreneur big that historically small tools access opportunity so a business every to have companies type to, there access stand to of and is goal we that's sure only sophisticated the hands. individual, has in power make individual's putting out same the had that Our the same for what

test using X WhatsApp so people sending lot be when in And excited approval for progress week, get this I'm launch. here with send going of after going about money easily been we've we I many of was week One rolling knew example to a a on expect quickly as to that is million to this, it big be we as of back when and people to to kept make India this start to Payments the you're We X to a in able months. us where and in photo. it the working got next number and really in out XXXX. countries

and Facebook more to work help Instagram our other on Shopping, Beyond This to Pay is efforts work from such people. on big WhatsApp on Payments, Marketplace a commerce important it's working we're empowering Facebook several for Libra. or to facilitate space, our

taking systems. can economic So businesses from heart small of and selling come small approaches also people together. with through different are the communities. to tools up here, everyone to storefronts, India's time since We healthy businesses people use important a to services see ranging local like buying on to maintaining number how global not Having broad businesses communities themselves, of businesses creating small where to -- directly existing creating businesses our engaging succeed national and where number things only it's directly often the new existing is all from other at ranging on a key growth that often payments of support our people are their UPI setting using to each messaging systems we're

and top this on So the business. fronts, social both us the for mission for is a priority

the they that person virtual only and next live another characteristic And We've VR also defining for Grail they social another you're or computing is Holy been and hologram people a people move and that and they're another or wherever so dreamed a access we've last are can as to anywhere job. together person going place. things of presence, augmented there country the don't on have platform right it's want XX opportunities to where no focusing like of matter let letting in build the to in delivering interact years, the The of sense if And to of AR into experiences. or reality. letting like us they city with deliver this they find is work with

Oculus away, years with hit making. that's shows augmented volume and expected, So real an measure. people bought almost is And than reality is we the buying but to. virtual are any Sales milestone a Day, with progress of this and a that stronger expected the million is more content On people this number content Quest. And worth we'd while it outlier store. by ecosystem in of reality are for than we full still Christmas day, $X engaging real still,

the tracking, so hardware. also on be quarter, your to was content one just no which of on experience from Rift going Last better. we Quest. shipped shipped possible now Link, all almost you PC Oculus your with hand The keeps And Quest we run thought can getting

going interacting other working the to that our with widely operating that of with overall, the Spark worth AR Instagram hundreds and is are tools new most of and using this while people here face AR side, month. the we're positioned it's we're effects the well On this AR viral hardware world and on going create and We're platform used long-term noting keep Facebook. filters platform. platform are in developing every to system, across Artists millions

people. And because was we are bigger we didn't offending for also stand of wanted One always focused about. we're critique I'm clearly were more much some our approach worried initiatives from we these, that because last decade of communicating communicate we liked, the as clearly that our product be what the for. those So excited of to aside on views about

some us to to led positive to company. people you And this in but for my stand need but this towards decade shallow towards So goal understood. trusted, liked, to know to for. sentiment be next order the isn't what and be be Because

So agree people who who social say of against communicating for going that's that up standing focus people standing those letting up the communities those are would a who against person premium we're who censor communities tools is them, build you every giving giving for to who their small more targeted our a up and principles, in served. that in types say against people who a standing media us, that on whether really forming dividing more up pay on for voice people, the don't -- advertising bad problem, say against encryption privacy with to helps to standing own sophisticated opportunity or have for those for world be say mostly those that standing order up serving those against new businesses

to these there popular, and and to of I I more these to agree always These whole open want are with for arguments these head-on. who know be going that are aren't important people lot a a it's positions debates see who there are us made. think them but take to lot principles, get

So of expect year. that more this

an year. with intense another be the election. be important year to going going It's to is This

our bets are start fruition. Some to going of coming long-term technology to

to have show we stand and out what there momentum, and for. business get strong have We we

to your for for you with As of this on all and grateful being journey us. I'm always, support

business. our And now going over hand I'm to talk about to it Sheryl to

Sheryl Sandberg

Thanks, ad was year billion, ad year. a had quarter Mark, Full the and year-over-year. revenue to the XX% board everyone. strong XX% compared a XXXX. grew to good across hi, end $XX.X revenue QX We increasing and

because our with is for around X million We're also but value us. help mobile we million presence, the the free with long focused who tools, people. right advertise with for the creating on over sales, more XXX and world term businesses The relationships the use customers hire platform than grow. majority our community are who customers to increase businesses and there and This a our create build use businesses connect

to continue tools people to the free paid matter on helping will our We and most. businesses the use focus reach who

sales. season, perfect with gifts. advantage artisans ran e-commerce ads based around San a holiday our of in Diego, supporting on sold measurable visits apps optimized best off We than days, retailers the they shop to the the Pura website for and Vida, used or particular a deals Throughout more sale. company In for jewelry people XXX,XXX Instagram online strength X and take than and world. the XXX Facebook like XX% who more objectives saw bracelets, for

up million We to stocks example. last catch Instagram show businesses, recently and people from X this time try Stories to to and new using Bombas, as million apparel as make a businesses possible announced wrapping. advertisers is easy it ice-skating we often and used great for year. up. People wearing before adopt their are X company, sock Stories Stories, gift a while technologies

XX% As from they people a increase saw result, purchases under in XX. a

are the right the and the and experimenting benefit of and in U.S. over get now advertisers new also it people closed we're to term. fully making Checkout. XXXX. We've with In formats, launched Checkout helping can on so our been shop apps. taking experience, shift We're We Instagram fully people on building businesses long for small time growing QX businesses directly addition the hundreds to this to a in beta to easier with

We a businesses small the large they and Large to across businesses when TV the Economics. can most like new said, only that growing helped Pura billion and contribute of X,XXX Vida previously biggest Copenhagen companies businesses national firms same Bombas could and give access. year tools just we translates buy billboards, small spots XX alone. EU the all our to but companies help Mark Last This to while countries, the According targeted why privacy. That's say as businesses sizes report because communities. audience it right do people X week, and than reach European XXX message, the a more Economists million matters more ads. benefit We from people's invest released year. really their can't. economy and jobs succeed, businesses with most protecting small we focused apps EUR hire in surveyed last this about with last them

meet XX% in week findings started I enabled XX. quality I earplugs the Naomi Flare than announced countries Facebook to where more More XXX to with than her loudspeakers. to business grow these Instagram. to has from sales Roberts. employees their Audio in come Naomi had everything London their sound chance husband This last and export and with to X to from of from improve the them

remain but committed Stories businesses why we like and Naomi's to grow, enough. are customers not small know helping reach it's we

month, we gives keep to a to experience have are. political also safe and to feature their including We people This number apps, of transparency improvements fewer our new our them ad give option announced people tools, we ads. that the industry-leading control on and see over a

to updated and ads more also updates and believe We them is and reach people people These that safe. library it empowering our to is transparent this to navigate. understand transparency make critical to keeping who them, help trying easier we

in We on control privacy be their also Facebook. to want of everyone

Checkout secure. what to and taps, With Privacy -- to world. share can X accounts updated our people nearly around people sees billion the out rolling are how keep we who few said, they Mark As Checkup their control tool a

can feedback to help us Every saying turn and jobs so world. them by around revenue, am grateful valuable our partners want to how products ideas on how I they day, we improve economic into great our empowerment. to close give I the

to thank of teams to count people great still that prepared want are around hire. working also while grow, for solve I the our who dedication, use your compete us. to the billions products Thanks serve world to continued better and building on challenges we to tough businesses

Dave. here's Now

David Wehner

we and XXXX to $XX billion over ended net quarter generated our year billion, XX% good strong business. and Sheryl, revenue year a income. a QX for good everyone. grew was $XX and in Thanks, Full afternoon,

begin our community Let's with metrics.

billion estimate one of monthly X.X terms were a approximately basis family X.X in approximately of daily at on billion active metrics, people basis. used a people In we that services December and least our on that

estimate quarter, and our metrics Beginning presentation use on our fact SEC the As are our of a people reminder, one this including many metrics investor of the that deduplicated family reflect best family the Messenger services. of slide filings are more and than information believe across Facebook, and website. these Instagram, the our our related audience numbers we in WhatsApp. community size We better and the

Facebook. Turning to now

DAUs with in Indonesia We Philippines. growth X.X Facebook up Daily led all pleased billion and MAUs last metrics grew compared regions XXXX. We to reached year. India, community to the late or December. active in Facebook-only by to community plan represented last in growth the approximately of monthly are compared year, through XX% X.X users quarter. disclose to XXX of the the X% continue this X% billion, million active users

the higher. foreign would on to year, a XX% billion, total a constant All up basis. rates comparisons unless now was approximately currency on $XX.X basis exchange are of remained have total otherwise year-over-year revenue noted. XX% QX been last financials. with constant revenue Turning Had QX million $XXX or

in total and World, was regional currency Canada constant XX% a Europe grew which at XX%, Asia and respectively. and rates up and U.S. slowly of more ad Pacific XX%, XX% QX growth On revenue revenue ad strongest billion, XX% grew XX% basis. $XX.X basis, Rest a and or respectively. on were

was engagement trends was XX%, ongoing decline ad the growth increased was in Other by mix geographies the and the towards ads Instagram million, services served average community and up Facebook to by app. $XXX was Year-over-year ad last and Feed. Instagram primarily XX%. primarily year-over-year the driven per QX, News driven In Feed, Facebook shift growth News driven in X%. which from Similar per Oculus ad Feed Stories price at growth impression of our impression rates. Facebook benefited by on largely decreased lower The revenue total growth of and monetized number quarter, price Stories impressions sales across average on Quest.

our by Total in now innovation driven efforts XX%. primarily expenses QX, the $XX.X expenses. of as XX% Cost related depreciation XX% to to billion driven increased revenue primarily R&D XX%, AR/VR. in growth grew core spend. our up marketing. Turning grew particularly and increased in was were and driven well was was and and by by as and growth product investments Marketing sales consumer primarily infrastructure

by we Finally, legal driven month a Act reached Privacy principle connection includes million Illinois higher in Biometric the and G&A Information settlements. This settlement XX% largely with related in fees to litigation. grew charges $XXX this

year We up with had technical ended We new XX,XXX hires XX year. over X,XXX XXXX approximately in the -- compared in XX% compared to full-time primarily to net functions. last employees,

Operating operating income was $X.X billion, representing margin. a XX%

XXX% tax or servers, centers, $XX.X per new by Our are data data XX%. Nebraska, investments $X.XX in driven billion and was expenditures buildings by data year Full $X.X were network Mexico share. centers office energy. Net in up XX%, opened These billion, Denmark. XXXX, New infrastructure. In was centers capital rate we renewable supported income and

levels. XXXX by impact. committed lowering the energy emissions to to renewable global we're our we from company, part to emissions meet carbon minimize operations our water with are doing working entire of goal supporting change. to on our help and our why Across the tackle challenge of XX% and We operational XXXX climate energy our XXX% That's are track

the court fine common this note agreement I our the repurchase year A and Today, authorization of quarter, increase -- though repurchased of stock $X.X the not year repurchased of billion ended $X billion investments. in FTC we XXXX, program in In billion we is a XX. expense we earlier $XX stock with pending have we announced had billion we the still cash and December We approximately $X.X prior approval. our $XX.X of as our booked the announced Class remaining authorization. as paid billion would that

the outlook. to now revenue Turning

and to We point revenue year-over-year as compared percentage growth total driving as to expect QX of growth decelerate business deceleration our our to from mid-single-digit by Factors maturity the reported low the global rate. rate headwinds. include increasing our other ad a privacy impact regulation well QX targeting-related in as this

have front majority us. date, modest the experienced lies of we these the in While to some from impact impact of headwinds

expenses our expenses. Turning anticipate our now to $XX $XX be total prior will range of XXXX in outlook. to billion from We the unchanged billion,

at infrastructure. driven data capital XXXX and network outlook to unchanged facilities office in servers, billion expenditures also our centers, Our by billion, $XX investments is $XX

expect in our be effective rate XXXX we the high Lastly, to tax teens.

In finish summary, strong QX a XXXX. was to

the on and pleased We with to focus continue as business growth community we of mission. our are our

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


[Operator Instructions].

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

Brian Nowak

two. I have

any the key one from Commerce. Checkout, learnings majority sort what ad of the adopters risk over us regulation, of of are on then, more give about friction and hear go the guess years. there of of have contributor of targeting the that you privacy larger as X to back you're about detail Dave, Instagram when Just is your going hundreds thinking to build a you business of the really lies the early of into can learned sort you I sort first couple targeting types about you of breakage curious what And the over impact of to I'm that and types next of X as points Instagram the that ahead see to think potential the you've data sort efficacy forward? and or ads or to comment of to get

Sheryl Sandberg

So part question. the I'll the take first of

require on Instagram, more businesses. hard expand are we're These and the product very integration. experience days, about improve experience the So when these full to you working think early or shopping and the still checkout to

have making So we a through. sure is consumers partners way right the board and our on great experience get the focus all

very we ads. us across and make see that very, we steps And to going go and began in to to all But to to board the advertisers go are slowly moving globally the right shopping carefully very checkout experience -- have. people very right shopping small because we want shopping the more is what and sure are is before this broader. people QX, entire from deeper we experiences expanded testing you and deeper make ads and get We you're very, across all

David Wehner

Yes. Thanks, lies Yes, in I Brian. and us. seeing front we are targeting as headwinds the noted, of But impact measurement. terms majority that in of of

reminder, user prior Just utilize of activity third-party on these sort website on in effective as a and that signals relevant calls services I'd and that regard, from factors we spoke as and ads there in well. users. to, three order deliver point And to our to to I overlying are

GDPR to regulatory recent our they'll use ability CCPA impacted, continue First, impact now the such initiatives we and expect have like to signals. and

systems changes made data operating off-Facebook that own finally, and ads And gives signals changes use and Apple I'd at we've will of to ability then and use signals. mobile to like rollout Secondly, to improve have point something ability to today. limit the providers announced as our and users that's there such Google XXX% the activity future controls, limit and our product such product of browser And those experiences. other that our plans

to that can Both our advertising ads ability revenue So, and and ability and importance to Mark impact a important businesses these target regulatory the of will it's to and impact growth. of platform, the think platform that each thrive. I our small of limits the ads on Sheryl And disproportionate businesses. of our talked use about on measure small to note factors negatively for changes grow the and effectiveness targeting have ad


next Barclays. Your from question from comes Ross Sandler

Ross Sandler

anything the in can in about slowed you I or quarter. in down? was growth that talk cohort XXXX from quarter, to growth surprised advertisers U.S.? at in particularly the lowest your XQ any Was fourth it there since look the guys think Great. rate the the the rate U.S., we fourth XQ particular of Dave, we that If

with happened So line was the any plan? fourth your quarter, this color in on what or in

David Wehner

there. real No surprises Ross. Thanks, thanks. Yes,

with are being holiday season We pleased strong had despite We QX results. our abbreviated. a it

into North seeing our there's and we In surprises in more I but markets. going the terms had wouldn't in America true American slower we're of North with markets the consistent within numbers, say That's mature quarter. It's developed outlook real there. Europe, that any more our growth the


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

Heather Bellini

where I which your traditional to integration is kind needs shopping match much ads? guys the that you're done you And the this slowly, be I you with need actually of wanted make work would envision the you And just to that Instagram. is on obviously more guess have people that benefit going mentioned Checkout are there could experience just businesses one seamless, how up system. buying? out getting of of levels inventory what rolling understandable. follow-up a the how very be using from the with versus format inventory the about due I'm to is are on And this integration to it wondering follow you businesses' you to

Sheryl Sandberg

So, the right ones integration you want. spoke of we the are

checkout for a way You to all from on, really discovery, flow. the all we're what want takes that a go and has level. product It working to seamless And deeply pretty that's be this integrated through at to through way work the time.

focused great, strong commerce ads that are on that You're also holiday is had commerce season. on great on right a We we Facebook, the Facebook. very ads majority activity great, of very

in discovering continuing lot there. we're across interested Instagram to of who growth and a make products are investments people across Facebook, to continue see in, they're We


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

Justin Post

headcount changes XX%. changed privacy I outlook, at And first been growth Dave, quarter questions, noticed commentary. looking when there we're anything Has expense then? then since third on A secondly, less has couple of on the year? since incremental deceleration was the around this

initiatives As expense do -- And to mean I you expense call as guide of are other growth XXXX? getting there headcount kind expect far that you'd to for to accelerate? out your your guide,

David Wehner

Justin. Yes. Thanks,

don't of anything I QX since our signals. around have terms So the has in think on changed outlook that ad we headwinds

consistent several the over think that's talking quarters. about with what we've I last been very

be will we'll to think we impactful and I continue they more move face forward. So -- headwinds, as we those

terms factor we board to And a XXXX, plan growth innovation growth there. of guide invest of the of to off -- is continuing that expense say terms in efforts across we're in In obviously would our of headcount. large terms expense in headcount I and R&D the core our driven of

as addition, marketing large spend well. expect other increase several expense growth is in as to through last we grow, statement and of infrastructure CapEx flows years, driver the including in In nonheadcount-related content our over expenses our growth And the income there's that investments. another


from line Anmuth of Your from Doug next question JPMorgan. the comes

Douglas Anmuth

have multiple family. payment you initiatives Mark, the across

talked the Payments, time And Pay, Can family? towards interoperability? you just Facebook tie payments these work Libra importance about the across WhatsApp and as Calibra. you more do over You of potentially about talk how together you around

Mark Zuckerberg


a lot are different commerce around for people trying segments of doing there to payments what are do. lots and we're So because

a and used and sell buy In selling buying terms of things, goods. to of lot people want

We storefronts. A messaging through Marketplace Facebook well. then up have We're for as enabling through Instagram businesses increasingly Facebook set lot want and to small that. of that and

of any you to your last will WhatsApp that we mean you to can credit checkout for From other card something the a so basically you apps. announced that across year our more only we'll need pay in payments it program of be frictionless and use once, a side, Facebook I then Pay. Payments if part apps, the have this make enter experience

So things those tie two in together.

is Facebook that on things Pay transferring Foundation money around to the infrastructure, world. will being WhatsApp we're different some especially think infrastructure and for efficient, approaches proposed handled across around national folks payments can of that borders. and/or make in are proposal And that's independent payment payments companies today like a if in about incentive more the an many you have top around so well more things work we that to Libra there such working overall doing work be it, now work of by wallet places are Libra on Libra. that this longer-term a with payment of who make That world we're or multiple do across it And the one where of the the kind lot country. aren't whereas that built a with the Payments taking where are traditional what like on we But

could So place that we where we that's some add. thought

be the tools, and use able measure shop, payments, being set that's up technology to lot on, ads. to able focused a storefronts a we're access to some for same about ways effectiveness A But to of without find this Wehner ads things with and heard what you sell disproportionately get all we to. big we Bigger And small work easily, of to to of the easier that larger potential able doing measure sure with the tools of will towards compete think changes had have A small have companies. companies are the their end talk for a kind overall, businesses' ability to concerns a bit. of we the ecosystem making the same it individuals their is making and that. and that up of access companies only have effectiveness to -- focus that to to goes -- the lot historically hurt where the going big be businesses small access of businesses us lot larger that


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

Eric Sheridan

I as can. if if Facebook integrate Mark, the on you I the more over thinking you family umbrella. the had the as to talked two, look the as an couple we the on back end wonder the could update get previously Maybe the out way tech about trying applications of branding about next integrating you're under applications in tightly to consumer years. well them

if I on the Facebook and as out messaging, front the years. team next on get And a an the about comment and both messaging component you couple can monetization the then thinking way use the applications, following on up over the we update is look on monetize Messenger thinking of of more to WhatsApp might messaging some the products you interesting about wondered

Mark Zuckerberg


So on integration, We're it. from going the I here's about think to all the brands, keep right, overall apps. how

mean people I associate are right, course, these a communities large with and that strongly Of specific love app.

going stay. clearly to that's So

it have one may of the run that a kind today. is of I integrated We years that everything company, they already back feel. all integration, when common apps is just way to the it we better. the that below way, running infrastructure, efficiency apps to But system an where something, set the we the of push the the already all surface, tightly And a everything. in engineer end tried think that's very -- not using of terms models. company integrated off these improves next engineers and up in set the That make In for are people -- makes few think in the of infrastructure. I want it's very so way a improve not all business apps the improving up we we run We've

that make in the when experience or across engage those, family, better across built too. it Instagram to features so want that or Facebook WhatsApp make apps the can other and your it also get We on people

kind why things. doing philosophy of we're behind that's a number So of the

we stack layer need Some and that But why is historically, not that exist. integrated, a the that to now didn't same that multiple work better be we to it voice built If effort that put rate. at means up as technical got making good. real across we places it to on of we make just reason faster into have didn't in there's and to could just that some The WhatsApp Messenger, stacks calling different. twice then everything those need engineering a much standardize be

So there's work like be that. going to more

their things, use will different identity some people more important. have the to think and they I visible continue apps. really -- of brand that's to will own apps for them because across it be now always start and somewhat The


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

Youssef Squali

you stats Dating? that, can into any have question. guys Any And as about. Any would plans other around actually is I you to push it us? us That talked with update Facebook share that just not Could Great. Mark, geos? Instagram well? one to provide product Okay. you bring one you

Sheryl Sandberg

we that's then to one. half and going the take back answer question, that, messaging this last go monetization, of I'm okay, and So we'll second if answer the before

be on on the connect And we in message. anyone and over really should participate we long this. to else run many think, in opportunity are so On focused the messaging, that ways, the than for industry we're there consumers to businesses in positioned better

we're in direct In that of terms taking ads slowly. very messaging,

Messenger. very We have don't in out rolled rollout that We in slow a WhatsApp. have

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think the high here. ROI is We also very

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be ads the businesses. of the the think we Messenger how that do, now shows messaging potential for we already clicking can important through combination the discovery so And of can right

Mark Zuckerberg

growing. stats I the going going little and have could And we well. expect I to already specific think experience. to we're well. dating on It's think And Dating services, of we but I talk share don't it's any top a one we bit about -- continue Yes. this, the

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the of Facebook app, here Overall, I that Dating app things the one are everyone a if But going utilities value to think the uses is basis. might that who really to find that of that daily even is that it's on wants people use way within is the there hundreds millions think everyone and mean of not News different social we use strategy really in. them, fits only we Feed the into central

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

Mark Mahaney

to carbon question to election security Posted do have But this the love on do congrats the know be goal, in with has The companies one, to that. things, about that. Two I year. happy to love real see the have reduction you'd of Mark, that. do it. -- Okay. platform more

handle may well you can There can't the talk was how know be Just to better lot I that, there's actor confidence lot do case. of but be bad there's you this were be be anything going to hedge to the and control, that think you To things interference ago. its or you you the X to so prepared, ready a which And about risk a of you is it I have? going about am think a I as is that there could that's talk trying are more whatever? risk, years there going platforms controversy the assume that year. around material I quantify elections, to to just sure And that extent Facebook

Mark Zuckerberg

there going very fair a be where certainly well Yes. on. now think out that that year. we that of the needed with we This information something for as of it's think I watching operations is have be we the extremely as in industry is say that -- kind to to lot we Since of were focused do lot -- I this And XXXX, need that rest we're seen. expecting governments be behind to to and and the a

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much So I are the systems think robust. more

had the we'd we the Parliament and be what people that we our were did the of clean this commitments of met where the and about a where, I testified think in for last do. interference. EU were things then that to elections And going was election. lot we going there in kind the after elections President released to statement other example, Parliament do, And it I were saying foreign relatively to around look and that said a you a gone the can actually at very would worried year results world EU EU

We've from think And China advanced. lot of well. going to get it's So attention, more not seen got this it's places, Iran, -- similar the continue adversaries some others a we're and Russia of certainly I types at as just seeing point. attempts because this

more look out we I kind confident there. overall, of where about feel are. do So for there's to But

an these think One doubt community I need warned is of sow we the directly, just of intelligence some nation-state the necessarily of actors legitimacy to that look about election. out us for, things has not the of about of is to some to that goal but interfere the

is So meme even to sowing the extent that not specific of attacks, there's that a interference, widespread kind in big effect we there terms if that about of may see even things. has but doubt the same

know So and we're making top this on really a -- this what that confidence. can very us. is sure people focused for is priority And this we're that just so doing, they have


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

Colin Sebastian

well. for Great. as me Two

existing shopping multiple the if better curious on up then fit Lasso, I also some like separately, as application. distinct might includes services that the within a here question, ultimately across here Following of you seems engagement? terms what apps Marketplace as And these the And the usage such or current or or wonder and from are expanding newer are commerce on apps visual if be of seeing features distinct that Threads services? focus in

Sheryl Sandberg

people of Marketplace. used every can now talk millions I hundreds about by Marketplace nicely. is It's growing of month.

It's Marketplace. which good with seeing can advertisers. to but out ads markets, their Feed we're very means retail auto lot in rolled extend which We are of early, also seeing results. available ads We're and advertisers a in News Marketplace, interest, XX especially

this going continue believe the But foreseeable a to future, even good we we're ads remains invest. great the opportunity focus. for is within to this, So

Mark Zuckerberg

Threads still the It's apps think And you Yes. launched a I and couple within we've Reels mentioned Instagram. and that of early.

big, promising core over our independent some to should be or should are service out I into grow Instagram think apps. which signs. time, there be or the other integrated extent the the messaging We're apps figuring of those to

and showing that time, figure to we'll be functionality. spaces those in, of kind important both certainly Stories-type but messaging visual over So are interest-based talent


from line Kevin of comes from ISI. question next Evercore Rippey Your the

Kevin Rippey

for one you. is this really Mark,

back little on the rolling of Could more hear. out provide described that maybe you color half you're You the of a kind be It that could and the what in new be would to year. great envisioning? experiences just

Mark Zuckerberg

in or different in build interact lot want them talking Yes. lot people private can out you And you ways. a of there And connecting different our number with apps and is messaging in with a platforms. Instagram, I've we're interested been how trying of social idea in lots interact a of ways. private know richer, into the Facebook people about to that to

But still today apps our primarily texting. texting are

is direct way so build lot been Messenger trying evolve being and that a can and make that we've where infrastructure, we what of it Instagram do out So WhatsApp to just places the than rather so can where do and present you different commerce. They and with feel in be places folks. ways, different hang where groups people, payments you can interact to businesses out message and can you connect more with

the And when long-term was building. to a needed off that we initiative, kicked this stuff we big infrastructure of get started lot

that. year we're So so -- we've lot a build a to now or now been starting of into -- out

guess this I land expect of is I So in this of I'm to all it, longer the some year. what of term. just Not stuff some saying is

sure really implications safety on that that as well. around rolled rolling we it right. to before we're We're WhatsApp. across that doing project. safety of of example, just encryption, to full fully long-term out work committed we nail that that's want sure Instagram fully Messenger making the a make get -- and For end-to-end out parts Already that's We the the

I lot So building this but this this not start the year a year, will private expect to land land of platform. of around will some parts of this vision this social


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

Lloyd Walmsley

this impression have the out second of growth. quarter you So key the a called Facebook core is guys as row where in driver

if on expect is something in whether that guys just core wondering engagement, can bit a you elaborate to strength you blue So what's this driving continue.

follow-up of product. related that, And Facebook ad a you as plan Super to been Groups to specific a I guess kind press Bowl the there's some

Any color be would you the or is great. how there So any Groups strength share impacting business? updates on could ad engagement the around

David Wehner



that Lloyd. the a consistent -- we the been So are engagement we over quarters. Facebook pretty has app broadly. seeing we're take And I story this I'll pleased you'd Yes. have with several the on mean as last that, mentioned,

on the that In regions. feed Canada then growth Status WhatsApp in across is of to In all world, but character we're think So different adoption I and the the strong we're I that for products story, And don't engagement. of of Stories another strength in think seeing seeing the specific provide those Facebook, video. it's the region. And way that to some to globe Facebook, the seeing we're U.S. I'd I'd people nonvideo new in a I'd But out. engagement share. connect bit say call little and of continues apps, drivers of on seeing by we're all our core around say and particularly across other and, are sort a good strength regions,


Cowen. from Blackledge of John Your comes next question the from line

John Blackledge

about been think then community there's core And within expansion. How advertising the discussion area on we should on inventory for strategy update video questions. on Watch is an engagement? Instagram, And Two Facebook? Explore some the users any ad that and

on trends the ad tab. on color any Just Explore

Mark Zuckerberg

We people was and News a of what Feed of was strategy the is well. and News real video services that of People creating watch trying just Feed. the and lot these other on part -- social connecting Yes. The we came But people displacing utilities as as the consistent on our to video we're of been social found has straight a lot that what of do pretty -- of was consistent. rest it's with some interactions also video to for. with consuming what core tabs

So video, people for have tab, as started separate growing to fully -- and quickly well. a we the needs in Watch, order been creating for that meet basically, that's

more the that or either building as out that You -- experience. can or service like into new around subscription there It's we're along a people think we content anything about marketing bringing lines this. the not the of acquisition do

and examples to good some anchor that the and more content help that's just experience. people content create get community into of So

Sheryl Sandberg

can a bit little the opportunity. share Explore I about

Instagram ads customers grid, of than more to the you are were using So of reach mindset. it a QX, ads up. And XX% is on of Explore Feed-like a experience you the click in on advertisers. as great every works way in already month. are discovery where Explore it's who show opportunity a XXX% available to think We accounts a enter after And post the


from next question Nathanson line from the Your MoffettNathanson. Michael comes of

Michael Nathanson

one two, for and Mark. Dave have one I for

the these you larger opportunity U.S. to the Mark, on do than see including What I if you are drive to or numbers is that heading? right, wonder the deck, ARPU other pricing And should of So the maybe other U.S. market markets, drive when this of you're -- all other what U.S. I trying Dave, look impact you what And you move are you size growth the at your look impact guess, factors? to payments, all much then parts Page at where, are markets, try be to Europe. payments for amazing for for the X, to And you are just gating initial what -- slide what advertising on just those in if to ARPU what to your closer in look looking would is have we your business? what ARPU for so markets target? where that to pricing get And closer expect?

David Wehner

I'll take Sure, the Michael. one. first

that's which on answer the the segment countries previous which X over the Canada developed years. Canada the Europe market, think is And this countries. pure-play largely U.S. pretty is I that question So of U.S. as consistent same has broader really is been come and I've calls, is is a is a the in up mix and given a segment.

you've and in got there. Turkey So you've got Europe, Eastern

I stats, maturity pure-play levels, So it. Facebook-only just obviously a different not ad of countries. you then are markets in And into were number also think Europe. you've at It's the on capita I dynamics if look really, countries included of market just you for Western that guess that much segment. based that closer lower to there's those in Instagram got engagement different characteristics those per but plays the, just get

countries both So in what's within APAC. faster lower-ARPU the growth that's also the in difference and within general and ARPUs, you're really Europe getting driven in

mitigating as the those because there to users tends that on of quickly. lower-ARPU the impact also So towards grow more have mix countries a ARPU

Mark Zuckerberg

Sure. And on payments, with we're places in focused different products. different

lot even doing For it's developed a lot a Instagram on Facebook, of countries. things what more like we're and

on countries biggest the WhatsApp. it's WhatsApp, For

Indonesia, and and the up community countries that's Brazil a So India will make like large and on Mexico which of WhatsApp. part

it's the more being ads think, just transactions, ads valuable to valuable. and services, around, and The is have be a we way your loop is we people, be money an will small just is this out that it's move as on going presence expect that as important and businesses. to close pay for perspective, on well so able a business From friends make to able this to is more our buying it basically small that -- work to going to individuals feature

link and a you to product the Instagram or which Messenger, ads, growing then is in ads Facebook click-to-messaging but So run that's WhatsApp well.

for or bid from the businesses of business in complete more really possible. focused by businesses far and in to a worth you bid is Messenger, the value that can as more and on for why that get be they'll more ad which As making the that prices so you be there, free perspective, auction. WhatsApp the the cheap to it valuable it we're can will more think be would as we just having services so payments expect Because we payments some


of last Your Fitzgerald Wells comes from Fargo. question the Brian line from

Brian Fitzgerald

you December, ZeRo, on you streamers in board, Corinna Play Disguised few gaming last weeks, the several Within Toast, and brought Kopf, the acquired Giga.

maybe about overlap hear strategic with we the Oculus. bit a more opportunities Facebook and and there Gaming So want little the to

Mark Zuckerberg

are Yes. things couple of different I mean there a here.

independently. Over term, that the between in there the Oculus, Facebook connection surely them developing a be opportunities will or that. long for somewhat we're we're doing now, right be will the in and there -- work But app

think where a Dating talked we've Facebook think connection on social the the We've strategy talked the the extension Facebook utility about an Certainly, We've -- News Groups, this call. as can of about to about about a the you lot can of people I about in within app, as talked tab. Watch. are we're communities effort are that the really out. there get mean of I and connections that kind It care who who gaming. services content video that engaged that. for -- has live people building Gaming

hundreds that to is to great. going not of think to something things one going different build and or to and use increasing focuses We We're the want like it, communities. build millions use. for people be is just of are trying to want gaming, that's us this everyone of people ways that just going So to want the interact to

Deborah Crawford

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


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

may You disconnect now your lines.