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FB Meta Platforms

Participants
Deborah Crawford VP, IR
Mark Zuckerberg CEO
Sheryl Sandberg COO
Dave Wehner CFO
Eric Sheridan UBS
Brian Nowak Morgan Stanley
Justin Post Bank of America
Ross Sandler Barclays
Doug Anmuth JP Morgan
Youssef Squali SunTrust
Heather Bellini Goldman Sachs
Mark Mahaney RBC
Mark Shmulik Bernstein
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 Second Quarter 2020 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. will call This Instructions] be recorded. [Operator much. very Thanks Ms. Relations, Deborah begin. Investor Crawford, Vice President Facebook’s you may of

Deborah Crawford

Good and you. conference Thank afternoon call. XXXX second earnings quarter welcome to Facebook’s

Sheryl results Joining Mark discuss today and our me Zuckerberg, Wehner, to 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. to press on release we at accompanying is earnings now, website The may release. During to to And of presentation the like are press turn investor included I’d in non‐GAAP investor.fb.com. measures A and present and over this non‐GAAP GAAP our reconciliation today’s call both call available financial an Mark.

Mark Zuckerberg

with businesses everyone month now There tools okay our than to using especially thanks compared start. what use X.X joining and And to every a million the for hope quarter connect than and doing I are us, for stay Thanks. expected billion more staying us services to was our you’re all today. XXX strong customers. healthy. This more we connected, people who at

business active than X advertisers shifted as our We many across also had online. services million more their

world an the yesterday, said industry As the and we Products I tech build better improved have changed lives. American success people’s for is story. the

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election. X to our in help Information number these Voting goal register and XXXX. is million to have help we vote vote voting. history, register to voting links the Center discussing register are drive attaching from posts is the this a official post of that or started already what We’ve of regardless goal will This information be built people candidates voting political in We information to our saying. double and and American helped candidates And to largest in people Americans to XXXX any

join officials our product to around how currently we and I’ve on adopted policies platforms We’re line a any remove April, one they been and with a parents future reality. information building Kids priorities here might all. going the messaging -- and of about the product for ways even an Quest, lot enabling in private keep account or including in the Rooms already we our VR stopping increase policies able computing our we local We With interference, and hardware voting launched XXX quarter all has teams this remotely. device look And this period May, We Portal world virtual considering and which take. from as around and platform, voter ecosystem. people our Messenger us We’ve have an also additional to and partner to already don’t safely with AR have And you usage to quarter saw Room commerce, to false broadened our Messenger helping friendships on last to augmented the apps, continuing focus suppression. leading in on, the up we much proactive other if to territories, our this make better, are can businesses than and impressed steps election around preserve their sales removing in and elections. election have products announced expanded now of new a children’s new building more getting across countries and at been by small any progress

doing Congress I’ll to told partners improve who on work, else at the now, yesterday, and everyone and we this Sheryl. journey they is build our to of over of I all is us. I’m and this thankful I’m it lives. to people’s As services And everyone hand with who how proud Facebook important

Sheryl Sandberg

but Thanks to not everyone Facebook from core voice people hate. mean hi, spread acceptable stands building heard we it about never want It’s We not. for is Mark have. to to firmly I it’s a speech. Mark, make Being said that hate and against where what don’t and can start benefit mission, their platform by hate. does our on everyone.

advertisers want be to don’t want it. our to users and with associated Our don’t see it

practices. that transparent We’ve pioneer content speech For generally, dollars being on made our spent proactive faster become A we’ve and in to of greater and civil their work integrity listen this of artificial media and, these an of is published the rights European to more organizers real years, with platform We’ve this to more two-year other acts but platforms. progress audit. made find this and remove audit a the using from remove to month, in concerns, first of because study our independent Earlier review than major thing a investments services working Facebook we advertisers to to to other that leaders to hateful many we finished. ways, are every not products civil we’ve of scale. It’s and never it and real billions because ads to is enforcement. of challenge, the civil at rights percentage and industry We do. rights boycott in impact from day pressure off progress social we’ve hate removes kind, of our more we and the technology intelligence this our right and content and teams and company internet recent clear are hateful protect undertake of the we Commission on and have our the shows led met in do, lot a paying an were meet but the the

want own hit we flat are seeing just weather I around talk of in through public June. period. we people storm. recovery day online health weeks support We are in they this to and to transition the supporting a saw revenue first economic growth pandemic as we business few businesses seeing that an has this After every May and are and also order our businesses but world a businesses how in what considerable working the is April, in to small crisis, hard. difficult not about The crisis year-over-year

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OECD, a Now Report, in a realize and business of sobering digital scale channels paints Global Business online. reported countries, earning month, small of XX majority partnership published our their it facing, the first more leaders State Bank more more of to but the across a Small of have at with based least and transformation data more be The countries. the businesses picture In one-third are World This XX,XXX minimum survey the days. digital of sales the in witnessing. they businesses of struggle XX% points of to than also than we on are previous we of XX SMBs the from

businesses in in Anyone for minutes. can to we’ve businesses economy. this That digital is years, a increasingly Over invested tools the on digital-first free and or Along storefront setup mass paid help Facebook just personalized Instagram free why use in small now for lifeline especially businesses, million than our afford who tools, broad month. aimed more our can’t audiences. tools free a with businesses at campaigns is XXX every advertising

important owner people’s this or our stores Taranto their For reach just protects experience virtual into walking privacy social and interested reimagine X use are Nicola In physically products, now today’s that to shop dollars, measurable restaurants, to audiences creative than to businesses economy, aren’t a Italian than this few in million more distancing produces Due and advertisers restrictions, their a we and when get enable coffee a look platforms what results. way customers could coffee like. and ever. struggling had is more in

times used sales personalized curbside targeted and with in It’s he customer ad With his is XX pandemic, of and at increase This coffee their a XXx of saw of type the of he a focus stores saw pivot. XX-XX not Instagram and onset sales furnishing on to attributable with is ad home small the to its drive people At Facebook. they used miles ads to promoted possible the within and XX return ads help free store sales, businesses adults to X in XX that help WhatsApp, times and acquisition result, them spend in on home Kirkland’s, pickup. to the within only the miles U.S., Facebook that shifted online as ads, Facebook, interested of delivery online a retailer personalized directly these return have spend. and a just

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our use have XX share the launched skills and to resources, Resource program Hub to whether tools more in have Since rebuilding need people advice they owners to hear not Summer million to tuned effectively. also share tips March, since over We and practical in have then In than digital even more launch, strengthening training XX for services. visited. to ensure June we business our people then, free or and launched our of business. million for Support businesses, use these their We Business

they Black-owned serve pandemic. for million generations, also the businesses In hit addition told that In need they interest have amount hardest huge in And Last applications we training, U.S. and us Black-owned systemic direct economic they by of world. a enormous creators, the opened so a the know community financial the program we Black seen we $XXX and mid-March Black around help. announced from month, businesses, grant businesses businesses small Black faced are have have help million have since announced of investment facing the and we been small the an $XXX for to we businesses, barriers challenges. tools in program, impact additional to nonprofits

at year spend least Our set thereafter. on goal diverse a every and next billion is suppliers grant $X year to program top with we previously of

to marketing with spend agencies million is and The COVID-XX construction facilities least crisis lasting to $XXX longer and As hoped annually at part Black-owned suppliers, than everyone more. this, from expected. we’ll of

that to help our storm to am We to I weather give the I who time, acutely real to us committed valuable responsibility progress and in and teams difference the hold launching continue that who the we want by this accountable connected are transition our to saying and the products most world incredible aware businesses to grateful digital people the how continue of us are turbulent keep economy. have issues a deeply on making around feedback and to during make partners to close new and lives. people’s to matter

Now, here’s Dave.

Dave Wehner

good Thanks everyone. afternoon Sheryl and

uncertain challenging in around At environment in COVID-XX. world. to same accelerated is We continue and the participation are we operate and digital alleviate the an Facebook associated the helping with economic challenges seeing time, economy, the

these are through to support trying We pleased times. businesses and very people

Turning our now results. to

and QX growth the Our reflected pandemic. the of engagement engagement increased metrics impact due to

to XXX compared DAUs million in one by X.X represented basis. of at X.XX last people users on billion grew reflect website. used details itself QX we that on last are least measures that expected, Note as XX% from I to continued billion we at will certain shelter-in-place June. slides June, least included with survey X.X monthly people and the active our services as new of of detail improvements. In monthly daily MAUs world. to eased grow billion, However, these Facebook up that IR or Further have our normalization more users our in approximately user on approximately the XX% of XX% approximately services the Family used the provide a year. data are X.X estimate billion recent around year. active seeing and a a basis, daily metrics in reaching compared outlook. methodology signs earnings one

basis. QX QX $XXX up remained or would Had XX% was been revenue year, to up basis. with ad XX% $XX.X higher. on constant XX% foreign a rates revenue have last the a total billion, XX% of on QX Turning total million constant exchange currency revenue now constant financials. or was $XX.X currency billion,

As in April. Sheryl and the quarter mentioned, was June to ad revenue growth May in relative stronger

activity economic strength leverage of primarily a advertisers from and who ad lifeline has time new a activity both during when offline existing direct verticals, been saw formats. particular been Facebook curtailed. and of response online we terms commerce our has In services

by leveraged world Our to medium driven growth small was businesses the platforms around and primarily sized our advertising customers. connect who with

challenging base. which Canada, growth a basis, our & XX% macroeconomic among we respectively. regional As user to in ad ago. than increased a currency top and well XX%, revenue, percentage as our which ad foreign diversification headwinds. continue QX, and X% a revenue is advertiser Europe XX%, see XXX of our strongest Rest In World lower declined X%, was and a US was advertisers On represented grew by result, year of as conditions Asia-Pacific, impacted

Other volume Turning News across decline XX%. impressions and by and pricing in ad served of driven per now to XX% price engagement Similar average by and of $XXX to in Facebook of our the impressions compared increased year-over-year due although XX%, ad price the latter Oculus quarter. growth to average per products. million, last was last was pandemic, increased metrics. In product The number Mobile economic impact the we Portal our and the price saw the sales QX, total to year. primarily up Feed, the services to ad was primarily the trends changes of improve largely quarter, attributable driven revenue half decreased in

$XX.X up to billion, basis. expenses were Turning QX reported X% a on expenses. total now

the expenses. $X billion total the Excluding were factor expenses settlement driven deceleration growth percentage-point like QX expenses sales driven was primarily to last consumer and quarter well up trends first people-related year-over-year, primarily driven of legal expense depreciation marketing and By products core The of a in our AR/VR; our R&D expense investments data as by to that as year biggest and of driven worked home. in the in the notably higher events XXXX, primarily to entirely from an from our center related from item, by increased finally, as growth our efforts, the XX%, revenue almost primarily and XX%, decline related grew the of spend; with grew XX%, were amenities we costs FTC innovation grew expense XX% compared deceleration recorded XX XX%, line employees by as QX. follows: FTC, in marketing; QX travel, Cost G&A by in excluding

As strongest new Mark functions. future. XX% to for in net ever hiring over the X,XXX primarily services we We technical ended with the up downturn products quarter in hires, to mentioned, had the full-time We in over year-over-year. build adding throughout employees, economic continued invest order and our quarter XX,XXX QX,

are billion, pleased income ability our We in and representing Operating $X margin. with onboard, talent environment. was recruit, XX% operating to a retain this

Our tax rate was a driven servers, year, office XX%. that centers, quarter of Net primarily due the income shelter-in-place was expenditures $X.X and for half to billion infrastructure. last or center the to in in $X.X were is this a measures. data of buildings, construction pause $X.XX roughly to investments due network per share. billion Capital XX% Note decline data by compared

and inaugural Limited Report, and stock billion impact the committed our XXX% construction since We paid in earlier website. renewable In investments. approximately environmental minimizing data cash July, common A Class in our is settlement supported to efforts noted purchased data Facebook’s quarter Illinois of billion was Free available in and, Sustainability will by $X.X billion as in was of was center published which In proper be with previously our million investment Sustainability our We have We resumed that cash $X billion the $XXX Jio announced remain cash. in this is reminder, energy. safety center a QX which but our and with we place. precautions month, QX, in flow on we paid Platforms and net $X.X a this as we $XX.X ended FTC in expensed XXXX. closed new

the outlook. Turning now to

eased seeing engagement mentioned normalization are higher. world, in signs is we where growth the penetration shelter-in-place and as developed measures user have in particularly As of markets Facebook’s I earlier, around

approximately QX. as or ease, weeks QX to shelter-in-place expect most forward, ad to of Looking of was July, our Facebook in restrictions revenue we XX%. and down slightly flat with In growth the rate growth continue MAUs regions ad of be three QX year-over-year revenue in number first our DAUs to rate in-line the compared

to spend We be our headwinds pace is Act, and platforms expect QX impact ad some recent the boycott the second, as pausing the progresses. factors year-over-year First, our this: related on including engagement be There anticipate expectation mobile ad growth recovery the regulation, including full related lastly, macroeconomic of third, the to Privacy changes and trends; of continued this to which revenue additional reopen; in similar operating performance. economic to as that the as Consumer rate will normalize quarter to several are for from the and current July surge stimulus; of contributing prospects the uncertainty community regions in roughly which headwinds as reflected the such July our certain expected from impact well to targeting California advertisers year will as we increasingly measurement, platforms, significant

now expenses. to Turning

$XX to prior $XX to in $XX slightly the of billion our range billion, billion narrowed range in XXXX billion. from $XX expenses to expect total be We of

range, approximately earlier construction billion expected. to capital $XX We billion, of expect [$XX high billion] billion to our (sic) expenditures $XX end resumed center to than as the previous have data $XX be efforts we billion at $XX

uncertainty equipment. of on deal and our great to construct remains full-year capital expenditures the our how impacts a will centers depend data ability outlook, our However, in and pandemic refresh

Turning to now tax.

We expect in results. our financial see our rate full-year to the in we our may tax XXXX although on rate depending mid-teens, quarterly be fluctuations

these businesses are role Mike, call of times. that during helping in open have online played consumers With connected role that for during proud we and has up people the keeping the that, We let’s played the the crisis COVID challenging reach in Facebook questions.

Operator

We open Instructions]. the for [Operator lines session. question-and-answer

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

Eric Sheridan

and Thank if taking the the all color much Maybe for you And I thanks so can. for two question. the commentary.

initiatives even want back sort Thanks we what of from for broadly think platform, the that of quick the initiatives the accomplish Just either on advertising sort In advertising is launch looking of out in terms investments How hear more accomplish bringing side. direct that quickly trends on the to over part the to We outside or the you as and maybe are the And more in understand e-commerce of still existing building and to should want be to terms and about so blocks of one How be numbers. headwind announcement the Shops, some pre-COVID merchants look the about you are half? should Facebook medium platform excitement verticals globally? much maybe to recovery around for to long-term, all we of what much. to a what might one of sellers in advertising, sort then, and about continue maybe key the on the the forward pathway the response brand second for the improving levels. current brand advertising environment? and headwind the platform

Mark Zuckerberg

take the then take -- second take second probably can can and first the one. Sheryl the I Yes. part,

terms of products. of we’re in big the small businesses milestones In types focused commerce, two for mostly on

of And is a and The to catalog them. that started start, to we then you’ll shop to so a be any better. able shops is being across small transactions the broadly that will across natural all they’re maybe buy advertising up And of than services driving what their all way Instagram from sales which something someone will the and through first a to to the rolling lot that a across sales. basically across card be consumer will be doing connect have in out a in put year. any at better able Shops, this stored, the follow-on business more There go bring inspiring experience Facebook to value able apps. to with to make is transact It down their do to funnel allows of up of eventually be all a one able of convert you you’ll for top businesses the also Facebook the place, we’re Pay building apps, credit and be it shop and your small easier

to their a more that going that’s So, soon. and and on continue metrics to share lot scaling

and over business seeing of about seeing quite We significant and term, area it’s we’re is be excited going commerce. a are that messenger, lot developing which and start, over think to more there people direct build clicks especially the WhatsApp I we’re WhatsApp. than ads, have already as that WhatsApp that can But, that is on payments in working successful businesses and in that in the trend. meaningful. that probably Messenger as we’re a And we’re Messenger and get business business a also do portion really But But offer messaging, or that. able will a hoped up only Facebook that other we’d to them Instagram, even around in as The out think important, been customers’ attention and basically especially what I and think, where places, they and across grow to in just more there messaging conduct messaging I thread commerce allow way grow roll we’re medium countries. ramping to that these particularly a API of to well. small their I’m will as And the

noting, opening worth business, part Small It’s focused remarks, not really really we’re that areas e-commerce. the this is two large the on are on my of individual said focused biggest our like in small the are businesses I entrepreneurs. businesses, primarily those So, businesses.

course, customers is we as around our small be using the reach are we we’re serving or what to investors doing But, if the of of want And everyone. serve the all to folks that that to business as way and really enabling about them about in different Of to are those anyone grow, going business, or create things towards are jobs businesses. our these to thinking geared accurate you world. we want too. analysts We be platform think do

Sheryl Sandberg

talk I brand the in about trends advertising. can

think, is are and advertisers, large what measurable small, in many really just for years results. seen, this that but interested quarter, we’ve I not

we offer. I the thing that’s think, that’s to come And best where people us.

I do think think But brand see are measurable sometimes certainly, on both, large campaigns. advertisers And interested advertisers as and often small of we large our large advertisers increasingly platform in results. brand advertisers.

in audience ads when marketer work. ROI of measurable to result, think terms to a the better user the driving specific they end interested We And are to they’re they and more the be the personalized. experience both of tend a seeing the we provide better also believe that that and advertising more they’re targeted more something I terms a more in, in the for

much you is different And of definitely take. that response towards, trend while lot seeing actions in a definitely offer any our you It’s question to that not response, kind someone and direct a driving result. of And it’s might a anymore. so, what just this but continues. we’re for want than said trend direct brand more important has And measurable business, been is we and

Operator

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

Brian Nowak

India. for for Thanks for first question. for I two. One my one Mark, Dave. the on one’s one taking have Mark,

base not any working employee years. of You you’re us more pain give to the in remote of puts of SMB vision that us I remote maybe us for make solving, than on going the there talking as to create really Maybe but XX% workforce? about investments from Dave, years there. sort And talk quantify, talk of focused takes understand of couple about to series more need costs working in a potentially you’re Facebook? of to into the to about people product to long-term the then, larger X the just the math where XX and next you could secondly, areas potential internally in efficiency like your offering real Thanks. points, sort higher well you made consumer and for some a a as seems see business or investments last your most for it

Mark Zuckerberg

India as really to there’s there. in with it a that. Jio to as expanding in was about we’re That talking opportunity excited other businesses individuals well. and India, and huge no onto businesses part the out India But, of to more India in It’s across question. Sure. buy payments. a sell the is to around small we And to planning countries enable India messaging we’re Jio WhatsApp, in there. about and folks small and on-boarded WhatsApp. that with A commerce there, largest want doubt take And once what that be starts is will can serving A thousands grow well fastest just WhatsApp, India, I we’re huge there’s with we do on very already. partnership things and of of that of it big by opportunity. have enabling through excited opportunities our the to And It get one country connected community very of We the that. wire opportunity up to we’re about [indiscernible] enable size growing businesses to India the help to should the prove commerce. be business use especially people I that lot

work we Before about I on just people. I’ll to hand talented us remote culturally it that remote will allow talk why think over to that work, Dave more principle, to shifting to it more reason is that the the add attract we’re

this cost doing saving We’re not primarily a measure. as

So, about how we a his clear that’s this. play Dave analysis tell there. primary bit talk a the that not can I really that we’re goal think, have But, I picture you of But, can out. might don’t how approaching of

Dave Wehner

pool, trying more a talent Yes. which Mark, grow going say I we’re that’s headcount. thing ultimately Brian. greater is with opportunity to was access give to us main might to to what consistent The

greater the people there have we sense from. in there’s think, an would recruit pool that’s addition in I I we that of could a So, to cost that think effect

think offices thing and travel some savings to to sites offset that’s might things and office like, be to about. on I collaborate that’s bring be then, to effectively. and able and people to one potentially other And but So, be the think able into amenities yes, off more for there by

know don’t out the that. takes and we going to exactly where on are So come puts

Operator

next from of Bank America. question Post Your comes Justin from

Justin Post

one could longer ask Great. Maybe I shorter term term. one and

really XX% the the that five talked business talk obviously Apple a gel you’re Could little contribute comps. idea, like Messaging or I half the about longer Asia had detail, some the quarter more aware changes And any or if to and can four some something Thank the July You years? or two and comments. for starts three for believe of feel that years how And is Do materialize? ad ago, of in same about you. on that you You’ve positive to Mark, that be could then, second in term, your guided about you to the impact business? revenues. and in especially you that starting potential headwinds

Dave Wehner

I’ll there, Okay. first the Justin. take one

there’s mean, the that important be I going obviously So, a are factors in second half. few to

do the our areas called subsequent don’t how probably is And, in know the to don’t stimulus that end of could the decreases like. And that that economic of side Act, extent is One precisely and business. extent economic we through to e-commerce. for of will out look macro some lingers, we for the in power things, overall we current but know applying the at was consumer things that we instance purchasing the CARES recession going climate which to future and what the expiring stimulus July, advertisers is impact know stimulus to like the develop,

-- plays that how to see that have out. So, we’ll

in specifically on iOS that, did as operating mobile mind. latest platforms, the and correctly we identified, announcement regarding specifically call changes addition, XX In you Apple with out

in for in So, pronounced rollout this and begins a it given is QX. the will have impact of but one of is outlook QX, the our factors in really QX that more late included beyond,

the us rest but they’ll changes app the We’re still using like look industry, of very these ads going Facebook for it make on trying to understand developers and the to will it’s harder and and what others to impact how and elsewhere. least, grow

So is concerned for will cut growth lifeline it is essential our clients policies are performance, a in on when asking But, aggressive so business COVID. are and their maintain that a and time for advertising that us we’re small working small to platform and lifeline are how it. at a targeted Facebook businesses, ads recovery. time of that we especially And view

Operator

from comes Ross from question next Sandler Your Barclays.

Mark Zuckerberg

about I talked that talk about Okay. -- can here, I call. on it’s the so basically I’ve the messaging guess, levers business. this It’s overall, far

little up is a number certainly longer WhatsApp for who in terms WhatsApp a would have get on a growing released I for of us That’s that. than building taken incredibly business countries. it’s businesses think, of block. hoped I app of payments The quickly, in number though, are to signed

all more shows as reasonably So, well the is ads API adoption businesses. inside well. happening open on direct-to-commerce for messaging And we’re than we’re in it’s more is that up quite But, are the well to growing the and very one interact the businesses. seeing there’s think small The use and becoming -- ads part Instagram that But, think with that pretty help we’re find certainly, and ecosystem connect the businesses focused just revenue side to and with. revenue Facebook the we’re going that pretty kind But, interact think, helping for excited apps. can nonetheless. grow happening the comes and that messaging. on that’s them that’s people sure of platform. valuable registering as seeing part I click-to-messaging in that of want I the the of I then I useful they where broader all that’s to think we and about friends us. making of individuals, businesses Continue -- be that they all Increasingly, that. customers

Operator

Barclays. from next question comes Your Sandler Ross from

Ross Sandler

Great.

on Just SMB commentary. follow-up the a

the we primary the So, growth, Dave, XXX driver years think, ago. appreciate XX% and that you was I top mix XX%, four versus mentioned that to of down

a little I with counterintuitive been going many COVID. failures the like SMB steadily. seems guess, that’s so down side, business it with coming So, on it’s

that’s could would guys buyer going what’s about, Any in penetration SMBs from SMBs the color the be penetration there current in already helpful. million $XX just or you it of driving in Facebook, buyer resurgence is growth that terms environment? ad the on talk the So, of on, --

Sheryl Sandberg

Yes.

both. think of lot are certainly right But When it’s businesses online. to you’re think I same pivot struggling. the you about businesses SMBs, that at have a time,

We advertisers. And businesses updated we free over over so, now on X numbers. overall And tools. million our using have our have call, million this now XXX we

curbside increasingly aren’t to have seeing much, people we’re but all online, have to shipping. sizes, customers as into like ways pickup, stores to sign of small businesses is walking businesses new up like including what deliver So, products, find that

around online. developed a any various moving even this, in a like website see you States, increasingly are even of And they lot but having kind. world, United of So, not before markets businesses the the

you place, free. set minutes. can up set storefront. fixed a website, a become digital a It’s It’s we’ve up your So,

you’ve do to it, used already how know a consumer. because as Instagram You Facebook or

more advertisers. better businesses acceleration crisis helped all more think that we’re it if small help there, at with And for in on we’re seeing we businesses seeing play the all but It’s world seeing and just doing role I and growth businesses. time we’ve are coronavirus migrate and a us, not time. that more online, migration the just e-commerce, very you products for online. find offline. And is this personalized the verticals something your The but on really around become look And ads seen using is So, proud things are just to done drive can a This to making things obviously more help rely people, trend who to drive. things very important we’re we’ve online long it happen of is job migration out are this than of that of of be completely an that acceleration continuing the quickly, the are more the this. but in really interested for and

Operator

Anmuth of comes next line from Morgan. JP Doug from Our question the

Doug Anmuth

around, it’s I there? fees dollars in efforts do to And resolved know, advertising you resistance time, Thanks. still of on hoping that incremental I you then but know you markets? some expect obviously get How e-commerce in your some a when you’ve India you then, could and the more just us just think Pay Facebook second, And commission over you’re And WhatsApp Shops, can does feedback sellers through deeper those wanted and Mark, I that topics. with use, was Sheryl, met with Brazil? little dig there. checkout? the comment on monetization seeing the of traction help or through understand about I

Sheryl Sandberg

So, screen full we is really you know, Shops in launched immersive as a Shops May, and storefront.

build to businesses drive So, it their enables discovery. product brand and

but the we all many what that online to we free on place Facebook think The Instagram you increasingly, for funnel, Shops businesses of drive exist funnel about help time, you done advertiser able helps If discovery. and they ways drive tools. But, great in the down down. top then, people with at are on we help And the purchase. side, small to we’re a the for a the we’ve and people through way also long really

We’re very it’s early. committed to how this. But, in of it’s terms going, very

businesses shops. these seeing nice are the and results who are from using people We

as focus this to Our product do, available it we’re getting businesses. make more experience going for right? is And and we more

contributes we obviously other look to actual or the online into and high experience and purchase going years loop If charged it any fees bottom-line on these business I really much people the the than And more as a can think the charge. migrating and on the and from that That’s funnel margin such have, we see focused any advertising all foreseeable businesses Facebook more you we dollars future, future is increasing might this several get the through of by incremental selling the have, the way closing experience services. important fees than can that online.

Operator

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

Mark Zuckerberg

much an those we’ll in There I that saying are wasn’t that And working countries Yes. and just optimistic move here. be to we’re regulators of was update forward. with able

longer we taking ideally than Although it’s like. would

Dave Wehner

We to go Okay. question, Mike. next can

Operator

from from SunTrust. comes next Youssef Your question Squali

Youssef Squali

is a Great. incredible and area online gaming Mark, in seeing topics you. Thank one bit. where engagement little growth Switching particular. streaming and we’re just

competitors different in over topic, market. that And Facebook the your is to big is may of kind monetize Sheryl it time? third basically that place mostly Twitch time gamers become you the over on You to It is do third your Facebook advertising? What How Is Instagram. value guys from of third about proposition it, recently leg YouTube? talked largest stool, just as firmly got Mixer Microsoft. and looks after relative revenue now that gaming in and it conceivable a like source Thanks.

Mark Zuckerberg

creators So, that’s what and community. like kinds who And well. all the true doing in for video, are is posting content proposition as we’re value of Watch

like A ones distributing though great for are to Twitch products or lot a you’re also streaming. with those a are something channels content, up in just community other products or just is YouTube that, people but and building is able where which communicate not ways, even harder Our that you’re number to do on a of

lot that. seeing of people on gaming. appreciate A that we’re So,

We’re video also lot able it people. to and get to the distribute a of

that So, that be going part with important future. is overall agree is gaming to working increasingly well, too. the in you I

gaming investment independent around of part of exciting area a where developers very studios the And other some and have work a The developers virtual that’s we’ve area, course, reality large seeing where both and large is the we that increasingly big use there. AAA we’re in-house and as augmented of in acquired from the well.

area. focusing going So, we’re to a continue I gaming. that on agree that’s big

Dave Wehner

to continues saw Yes. that for in when in us quarter We from Youssef growth in advertising. second the would prices demand especially top advertisers. vertical be add of beginning lower the And our we saw strong terms lot a the a And I in the option. of quarter, just five of gaming were gaming

option a, think, filling a effective so, good where is very And in. was it of I at example the

the world. around game to developers important be continue funnel we of the So, discovery top for

Operator

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

Heather Bellini

Great. commentary Thank couple you wondering so question. taking -- Dave, just but a to was great if for been about Most them could you the ones. answered, just think much quick us some QX. have of gave you I

for you thank that. So,

the in end of kind with you think could share just year reasons uncertainty how us Just mentioned, to into on wondering for given also, at July? any if to on half us QX? qualitatively of kind And you about with all quarter want trends share even the the you of pricing the the of second the comments seasonality and

Dave Wehner

the August about. to any we macroeconomic that hard part I really and the to to to I be less know And I is going It’s thing think a of Heather. September, be look much hard look question, situation mean, here, into to Yes. like. to the Hey, to your that’s going second think looking given to going with far into get just what QX certainty don’t think future. predict think big I it’s

for continue I macro the QX, second of has industry strength go e-commerce quarter. really we be us as the important, will the been theme to into given that think, whole through e-commerce and -- big clearly,

the to So, fourth I season. extent play as holiday into some would well with the that expect quarter

trends, see improve quarter. terms did the we of pricing pricing In through

early much in So, quarter, weaker. the demand was

environment. low advantage And games, before prices as saw like we the with advertisers e-commerce pricing throughout improved mentioned from the script, those I throughout and the it saw, we world. began as prices But, we So, into saw we be, to metrics backfill to more. of a depressed continues back saw coming came providers as the then, well. it others for continues of in price quarter, as some in advertisers And depressed taking noted, some just the volume Youssef, auction be pull as and winning

And that. about so, from macroeconomic obviously, perspective, we’re a concerned just

we we I As got to That -- challenging a the I QX, further get which more changes, IDFA well. into as well, some headwinds. year be we’ve could advertising, believe given effects as targeting be point the, That for to instance, will will of in want do prove the targeting think and Apple measurement out, pronounced pricing headwind.

Operator

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

Mark Mahaney

I out, solution there’s there how come addressing you’ve -- content, are about not didn’t Mark, whether their you’ve was address not issues. sizable. solutions trying wanted concerns reasonable do be be to you about think not the think numbers this said that moderate I thoughts to it labeling, it And, to ask are But, the How you’ve things material, that like of pretty the the been concerns? will know I is much stick I too a some in and ask on think And the to efficient that -- your role. you know with could boycott the clear about, issues, -- political that quickly in trying the to you I hard on boycott relatively advertising. you introduced then, of talked the addressing but past, participants? want

reasonable tell, Thanks online. lot. about that to of just offers different political the a a back see And Why targeting, I as ad part do of boost the way you talking far to think, cetera. the in from a et campaigns? about Facebook I ad as should billion couple wouldn’t districts, political We’re can be year revenue best ad

Sheryl Sandberg

ads I talk boycott. about can the

And an interesting our agree in ourselves true hate that with with and don’t remarks, think we want many we And never companies it’s it. platforms, long at they and time it’s completely when think boycott. lead situation from against finding a stand transparency that’s So, don’t I this because don’t all execution. want We it. are We it. we’ve hate industry been it. working And benefit a for our ways, want to to in because We be have. we boycotted, on said here. not associated see my oftentimes don’t such we don’t in Advertisers agree find firmly I to in speech. get Users as at really I to better

reasons We’re or keep really pressure, at because hard working to advertiser not it’s going the financial do. to this, right for thing

Mark and work weeks We terms had to us. rights few meeting with them are it. of resolve continue talk ago. In with how boycotting that to organizations we We and across the we civil a board worked have

to to our MRC, and But, particularly. work be definitions improvements oversight we’ll can other working auditor for industry. able address helpful, with and continue We concerns. with to GARM to rights we’re optimistic organizations, help independent also safety that brand many as come we’re with really as be really with GARM them the working make. is to us industry that work I to partner on on civil to standards the us advertiser groups rights closely And civil we’re well think trying

to MRC the independent of by of end Media And that undertaking working Rating also be an We’re and share Council, audit. we’ll able with the scope safety QX. brand the the

Dave Wehner

political diversified And ads. part large a it’s and are of just on and -- just political overall just such is we Dave, the a have landscape, the years. small election think, Mark advertising advertising And I ads business, even fact in

of So, trends political and normalization on measurement. my targeting COVID our terms that part just of QX ease, in point macroeconomic of commentary. including outlined advertising we’ve factors boycott, standard restrictions the then I in and comments factored again, would in there, to headwinds things the XXXX backdrop as headwinds, out engagement I And

Deborah Crawford

we time have for Operator, question. one last

Operator

question last Mark of the Shmulik Your comes line from Bernstein.

Mark Shmulik

Yes. for question. Hi. Thanks the taking

think looks growing share the that and rest due X you growth. Any XX like? world to you. can incremental quarter can of or first, and about Thank But, million called as little this the Any think to we So, the there what date drove that the I I declined been the secondly, in that then, business That’s one astounding you know, that just about know was bit. of users, of number structural headwinds. million. color the we’ve know you with I WhatsApp out share growth resolved some if what talked color, pretty on the to And last July, growth? that’s kind was as you

Dave Wehner

I part, world. I first can take of the the rest on second guess,

what I you’ve on weakness, a in quite So, of got terms rest there’s going few think world of factors.

you’ve just First, got foreign in particularly currency Brazil. places like headwinds,

of decline that the in in played a And rest so world. year-over-year role

and on exposure, verticals, things Secondly, with to, of dependent brand. less online traditional sort And well; online person And exposed more and in like the conversions call interactions, like it’s verticals things lower COVID, so. ultimately rest games. e-commerce a and performed has I’d like, retail of what those and world

those gave could played that think finally, the opposed world. of to developing rest whether stimulus clear developed also strength world. world impacted part and more not developed it the than world, also I well. it’s rest And the be world then, in So, as the into relative that markets of the rather more strength of as in But, in

Mark Zuckerberg

think WhatsApp business their the And between their mean, separation additional for business with people account connect some to WhatsApp demand small in able that I of a be and you I ton interact bit have growth And good to driving a WhatsApp that tools business personal features of And it’s on businesses. really product and the business. owners organic to people manage for I execution. what’s through a particular better. in simple with accounts, there’s just to some and and get think

this a that think for that for and to features to but have about talked and up different for us the think And small of about I we I that’s next one that we quite opportunities talking the be all but we long ahead world. of which that growing also we’re ahead around think on commerce entrepreneurs call, have fundamental continue people a So, And will build years, is while roadmap now. pretty that the serving been on the going focused exciting building enabling businesses few well.

at to get excited it. We’re

Deborah Crawford

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

Operator

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

You disconnect your may lines. no