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FB Meta Platforms

Participants
Deborah Crawford VP, IR
Mark Zuckerberg CEO
Sheryl Sandberg COO
Dave Wehner CFO
Brian Nowak Morgan Stanley
Doug Anmuth JP Morgan
Eric Sheridan UBS
Justin Post Bank of America
Ross Sandler Barclays
Colin Sebastian Baird
Youssef Squali Truist Securities
John Blackledge Cowen
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 Fourth Quarter and Full-Year 2020 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there’ll be a question-and-answer session. will call This Instructions] be recorded. [Operator very you much. Thank Ms. Investor Deborah begin. may Vice of Crawford, President Relations, you Facebook’s

Deborah Crawford

Thank afternoon full-year XXXX you. quarter earnings fourth Good conference and welcome call. Facebook’s to and

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

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

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

everyone staying Thanks joining healthy right. for hope all I All and us you are today. well.

Our community and the business end strong had a year. of

other many Those more stories opportunity. our sense use scale, the apart our sending nonprofits they’re our show customers of alone. much one at personal formed and that last million people than each role impact. each to we more us class through else home, businesses Groups COVID X.X apps tools helping keep but fundraising free and some XXX pickup. numbers played Teachers our $XXX are proud or now support let time. million reach saw to use small curbside each Local businesses causes I’m raise assignments for the bookstores create has for of stay shops are hard services customers. where turn are of to helping long-haulers coffee on of day, continued services know students WhatsApp. open continued in mostly hear where and are through the billion $X.X to. together to of and tools causes a to give relying businesses, there’s As to scary not come touch COVID people and experience people during through We and the COVID-related year, other to such Instagram people been billion for our what a including using economic in

a recent I’ve spent fair of about efforts. earnings our calls election amount time on integrity Now, talking

them So, as thank effort. largest part effort teams that history. involved to distribute And, involved ever want everyone easily our outside, according -- and length X our to today. we I’m not help out at goal going estimates, to do recent call to to effort with in our But, that information people voting to million to register I of in want discuss I surpassed vote largest the authoritative

building to So, messaging; private on ahead: four tools today, I’m specifically focus that small I’m commerce themes product going for excited year communities; for going platform. focus to businesses; and the work next about our I’m and computing on the

So, let’s start communities. with

that community build Now, the we one do. people that is things helping I think of can most important

our different we is through support. layers Our get social which multiple of social made fabric

there’s that And second a over help. I meet government and provide. participation where we new we the unfortunate the this most First, think a feel the decades. decline part can but something family. we And sense the communities interests, world, of have Then, safety and and That’s friends layer. belonging, have parts there’s explore finally, society then, individuals, purpose of been layer. grow then in an It’s of we people. isn’t as develop and we community alone, And we’re skills, that net can many last that in solve several personal

on of family, in billions communities grown same helped shares helping ago our community our condition people to new connected together. stay get lean we’ve who’ve they and that place meaningful can has that the and friends to few participate XXX from consider next knowledge give Facebook has And from and it, they lives. find support, health be and are joined on hear or to and a world the groups and there I years kids power now we This to than that people raising are from community navigate the moved people closer reflect that everyone groups, with that for people members them the a to million now mission more a all And, a to are meet this, found even meaningful and goal. updated people resources in So, to in people making situated. steadily Today, parenting build over or of time been group who bring time. group their who are people major local that

Our institutions. product and infrastructure this is focus feeds now full and message build to community community run boards to help that beyond develop people self-sustaining

websites. video provide groups community’s to raise to messaging, we’re things for chat, So, even exploring we’re that help tools span done support get different and own And and together ways people group funds, are hire that communities’ support people to term. including different sustainable help long for merchandise, fees operations communities donations, roles for their the to and build needed membership leaders building and

are on that way, to by not join, alone. that’s a if need to that this hate we’ve healthy focus things against in to removed may focused last been speech. also violate there of encourage a while as connect now. million or and our of that the And are shared with sure we that for something on they make break positive. One to we groups we people that But, So, had X that we taking communities groups even rules more September, do the And, want in down our that people we violence don’t like course, lot policies. than groups this, year continue is we

stopped for But, the And we and recommendations of we political tune works. and civic long-term, fine U.S. and So, how we’ve ahead groups down this discourage to the communities. temperature out continuing policy elections. for to And divisive while be keep that globally. work we’re the the of example, continuation a of plan and this to recommending now is doing turn groups in to political and we plan a for extend conversation clear, been to civic

also we reduce the we’re well. political amount that take newsfeed can Now, along content these steps considering same to of lines, in as currently

We’re enable be and still to political do working or to we’re this. people be course, can and going discussions, different organize through against be to ways And movements exactly from and groups with important grassroots to or if of in often want perspectives. helpful, engage learn that still people people they to. injustice there the can best ways out These clear, speaking

right these their that politics are of our we of So, hearing discussions and able be don’t is experience keep to we one want take fighting community want from to happening. that over pieces the to our now feedback top on people services. But,

communities, is bringing on year in continue being even together. going theme and focus going this force millions for helping people people more more for focus on to we’re of a to we’re that one healthy closer to So, participate

about messaging. Next, let’s talk private

about As like privately, growing enjoy and we’ve with connecting Messenger. communities digital connecting services social the equivalent Facebook discussed are in equivalent a and friends the of WhatsApp and a like before, while experiences apps fastest and room and square people Instagram, town digital of the and living

conversations So, we you the most re-imagine effort have, should up a built built why And it look minimum should your from using first. you’re a off stop disappear tools several most too, and choice bottom privacy principles. we and them. use. should to always ago and you stay modern have encrypted years you should matter amount that should that’s with And that private when be if that’s and should The what core end-to-end that done platform conversation. means reducing between and we is metadata you. that be they your build social important security conversations of A maintain social actors spam a services that And intimate to aspect a one-on-one services. sophisticated of what like, means privacy the bad these would over interactions kicked big we identified couple around of Safety be platform that to to

privacy. no possible data as where with our make across finally, store And only localization what, we on apps. rights in secure, human should weak continue and countries countries people’s messaging we we records it matter can should keep data we should as or know we opposing in So, interoperable

the are these that to that most think principles I matter Now, privacy people.

from that, people private people apps private, First we’re their the perspective, safety other the conversations if too. direction available. are Messenger stay after also about that in care care with And best WhatsApp this social and and heading and foremost, but convenience

Now, iMessage your apps which people’s iCloud. misleading. unless we largely disable messages messages. security But, often and Apple by Nutrition recently stores claims privacy called of are you have encrypted of focus released lot the that backups who than a that metadata privacy of make actual about non-end-to-end competitors Labels, so default, collect, on rather

the Apple ability messages. most governments people’s to have So, access and

clearly protecting that what people’s is when think most, So, it superior. comes matters to messages, I WhatsApp

seeing we preference used aspects And discuss for in business which more try gaining pre-installed and private see to it Now, that on business iMessage that use is our important comes most messaging of in increasingly they’ve and are also Apple’s we now, to apps I earnings services key as on depend is APIs every a is share their U.S. why are to the highlight strategies iPhone, I against competitors, and service one developers. calls other and of investors biggest and ecosystem, since with to us iMessage permissions, more it the understand, of linchpin think do want I these Apple

apps has apps including own. Apple no of targeted to our position growth incentive be to reach the small millions their their impacts work, to changes, businesses with use their regularly businesses every So, able ads. do interfere preference XX customers how dominant the many world, they the longer with of this upcoming with around which will other to and iOS And platform

I moves think against because we competitive Now, up foreseeable and And that this for say are that is this track people Apple important to the people, clearly the their doing understand interests. going this to may dynamic others but for be to future. they’re help

continue better battle, private services that services be succeed. an as messaging our much Now, to but uphill social just it need growing, is and to platforms our

other offering of started have around shipping long-term that are So, kicked to recently, to a throughout off encryption, year. best, efforts ephemerality, more right. interoperability, strengthening we the and of this these back, years All we couple and sure tools projects remain that a make of going shipping be number

So, commerce. let’s now, about talk

Our small more goal here made same is historically and to companies but the access urgent. only to of had pandemic this, it the business give access we’ve entrepreneur cared big to. always And have tools individual, about every that has kinds the

the could required or only that reach So, most of their large amounts businesses And often capacity be build advertising it storing data small in-house do. capabilities case used was companies and can’t to to have which targeted expensive to it analytics building it teams large to afford these and customers.

one so, these we often tools is of so for the most free. that I’m proud the of businesses to capabilities same build small that we And offer can things

so data, that’s from and millions had otherwise would of hear you you lot data efficiently. when when of say lots businesses customers. have doing are people no reach hundreds that do would that people connecting help sources, because this customers way of to to we hear reach now easy So, to services our have individually that’s help businesses them small a And of had say that of hold using we’re more

themselves, but times. a Now, small of lot this can’t, big companies businesses often do

So, we for do this them.

the you severely television that when hear and is we the we are people arguing only they’re think this is companies should really be untargeted ads, what where old So, disadvantaged a things of businesses small that shouldn’t regression these go capacity, have argue doing largest that I diminished. to days or for back competition

we’re business. million introduced every products businesses even XXX than select app. the the day, them businesses an as money. businesses, businesses, we the features buying phone also U.S. with then as Online WhatsApp in our eventually So, in message which to More And, we to account that provide Messenger it commerce and lets than business have so process people send better of Instagram making online lockdowns our on lot will And building help storefront need Carts And easier many WhatsApp a businesses all their catalogs, can the grab business more people businesses, need make to here. recently we’re support immediately, made and more set going of to Facebook to is tools and also a an and tools, a interact more that shop part order with important customers. and both, it new And message to the small creators a service. a a make seamless. once, and use saw people continued, as to as have transact Paid Checkout a up strategy WhatsApp they with businesses more more way We and well. customer their that to manage multiple Events for the expanded we’ve to a

businesses store they policy And manage would their process to So, we’re reflect hosting WhatsApp’s the using building to infrastructure, and we’re if service like. of of WhatsApp privacy these in tools secure terms chats experiences. let optional updating in our

and clarify to not does the seen. that with anyone’s friends some family. Now, confusion privacy change This update of messages we’ve

or end-to-end do messages will message encrypted, the our can’t it. so. And person the and we never will, on be we you these are say, hosted messages business of what unless means you if share to hear All that which to infrastructure, business chooses only chooses see

want everyone to private protect we the So, messages. go know we to, your that lengths to

this update moving to everyone to update are means. give time the of So, what we understand the date back

most XXXX. our building discuss work into of computing the about that next progress, is heading platform. I’m one the This areas excited let’s our Finally,

there that If or you platform with emerges PCs I every and our more technology just look browser-based in XX another and place. believe step this mobile. next computing, major ubiquitously delivers the is so, at that sense and that the really an with history then here computing of person of lives, And into integrates presence or computing, years the magical platform and naturally logical that mainframes immersive a you’re another new starting

anyone makes the headset. building there, this phones unlock dreamed more company I that available mainstream. in going at what we’re Quest with virtual Labs. mainstream Our first it a to This is could technology come experiences the the can’t I types designed at it’s virtual people towards embrace year, during it launched kid. Facebook best it’s of the so And many building about immersive that possible. is Facebook help pandemic. and as reality and in since been done X to has to think any reality people most to that Reality and deliver has to October jump before as I We social it We experience on and track see than be other out this great a that that And it. neither can was the many price especially so bring any other to And this, through

be their meet in-person, working We’re it workouts play to while or to colleagues to living when room friends can’t they in do they’re games together use seeing home. from with people with

was of this So, Quest the there is hot lot holiday one of year. gifts a reasons, the X

as future We’re a also to Right key I reality I’ve more show seeing ago. are this goals is this about for part here. twice few it future the are talked when glasses vision that’s virtual in XX results nearly amazing reality, of developers, long-term to be millions, quarters, that ecosystem quarter’s as In think growing building new a our too. but going this that comes the Augmented revenue of Oculus previous generating a many than and platform. developers experiences months now,

during way on we’ve and lives in on it working Luxottica. be the the especially when know more I back in collaboration underpin some we a and some are that these, into full yet our us. that put from of are now, expanding apart. to on that glimpse first over vaccines families for I XXXX technology That’s the going productivity. and the journey Portal with a innovating small you’re are partnership talk is product will first be that power or still office, hands But, year, internet the not Sheryl, we and year, our people And to be, opportunity, know can teams celebrate seen feeling the remote reality years away. all to has of investing ultimate when themes But foundational smart stay pair to what this to still more progress here, in going when unlock of deliver start presence, the improve in to that order to to we is I of hopeful pandemic, our excited We’re discussed will We launched normal when This glasses great Ray-Ban, of of personally available, business. what also do ahead with this widely focused keep role don’t again. lot a people written. the here going and our of holiday, a to is businesses. has and the to the proven bringing big And in virtual this workplace, for be Portal that unknowns. and about as connected, presence we’re features has story and the had grateful believe I’m technology been year can why in are

Sheryl Sandberg

online is during and our the continued and of a Like pandemic into hi, This safe as season. the healthy. was Mark, Mark, acceleration seen holiday hope the for everyone. I business everyone we’ve Thanks, commerce quarter strong

paid is growth businesses news many was and X% sales that holiday went for really and also U.S., up result and advertising. our November important. is well was difficult so QX of which XX% billion, that digital, two previous but years. pandemic, before up businesses succeed saw beyond for this investments brand in for well fastest revenue the to made Black started overnight, year-over-year National tools all Compared going to businesses, as while And and sustained struggling, was year sales over are expected that COVID the the spending We necessity. in QX earlier create a period reach customers. orders businesses years, were their still total regions December Friday businesses robust Retail to XX%. help Monday. a out many online. the good storefronts, online were our across had stronger years how year-over-year of as this rate new Even improvement holiday was an $XX.X is reported take a ways to strength In Our After spend and to period find a and longer. QX free Almost than figure in This retail. performance in The advertisers of digital Federation Cyber online performance increase,

many just expensive. app be small these companies, can a up For a and steps, difficult mobile website setting even or or

Our when their so First, running can tools struggling With paid to free for pandemic the how many what the teams do get business we businesses up these around asked help? and help world. they businesses online. problems the solve need need and and tools businesses hit, our we

ours do can help and simpler and effective, more can we build to them. new make ones what So, to we

knowhow the succeed. they to digital skills and Second, need

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voices year amplify stories? scale our to can their last and throughout So, We’ve the into tell questions QX. asking use these and been their we

the people pages online love Mark Shops their we it on we to our customers. new and like profiles Facebook businesses the and Events. interface and they find manage with Suite, the In for accelerated connect we’ve across Paid for presence products Business work or first, make of to and some their also launched our out talked On about easier brands tools to rolled businesses a new help to tools fall, Online manage apps.

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On Hispanic some businesses Latinx people black resources through members We skills training, shop the XXX of the X the included small of Facebook for events XX XXXX. members year. the Support our build U.S. Season the trainings resource across that by business second, with trainings to Elevate for We million a things the of reach and digital X out the XX-week created and to communities in one-stop resources This And community of through we hub, a year. in big countries program and tuning our with to for with businesses end holidays. prepare committed free throughout million million businesses Boost our did we to reach virtually help XXXX. and we’ve the reimagined in continued

people. Friday across seen with a live ways find from in people black the gift the On our of the million amplified the businesses to campaigns area, Friday the over others was one ever. created featuring local U.S. businesses businesses their pandemic, a is on of BuyBlack side to In twice holidays. of of campaign, after our that so BuyBlack we help show wanted the how example by even closed them QX XX my a black-owned We black third, at start the people voices favorite shop rate for U.S. the in great Facebook of products we businesses and

from something and of brand so businesses appeared rates. The show, One current traffic, grow worked City. but founder record owners is a and her became sales was Paola to days Friday businesses continue Redoux given featured small ever. BuyBlack vegan gave campaign on one the Its her of most the revenue we that York called New skincare and Grant successful Asia web lots important, able that’s unemployment Asia Business hard people, XXXX. she and struggle of more like even online, adapt hire and will have to in to

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here’s Now, Dave.

Dave Wehner

revenue off was Thanks, billion. to capping full as our solid for $XX strong XXXX grew Sheryl, QX business and good quarter, XX% afternoon, year a everyone. year a

been half significant have the improved at during see onset encouraged after headwinds We for second pandemic. the of our ads the the to year demand of facing

of the to reflect strength providing use millions we’re who the our services generate results the sales. consumers value and digital businesses and economy in reach ongoing to Our

least used least X.X December, daily million that our a one estimate used to approximately or at users usage a of that people Let’s billion begin services X.XX XX% In DAU million metrics. active in grew XX% Facebook basis. with COVID one continued peak we up last on as approximately represented community to XXX approximately people reached our outlook, year. of the at to year. X.X billion, daily monthly basis compared X billion on experienced normalize users year. compared X.X DAUs the monthly levels million Canada with or from our active MAUs earlier Consistent billion December. XX% declined U.S. in XXX last sequentially and and

growth year, $XXX shopping strongest the and driven season sales. ad revenue which The billion, strong up by are revenue both, holiday grew total of from on tailwinds; XX% user on Quest up grew X otherwise was constant growth Quest and increase basis. price unless and Facebook feed largely a by benefited by significantly a million, in X grew per basis. XXX% holiday ad Impression to XX%; of had was be to and currency number online of increased U.S. as financials. improvement advertising retail, XX%. driven QX exchange Europe, in revenue remained QX benefited geography total comparisons which driven been a the from XX% services launch. encouraged per average reception up and Instagram or constant basis, for growth our constant but served Turning shift benefited was Facebook have due Canada to on impressions with a last $XXX currency QX, was in foreign $XX.X ongoing In was billion, XX% currency XX% X%. QX currency price noted. revenue XX%, ad Stories. On primarily was commerce. XX%, a or Instagram. ad the a October average Pacific tailwind, its revenue mobile $XX.X year-over-year positive XX% the All increased The impacted revenue currency continues basis, the total Other We was by well of across ad by to Asia Rest since headwinds. would from improved rates been strong in as and world pricing We’ve million to lower.

up expenses. were year. last to now QX total Turning billion, $XX.X to expenses XX% compared

hardware specific in increased to to and XX%, hiring as consumer spend. primarily our cost by and driven core and In Marketing sales, investments increased hardware line XX%, efforts. by related driven core of partners. costs increased of by X%, terms payments R&D items, products marketing as and driven primarily hiring well revenue sales infrastructure Quest investments X

recorded to and XX,XXX the XXXX. decreased employees added lapped full-time the in related year, our XX,XXX settlement and We in year. of over compared G&A roles. product we XX% a past XX% last up to fourth of Lastly, with year charges the XX,XXX net In BIPA ended legal expenses as employees adding reached we the tech employees, goal quarter record

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

expenditures rate cash billion, Our and $X.X income in Net infrastructure. flow we billion marketable investments per the billion were $X.X XX%. network tax facilities with was or billion, ended was Free securities. office $XX $XX.X servers, Capital and was share. data $X.XX and centers, by quarter driven in cash

Class increase in our authorization of billion full common as repurchased remaining authorization. billion stock stock $X.X a billion A had XXst. we year, of $XX our our announced Today, the and For December we prior repurchase in $X.X

outlook. the to now Turning

playing broad out We We during continue pandemic. number business to from the our manage believe has crosscurrents in we through benefited face a of trends economic significant uncertainty as XXXX. two

sold half online shift our We in is demand The product second to the the online the in a commerce products our shift lower towards travel. XXXX, the tailwind and is verticals believe away in and first exposure like business our second verticals, consumer to advertising services. commerce; from via of given service these strength provided shifts ongoing to

in these Looking during as our early or one reversal will forward, to we negatively half of or could same of a in the a revenue by first of a the the moderation growth serve XXXX, be reduced demand At was pandemic. impacted period time, the that of both stages headwind lapping trends growth. advertising advertising

XXXX. in In will rates the the total revenue second remain year-over-year and year-over-year increasingly second modestly a result, we growth will year, stable which of periods of half rates. of expect significantly strong growth the accelerate we As first growth, in quarters pressure lap to or sequentially

more in regulatory landscape. platform includes notably iOS XXXX. the well also XX, of impact headwinds targeting face to expect as This We significant changes, ad evolving the as

remains in recent impact of first While see of European changes light also an the beginning iOS developments And closely in are industry, our we companies late the European the impact these monitoring progress. XX our potential transfers the would as to like operations of in is data uncertain, viability other expect on regulatory the we There developments. uncertainty transatlantic around timing continuing quarter.

Turning expenses. now to

and as the expect costs. infrastructure driven total range to as technical expenses in growth unchanged We talent our billion, in XXXX $XX in outlook. investments by prior product of This is be $XX continued billion to from well

expenditures range capital XXXX to office expect in infrastructure of to by to and continue We the driven servers, facilities. network be $XX billion, data $XX billion centers,

pandemic our on includes outlook spend impact construction due of efforts. from the Our that delayed to the was XXXX,

tax. to now Turning

challenges. businesses of adapt support full products in to our the new reliability up a unforeseen in that, the closing, of teens. the With our pleased reach call platforms expect maintain let’s use be to was questions. to millions a been of order and experiences, Mike, high for continue with year consumers. our introduced the XXXX We’ve environment services, unique XXXX our ability operating to open and In who deliver that to team’s tax number We rates

Operator

line Instructions] [Operator first Stanley. Nowak Your Morgan comes question of the from Brian from

Brian Nowak

my for question. two. Thanks taking I have

on one, or the I And outlook so in this Shopping out appreciate Mark that reverses. Dave, forward away expenditure consumer on shift the it encouraging could seen Sheryl, I from guess, I that the making second a either comment opportunity. is, as the question in Instagram as and or for building that the color you’ve commerce. products this talk about commentary. learnings progress in headwind toward give half, you’re one, you of signposts then, the of sort any for potentially sort curious far you be services first the confidence outlook to back appreciate was quantifiable The I

mentioned you advertisers. million I had think, last you XX quarter,

about bring have talk broaden segments advertiser missing, of to of more place Thanks. some us platform. think base on the in So, do advertisers to maybe initiatives that and to what of sort you sort services you’re the the of you

Sheryl Sandberg

Instagram to With always commerce and shopping place to products And, out on the Instagram our a for finding first. overall are and in all this efforts part in great taking way people we to shop built well. We as part we’ve services take as an very discover new I products that. the effort. other We’ve is purchase Shopping, a efforts shopping new can QX, launched tab that down of our see had. on to and discovery interested this think, from services. I But, been, checking people we funnel of are

experience. are nice to provide end uptick. a as having things find experience to early and businesses so people with ad seeing having really still good a good they they’re that we are and for. with We’re commerce our the can great And sure our products, user, we make products we always, think days. experience a the It’s But, looking want

Dave Wehner

is the looked the basically of spend was really record to like you the it’s on services Brian, We at that QX, spending it results year-over-year, the the we’ve that continued. years. XX BEA, Yes, Hey in there U.S. levels from consumer Dave. expect actually showed data that but surged don’t in while the look that when still data we for highest trend goods sort down have QX, or at

towards consumer business, products skew U.S. overall to more the in, or look our tends the instance, the relative overall it at you -- spend to If GDP the balance of for

think we overall we’re a just So, little to exposed more bit products.

towards service skew the in and to our products to -- continue would travel invest as be had in expectation But, improve have like in XXXX, areas sorry, to travel. we’ve exposure a we’ll We past. continue similar our

we’ll So, as for make investments more our well. relevant services products ad to make continue to

Operator

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

Doug Anmuth

you limited and impact few And of about the Facebook’s curious Thanks. For to offset targeting Dave view But, across tools you ability mode login things bit the has if and then you’re about you’re IDFA just the significant headwinds. through could thinking and we some over and changed other fan more new a mentioned thinking about APIs at how products. now data. your ad talk months? Just little how and conversion past on Sheryl, like all know the impact core just then,

Dave Wehner

Doug, I’ll take that.

has changed our in any on significant So, XX. think I don’t way iOS outlook

continue to our It’s prompt people to be that we’re personalized believe ads. third-party the for that asking going ads just providing will broader that to to in We a to deliver to limited be not data but view, a IDFA, use permission headwind as have than business. in

factored So, that’s expect true to or you’re going whether to using not. that’s and do that, be there rates high outlook. our IDFA into be And to out related we opt

expect the extent, iOS XX change, is is permissions. impact be, that of obviously, expect platform-wide the hasn’t will do and that impact at the adopt -- just But, mitigation that what to on later roll given have sometime And going and this the uncertain, expect because will through we about think some those is this When We QX. to be users clarity and timing more it out Apple as on go through to so we increasing in year impact point. might you a mitigations there everyone. us

in we mitigate to through going more conversion shops, initiatives businesses extent. that’s by providing time, so, click some like also help to messaging addition, to to opportunities over it hope And ads. And and on-site

iOS. network products, As advertising that past. have impact But, is the the to have explained to going a of the really on core business iOS it but significant impact, relates specifically -- on audience to size given the as on it’s our broader we the -- business network to in obviously, that’s audience

Operator

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

Eric Sheridan

there the as investments, you how content with the I see to of in tougher ‘XX about is see, the any sold based unlock you or different the And language there’s where little move identifying side on the it’s holiday hardware your up period, just follow Maybe about -- Doug’s about the a think against just I years? the opportunity about the question. if what And quantitatively Dave, two, severity us of some that’s you sense aligning the and obviously, can. opportunity, think coming of back you using What as we to the side key some do maybe you recently the if a maybe versus through give you’re for then, either Mark, application how the well. hardware, to in piece outcomes could the to comps or do the saw you’ll half of don’t on on can quite year, I Oculus investments know bit Sheryl back success When comments. of but out from of of degree the think through coming headwinds?

Mark Zuckerberg

I one. can take first the

started view build So, we immersive, augmented when and would virtual one virtual that and reality that kind that laid computing path reality, where we we for continuous to a it’s ecosystem working spatial, of on we part be basically knew presence. of that all first. out And practical --

that proud there. what to well, last Quest key do keep and is made to titles doing the goal and that X really of device yet, Like that VR developers the So, but that to believe product trying it no to do I’m working great device. on with value. the we now, we’ve mainstream I and there things been working which increased The hand do quite the shipping tracking, capabilities content And with is and possible do ability and expected shipped just able shipping did now reality we’re one to team the virtual on really new first better some work. the we year, the is, be

fit hardware on well. work same as platform. new the The kind to new of hardware continuing will we’re So,

forward works X on that compatible. So, content the should be Quest

this be we’ve to that able lot time making same glasses of augmented a provide foundational be we’re reality made. to support some build building the content same towards we’re technology larger so that of hopefully And these around -- advantage over base this way lot with at ecosystem that the And one able kind the time, going a the of that reality future and of of we’re virtual take in to installed we investments will that have. fundamental a headsets investments to

investment. long-term a be to continues this So,

wanted just we some AR we’re build of do, are be I the -- -- social to earlier, like the think, said types that script both before that the VR for important, very things it’s to want going vision I and of in what my with it’s able I services of to I’m experiences excited And to of strategically, important little since for and the of that it’s our and our more a in unlock also operate terms be I kid, able of to to control was I all build think operating on. to systems have destiny a platforms that. own us

So, continue we’re about optimistic on what to seeing. and this be very-focused

Dave Wehner

Eric, it’s Dave. Yes.

back coming question. Just to your

we just the shift our A we strong have versus shift saw the which had the ongoing sort QX, to year. with a context In QX think, of factors on quarter, number driving related, tremendously I we A of couple to -- of as commerce well about also services. that. more is, advertisers. spend strength of products this pandemic full talked online we’ve of this as -- is range the are

some and from as strength come and QX we getting saw well. our small QX of sort and largest seen advertisers back specifically, also have in businesses QX, strength start of We medium-sized then, or QX and

look I back just half think, we’re tougher facing comps in as you XXXX, of in be year. the out to the going So,

services away things it’s towards from shifting those to of more pandemic had the related the products. Some to expenditure potential revert, whether consumer

factor you So, little growth that bit layer tougher on a The top that there is it privacy-related to will XX. related then, to biggest headwinds. comp. headwind And of a iOS of make

So, at certainly the we And some of top given just of hit seeing comps changes. from we headwinds then, the as the that strength but that of the privacy that we’re year, we’re anticipate on this the looking most really, importantly, year. half saw tougher we growth, back

Operator

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

Justin Post

I guess, tough you. it’s Thank a regulation. I’ll know about I ask Great. topic.

Is to with with IDFA besides XX the iOS First, obviously, filed a thoughts maybe going bit forum. you’re the since anything Mark, remarks, you open Any you with there on Apple. earnings call, in more on And case share? able maybe just their in prepared puts competition elevated Apple? that your that secondly, direct that FTC competition last then, little

Mark Zuckerberg

the on of work in laid we’re out product of four with with significant from Well, certainly, overlap quite iMessage areas. or focus terms three which three areas the In competition the is Apple very Apple. exception communities, the work is the that think competitive to are messaging, have they in think U.S. most service I other I the specifically, the I that with do, separate going doing And popular

and move think as of expect be supporting because businesses. changes And to we as XX several we going don’t I term, longer are there apps competitor commerce that think pre small a that then, think towards to that platform, well. problematic, the very the I and advantages we computing app especially would building other for fact you them more they next small iOS see I of as of install it give have have. the their In think businesses, some there,

a of is Difficulty] competitors core shaping the face that think sort we app So, this in I social that competitors, do up work [Technical that -- lot are of many There right? do we

Operator

patience. delay me. we today’s Excuse Please resume conference apologize, now your is I operator. a the but Speakers, slight will connected. This shortly. in for conference. you Thank the hold be are and will there

Mark Zuckerberg

was question one last there Was that I another on answer? to that supposed

Dave Wehner

Well, there’s a we on question about this the now Are through FTC. line?

Operator

you Yes, are connected.

Dave Wehner

Okay.

Mark Zuckerberg

right. All

did I you? lose So, where

Dave Wehner

follow-on have a on think FTC covered dynamics this then that question the of we landscape, and point. commenting have you that. was are and thoughts the anything I necessarily question I had don’t think, on the any at the we competitive related we to case there around

Mark Zuckerberg

it’s privacy be on sector point case. between and of I how and social expectations voice elections privacy expression focused to important. around I is, Because some issues to equities, trade-offs think, should governments overall, questions just clearer elections balance on questions guidance regulation Yes. handled, helpful actually to And to internet some, how be us, be the see private internet. a elections a on and the norms around was the that, again social be for what want difficult much of place. the all these have some all very think the I and question very have those. highlight would would clearer All these and I think should they’re would I and for other overall, content there have it it the on rules in but safety content handled, there be content or and And that for trade-offs. rules better giving free very and I clearer because to company mean, Nothing a trade-offs on people think

something for. going to to that that’s advocate be we continue So,

Operator

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

Ross Sandler

guys. A you -- me? about the price metric hear Hey, can question volume

Dave Wehner

Yes. hear I can now. you

Ross Sandler

a quarter price into the think Stories the metrics, lot you Dave, I volume format. just also seeing But, about the of strong is question you was from that there’s know, A price long factors mentioned. that time traction you’re go a mentioned around year-on-year. first I Yes. that that up versus DR in that. This advertisers

a around So little traction these seeing Stories Feed the maybe bit just kinds more versus where are advertisers price most dynamic? ads? we DR of color Thanks what in on are And a the Stories lot.

Dave Wehner

Yes. Sure, Ross.

the impression the we auction growth to depend dynamic, QX quarter impression on XX%. So, with I is saw XX% you as in rate pricing does from mean, of -- really growth. And the slow know, this growth

of And of ‘XX some is of product normalization that QX well engagement Facebook. as on just trends during to Instagram the due lapping as on just optimizations

trends. the story focused we’ve benefit it’s been overall performance example in Stories progress we’re continue and an we Stories, DR into make sort our one on performance and know, pricing then, with is on good some you iterative there of And activity, time. to to improvements give as expect And to seeing ads try continuing better that area that, those been Instagram so, the better we’ve would been there. enhance make through and that that over we And QX also work

as There’s the been that and Stories with that price So, a ads, Feed we progress called still gap out of with on well a making driver pleased been being ads front. as we’ve improvement. but we’ve

Operator

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

Colin Sebastian

what will other WhatsApp, an differentiate I’m the private than given geography efforts on Two secondly, still quick functionality then, well there. think, any as me. ones I of And uptake roadmap I or from branding monetization, early, but Thank inevitable for messaging, consolidation ultimately, in the be you. would update if on or it’s for Reels, Messenger there’s curious, guess, helpful. I know performance ongoing as

Dave Wehner

take Mark, do you this? want to

Mark Zuckerberg

Yes, the I you identity you and biggest mean, graph the the I same to is, can -- connection the WhatsApp biggest the Messenger first and Facebook take one. of between comes and that to Facebook difference kind for use obviously, connection Messenger. on with

we even So, more make that and fairly of across think kind on include if also of the will can that still they aesthetic both, interoperability, and bring apps functionality privacy focus the distinct. will different features how apps you different I world-class much send to I the apps think messages there’s the feel same the and vary.

a think, we’ve more a a has I of always making place very experience utilitarian always -- and on focused WhatsApp there. had premium on lot simplicity it

keeping expect that we’re there would but Messenger, on continue in focused more we’ll functionality, more lot and And tools more new expression. Whereas adding continue we I we’ll minimal. features that well. adding for a So, as have

Sheryl Sandberg

ad answered work the we content the product. and scale consumers. a we to with us question, to an On really we’ve people content. like that we’ve we said tag pattern are rolled followed ahead helps timing monetize. product. to fit, using product. the And we point is the on same Then, make product we’re countries. And branded the think product it, into out us of that And follow a we very sure market it for people have bunch things, as data David and pleased other help determined. We XX quarter-by-quarter We’ve in in going The on over to we’re launched basis now launch so And Reels, be that there’s the will beneficial share it. Reels, early for We the in of We monetization diligently work make that I creators launch consumption, In content it’s sure launch ads. create Stories. improvements shopping and second, easier discover we last make Reels. a launched of with on and consumer

to we do easier the create businesses things people So, ad for will format. create make the right right to to it

product things for those or looking will get We that person to to who do service. make the ads might be

Operator

from Your from line the Youssef comes Securities. of Truist question next Squali

Youssef Squali

really with and if theme to it, eliminated? stand, but and and completely was to discussed two how communities or you of talk terms and go in even groups. how headwinds, deemphasize I engagement have Facebook, Mark, But a to Thank not large civic to back do or with you questions, How is civic emerging the quantify looking to subject. from see And in it the on I want please. regulatory you social platforms that you’re the it’s other I you. about to first that how either talk you Facebook, XXX important, it there political site? of the there XXXX? this way contents one and know Section political to see media on of a is Is if about of be thorny second, protection. the where just narrowed is just guys dealing increasing or it, headwinds potentially quantify potentially

Mark Zuckerberg

vast had services. know the the has that and about. they content, things where we to I that kind probably into in And have I feedback together see to core our communities political of the and care think with across of can pretty trend, from lot communities that of of of that politics of communities the of -- politics better everything. Yes, minority have to have that content, I from we’re connect bring if job I do stay like their a take on our have both a can And I that lot to think, come civic right? there our of and politicized to the creeping would size don’t but way. feedback promote our communities helping people has of of way they think that majority family, been it’s it to of And and it’s helping suggest think, and society that to a of Sure. and share all a don’t to any And the And healthier those. that the become do people amount a stats this I that a connect we people small friends reduce if those job we services jobs can on work we we want a potentially better experience. we lot --

deep Now, it’s I -- mean because we’ll to have a expression. have we this to commitment free carefully balance

there’s that there, able headwinds well one community believe But, thing people recommending to if they serving discuss that is, the think mention way to But asking were do I be stuff in, in that a is that. for should that. this the the skip in want you I But, more or had So, particularly next certainly add to in to able to think if join be that before the any you jump to can just want any that. a jump groups to content want because to it’s that that I’ll just don’t in about question. right factor you don’t he beat Wehner Wehner, what be think now. on I you don’t mind all there. and going any And of if that’s that I

Dave Wehner

had. something political well, to factoring front our active political on that’s factor a And we in No, It’s an This low that not not is in certainly, is a our revenue, Yes. even exact the outlook. XXXX going outlook. It’s just as that is like was headwind say quarter single-digit Youssef. small. thing, I extremely ads into

either on or in outlook. the not our So, engagement side factoring in no, it’s side ad the

Mark Zuckerberg

And like I your to this going almost do rise been today. able update that right? free to Congress the this tools helping think it’s And that the know to we very Section I also XX working for expression internet expression built people I gone internet be And into now, platforms are important. pretty place years. the Section it’s free and values after, Congress. in given XXX it’s -- it’s about testified And to It’s question, sure think, way that safety. DNA. and make do XXX to in Yes. helped And being far ensure it balance has I think, of XXX should that give internet’s as terms think, I to in intend, the

Google can So, but continue I emerge. carefully, not perspective think Facebook that through like to Twitter what that perspective or terms in be making of could company larger should any companies of changes should just and from very through their content a be updating the thought sure the policies, new from handle also of moderation thought or

well. that’s as think, important I very

like to So, And support XXXX, more details we’ve on we’ll the tackle sex with The on to work Congress for we the supported supported content exploitation, this also we’ll a push to able and hope make systems opioids. this. changes be new child moderation while. in efforts all prevent to material but And transparent. a new matter, and to course in of harms support imagery trafficking. Back similar we change this

Operator

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

John Blackledge

sophisticated those expectation and And questions. driver further community, Thanks. just layering monetization community uptake evolve on meaningful on IDFA, could new Facebook of services? think changes? as the the than groups, Thanks. Sheryl, And more Great. And on a impacted the you how prepared the do advertisers could Mark, for more for in for long Two coming advertisers advertisers? for years? details be then, you more tail or are services will maybe Dave provide larger,

Mark Zuckerberg

I can to speak the point. first

it’s the driver First, a communities of that probably with. get people I meaningful already news we in business that and from But is don’t business, that both family. separately guess look services for friends and feed pretty that the of people interact and different content types the up the are show my think They at value from today.

that part to people love more engage And I the of, think the call sub-communities. big is groups groups kind a continues Everything physical -- whose engage basically turn build basically support in kind communities, it help the Facebook. I an institution people to The now, So, the thinking feed, to job it to of there’s a about mean, from most the in I’m help everything that that right? of navigate help as to to it’s people. kinds out people I’m most are more this There very these congregation of that about communities a issues grow, and that full-time my though, And the remarks institutional who for and life, we’re There organize spectrum a are different community job and member of message now, a earlier, people at people that and absolutely, lives. people more have would of serious and looking are when tried I their I fun, institutions I have that backbone get like organization. be there and synagogues really this be entertaining offer, often them community there is communities now, of them. for things they are should to very has they basically right? that of ways find of, I But, online. important that and meme there in my help effectively groups to out is in right future. to they on have there their to of that right -- trend like that’s think when structure, I’m think able

then something maybe different that contribution So, some organizations really help you spanning video a content that they excited And there groups help a that post lot it those to these that. if a on just very think of if we just are organizations we I’m that a where taking websites and think post, and make provide Facebook we big but lots own I on. we other institutions chat, that and can be can of can that spanning I messaging, like are areas, that not community up could do that in place feed things about more and engage build on that tools

Sheryl Sandberg

think a and important we that take question, really one very To your question second seriously. it’s we

services. able business the use one giving advertisers. the safe a way, without have without IDFA privacy are we’ve to we a makes to audiences that very precise to are personalized businesses a whole way, get are safe an with an buy Big businesses would went sales. see XX% to very they products the buy businesses I in businesses that advertising. customers can’t. to their are the buy ad be of a sense. worried of small small targeting And can permission So, data enabled region. in ads, can reliant the information who personalized they’re not find whole businesses, is interested ability country. really and to If all And very happening that want. effective We on ad Small is They website going And in that ads to think, because concerned they mainstays cut our in privacy what’s away, small to

direction quickly, what job general don’t be of going because but we would that that comes small business. growth And that so Apple’s economic would far the growth much our happen. to contemplating businesses. their of is that from see detrimental also that detrimental It’s very can you to think Now, very

noting, it’s I not about just think advertisers. worth it’s

also changes developers businesses. forms these and other of of Some impact

down, of subscriptions worried have force payments starting creators into are to that and free to their who hear or some other will or start in from charging We developers for are revenue. shut services them

not challenges, and very hearing of more all more are them, concerned. small businesses are we Now, of are these so from but aware

Deborah Crawford

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

Operator

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

lines. disconnect now may You your