Facebook Inc (FB)’s Q4 2014 Earnings Conference Call Transcript

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Dave
Yes so all ads come into that, just on the side of how we think about value to Facebook and then I will talk about the other ads. In terms of the product development that we do here we have four major groups inside the company and this is how our company is organized. We have one which is focused on growing the community, one which is focused on the increasing content consumption and people’s engagement another which is focused on kind of efficiency and helping people get the most value out of each moment that they are spending in Facebook and then the fourth group is our core business which is focused on helping people to see the best ads and basically make the most money per moment that the people are spending at the lowest cost and most efficiency in terms of serving people . And there is I think a big upside in each of those four categories.

I mean are community is in our comments upfront that time spent across our services is growing by 10% year by person which is pretty meaningful, utility and efficient are increasing and of course the ad business per person and the efficiency of our services are both increasing as well. So, I am pretty excited about that I think we are organized in a way where we can continue. The other opportunity in Instagram messenger and Whatsapp.

I’m really excited about and I do think they are going to reach the level where they contribute to our business in a pretty big way, but it’s really important to get this right and not rush it, and you know what I would say it around messaging is where pretty early in that cycle we are about where Facebook was in around 2006 or 2007 where at that point you know Facebook was really just a consumer product, there where no businesses and eco system and a lot of people were telling us okay go put banner ads in and that’s just felt wrong and I just felt that was going to be the right way to build the product or build the business so instead what we did was we built pages which was away for businesses to interact for free in the system and start creating organic interactions between people and businesses so we could figure out what the people using Facebook wanted businesses on Facebook and we built more tools for pages and businesses to engage and our recent success with advertising is really just built on top of those organic interactions between people and businesses and when you see in messenger and Whatsapp now is we are still in our early end of that curve where the interaction is still primarily people to people and businesses are starting to figure out in the case of Whatsapp much less than messenger so far, what the organic interaction is, but we going to have to go through a whole cycle of figuring out how that works before really make sense to start monetizing them in a big way but yea I mean I big am a fundamental believer that these are going to to be very big contributors to our businesses over time but we just have to do it right.

Operator
Your next question comes from the line of Ben Swinburne with Morgan Stanley. Your line is open.

Ben Swinburne, Morgan Stanley
Thank you, two questions, so can you talk about where we are in the north American market vs the other regions in terms of advertiser maturation and acceptance of the Facebook platform, the growth rates in north America can be really impressive despite being the biggest business when you look at the arpu trends compared to the other regions seems to be moderating a bit and then I was wondering Dave you could talk about the pricing growth which actually accelerated from Q3 to Q4, can you give us some color there I know there were changes righthand rail, but anything else you would add about why there was this huge acceleration in pricing growth. Thanks.

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