Meta Platforms (META) 29 Apr 212021 Q1 Earnings call transcript

Good afternoon. My name is France, and I will be your conference operator today. At this time, I would like to welcome everyone to Facebook First Quarter 2021 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 very you much. Thank Ms. Investor Deborah begin. may Vice of Crawford, President Relations, you Facebook's

Thank afternoon, conference call. you. quarter first Good and welcome Facebook's to earnings

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

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

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

thanks and joining everyone, for Hey, us today.

started, we can there. we soon. focused on COVID in that we're India situation virus to take Before can a in are the about I'm in do help moment this I hoping And to get just want meantime, under we and we worried to what say the very that get Brazil. control also

has world. one around day, more billion proud an strong than continue intense And businesses our am that another million and people and businesses we to And of This year. our Now, now turning for the results. people the each this quarter. customers. More reach to deliver than tools use been to XXX I more value apps X.X or use was

couple to term. quarters, has been key performing of long change past over confidence than And and of the we our the that areas our in to few has potential increase meaningfully better Now, the Company over the the this the trajectory expected. investments us have business given a

going opportunities pursuing So, and commerce, about business call, that reality talk and to we're and the virtual in I'm on messaging augmented creators. today's around

So about first, next let's talk the platform. computing building

computers virtual Now, platform. reality how existing presence an of enable and are future. deeper to be with part to I They're a that believe the sense social going augmented important connection in than going and of interact we'll any

keep here, after even better X out heavily to investing Quest for overall best the R&D our growth. season. is holiday building going in the accounts budget experiences than we a doing we're part So, and major this of expected,

Quest updates major And make better the for PCs immersion. support believe we continue Having this, to and experience it keep is advanced, experience. factor and engagement, better, to deliver wireless really wirelessly which we games in Air for and technology the able that going of be aren’t minimum is very around high but wires companies just a the you sense deliver to breaks wrapped quality bar to presence great good most shipping refresh a that has Link breakthrough. hertz We and wireless form quality Achieving content a Quest's enables from and rates. high XXX of been including a streaming see and

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of example, for introduced we VR App for so boxing people like their biking subscribe through they open on store just a much so do consumers tool to Peloton. dancing ship So, we're would like to apps And today. Store. versions on without can Lab, developers launched and in to can the than go of between FitXR phones to PCs, services pioneering We available and streaming early a app currently having App Lab what's directly more Oculus from model

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XXX reliable messages Business online about and a to and with products commerce via about customers. support is more their their than to less For million and and messaging. want right chat. the get messages, show want people, Shops API to per sending infrastructure WhatsApp more lot communicate orders larger Smaller and using People and websites businesses day. from want secure already purchases businesses of a Businesses are make take

and Click-to-WhatsApp and on than Messenger, nearly is, height the step and by grew it -- X the already More ads, COVID, easier of to total XX%. to services, it businesses daily within can using these next to last introduced all between million for next the those relationships. customer conversations ads year, handle the to Messenger Over possible too. direct step And since than them WhatsApp advertisers make we’re we businesses from to already make Instagram Click-to-Message now, that tools started give and and here ads to The them going during advertisers X the have app. Click-to-WhatsApp directly to people million using are is Business more people adopt create messages

is relationships acquisition platforms. native on regulatory going manage Kustomer through our to to a we're forward their approvals Our and way customer offering businesses of looking

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As part for our support building in of more investing out better this, products. customer also we're

services. The creators. pillar to privacy and the of moderation area focused work, several I lot trust that a For years the is the support for around and last content discuss work our safety as today on next and I view customer want last we've

an reality think economy. people get of a creative be to is human a across our they than creative more our tools millions of set to living. People to the from diverse and for this to for filters. the services, best to get is live rather that incredibly positive build create where to of And of and long creators content expression, to monetization documentaries there, range the they goal do full augmented don't. support that to we platform jobs work enjoy I vision conversations And the to need form writing out and that make the future one economy support creator

that of part and is want I build. size, span and every believe ways every going this Now, and media of is consume that products tools that type all a compelling to to a experience intersection create be the delivering suite of people content. the at to audience there

we're audio we a Soundbites for example, audio. podcasts audio listening with Rooms, communication, private Spotify roadmap. will and broadly, we're Facebook launch for and calls For also our be communities, long-form the also in think discussed especially we're clips and consuming Audio We're sharing audio app. audio partnering to already building short-form I music to for which useful we player building sharing out groups but And support for and now recently Live supporting

whether to Instagram commerce And and we and with creators bring will ability So, a for we also or give more to year. creators experiences options monetization, later recommendations share together, enable unique connect tipping, to that we need with product commerce. have subscriptions, enabling on these Facebook, that's this and easy and

the we're all to I’m it some emerging and work trends the to of over positive everyone. these of of will the platform the of opportunity next commerce unique around people these, efforts areas down doubling computing these connect And and in are there's together, ways are now, going big support in hand economy in forward. few that our going a areas a that I'm to to optimistic world. for on deeper that help creators, we seeing a in help stronger Now, accelerate each And Sheryl.

and Mark, everyone. strong a Thanks all really This was and you’re quarter hope healthy. hi our I for business. safe

revenue regions, total billion, growth during results Our strong $XX.X good E-commerce, all year-over-year CPG. the continue to performed XX% seen is and and we for which We’ve see QX well Retail like verticals a have in pandemic, that was increase. in

large the Our transformation businesses by in continued shift and performance part more more has digital online. been driven as

in pandemic. during the have years, and and support investments tools shift, businesses invested helped For we’ve products themselves these many to this reinvent

pivoting to One When Many had roundtable virtual job grow. best Essentials. and adapt she runs of COVID an my I skincare is and company I Facebook advertise spoke on this yoga more minds. classes. meditation. we privacy-protected them Detroit and way, city, so At from Johnson, her so of who be Elle their to pandemic information her sign to a to ads. used to of hit doing and online personalized to close else, will to out. they me called before. La’Asia tell SMB to things hear than what’s all-natural how quarter don’t her. She get uses the done they’ve her fully She with Jae meet we the and in they the not parts It’s owners a a all-in SMBs Many do afford spoke store, her and they to suggest, been talk in to know also everyone want I makes classes started give can owners as store. she during Facebook studio their did happen the what next. city started outdoor members. to all income are she They X,XXX they product than she which even The the to online, the more with Reyes, advertise needed her to do in enables in when quicker the in able it, get she she a then has want shelves. Arbor. says Garden, replace for people, reopen area nearby By or to on now yoga, they her Group share to are sell lost everyone online all people who show ideas, couldn’t Ann And products Ita who called those the everyone ad up Like and she when able to keep yoga business interested the wants the runs to from them of This she’s I in word than

down line, they’re needs. understandably, changes continuing them navigate helping suit doing So them, Part the iOSXX now part to and tools us headwinds the and but the it’s potential is it their just asking the or long our ones to of to not regulation. that coming improve creating what whether is over we’re products help of new the run. And are answer

tools part, products. the On first and

From people buy experience to right our sell Initially, one getting all-in focused too. we COVID, help online. on We’re work for of and we day fast-tracked the sellers.

seamless we nearly possible. continued said, offer. year Live transactions with to and which ago. new bring to created Mark life worked launched We’ve as experiences commerce we’ve make And as the platforms partners to Shopping, Shops a experience our new like formats, can the to personalize As help unique shopping features develop

getting Now, experience for focused on the we’re equally consumers. right

love. best in out businesses more to creators the developing Drops brands like Shop more with ad investment. are to people tab and people shop constantly improving products also help stickers, immersive they and that rolling the possible exploring get new where and our and Product reach We’re and Tags countries formats, enable return on We're they

also across ads to more strong billion Facebook X.XX Stories see We month. continue visiting ads people we’ve seen ads, strong and growth which We’ve in which now in in every video growth heavily. than Watch, invested has

to video them. watching for people we’re of reach number more the creators developing businesses opportunities As grows, and

more Online expanding countries. Paid We’re Events to

in We’re ads that And where we’re like enabling content videos. their developing run short-form people in we’re more ability for Live with testing the ads instream to monetize to Stories ads, including creators videos, look Facebook stickers.

the we’ve pretty On advertising and part, open coming about that. challenges there Yes, are been personalized headwinds. second to

We’re huge of amount to work doing prepare. a

Measurement implement Apple’s API impact with mitigate Events our to iOSXX We’re working customers the our and own to changes. API of Aggregated the

to the realize to can way. need with, enhancing who comply collaborations to perform we’re part We’re privacy-safe soup people they’re our tech rebuilding they bodies tools explain elements in WXC have need we that for and understand privacy-protective. to businesses, that of while selling people do less future. in making system so our but technologies to are It’s data Small to that limiting have reach meaningful and confidence they personalized keep to on personalized when businesses ad want the they’ll like buy advertising it what that the people’s acronyms better personalized use provide access so our a industry experiences have alphabet still case privacy don’t that like the initiatives And how information. good to us access with to long-term people is also that continues of works of on the to ads

We’re can digital confident they and to results can, continue great evolves. advertising that get as they

my health and for big set time public long-term. the in from for right assumptions, everyone every now. Whatever businesses invest With them of happens, and pandemic the and to keep businesses same who incredible day, and people have the connected, in still to with particular, If the support millions anything, we’ll for our up thoughts things want how hopeful. and But expect taught continue and us, colleagues the it’s get and who response, hardship in better to supported our who now like ways India we not in turbulent small, friends in there’s the by Brazil the of and to saying now to all time. roll-out has to businesses future. teams Mark, not close countries, with to I year and vaccines, last us this make reason at to through heartbreak many is in and causing be grateful success and to am real people real work the are learn support I

over Now, Dave. to

Sheryl, and sustained our quarter driven the Thanks, strong a across digital afternoon, was in for our services. our business, continued good businesses and economy helping growth the QX by everyone. in success consumers with engage

recent least basis least on begin March, services our that these a details used one people reflect the estimate from IR of Note Further at one slides surveys. on billion with data included that our billion on people X.X used metrics website. Let’s community basis. a earnings at daily on family metrics. that in and approximately X.X our QX user in Family monthly new metrics We our approximately are

XXX growth year as pandemic. quarter Our users even or Facebook users grow to XX% by first we last monthly million active to X.XX global MAUs in X.XX year. related of compared billion lapped XXX continued in million DAUs the X% up March. elevated XX% to community user approximately reached the represented last last compared the of year. billion, daily grew active to or

small QX in on largely and advertising a revenue medium-sized commerce. all in online continued as or advertiser Turning rates year, billion, total broad-based such total have on All $XX.X currency was lower. XX% strength sizes, and revenue unless are was a strength product benefited was on year-over-year remained verticals currency otherwise billion, from revenue comparisons with noted. constant a We currency Growth up across growth constant XX% million The a been from QX XX% had QX ad the was basis. to $XX.X constant $XXX revenue with would up foreign particular or basis. XX% exchange of basis tailwind financials. advertisers. by last driven

strong and QX, was lapping XX%. Europe the our the & average XX% experienced total by price driven Instagram regions. ad million, pandemic-related currency headwinds ad while a the up from revenue U.S. Quest and to as Canada ago Rest launch. from growth Europe growth benefited March XXX%, and of In tailwinds Other continued in number one primarily We've year-over-year Asia-Pacific, during with On was as by of services increase World, was all by average headwinds. face Quest lapping geography by XX%. World at continued Rest basis, per been impressions encouraged XX%, of user revenue driven Growth both XX%, respectively. strongest driven grew sales. we’re ad year increased revenue Asia-Pacific in last demand. of of across sustained in also year. benefited The and XX%, $XXX advertiser Facebook. levels increased was its ad growth demand per and accelerated seeing from ad Impression Our served sales strong depressed October X since X pricing price well strength the currency

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

technical in quarter XX% In offset the We net revenue & new line ended functions. G&A full-time R&D mostly of by Marketing expenses the first lapping Lastly, over year. growth terms primarily last increased XX%, with partially our efforts; partially We related X%, increased hardware over hires with X%, costs hiring spend; costs higher added bad marketing partners; investments, core quarter last debt year. with specific by the driven up expenses compared to of lower sales COVID and infrastructure in driven in employee-related in hiring by QX, to X,XXX to Quest XX%, employees, XX,XXX core products related of increased offset hardware mostly growth to in payments and increased items: X by Cost consumer to support Sales

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

Capital and $X.X including was was facilities. $X.X per our in the billion cash cash stock was billion first we quarter Class driven rate share. Free Net $X.X or billion, office tax $XX.X Our and infrastructure, $X.X capital of quarter income were in in leases billion. servers, common ended by investments centers, data XX%. with flow We expenditures $X.XX billion securities. repurchased the and marketable A network

our emissions in that Facebook’s renewable and sustainability, is an In to we to energy. reached are important supported years have there in decarbonizing XXXX. business, our pleased milestone but we This the global our I’m now do goal entire more of committed XXX% remain report work operations net terms value next also and of to by for ahead, zero chain recognize is

Additional information environmental, efforts be filed our proxy in areas and governance ongoing statement. social our can found recently on across

Turning now to the outlook.

quarter XX% of We with revenue a number ad a the driven XX% are of and growth the increase per average in the delivered. XXXX, first strength our which was ads increase of advertising pleased in year-over-year in by price the

advertising XXXX. that expect primarily will the to revenue price during We growth of rest be continue by driven

the remain we expect related quarter total quarter rate growth during second year-over-year We significantly strong the growth of relative increasingly third total lap modestly the XXXX lap slower as revenue fourth the quarters second of and to to quarter to first we XXXX we to the revenue XXXX, pandemic stable periods accelerate expect or in growth of year-over-year growth. In decelerate XXXX. as sequentially of growth rates

to continue targeting recently-launched which regulatory changes, is increased XXXX begin into headwinds in in expect platform This and the XX.X is outlook. the we There impact to factored second from an iOS having ad regulatory and of transfers quarter. expect these light our are notably around update, progress. impact in wide transatlantic European also developments data a monitoring viability the closely developments, potential as range continuing operations like our European of recent the industries, We of on uncertainty we across companies

Turning now expenses. to

expenses by expenses our $XX outlook the strength products, of business total and updated growth hardware. in consumer-related product the investing compelling investment long-term prior in is $XX consumer opportunities billion of underlying $XX XXXX see to talent, including be expense expect our and the reflects we our our to driven to infrastructure, investments The technical committed billion from billion. We $XX and of across in remain range billion, and for to outlook growth We costs. year-over-year

estimate our billion. $XX of to billion, $XX to the expenditures of $XX capital from in We prior $XX billion expect down to be XXXX billion range

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

now Turning tax. to

to closing, continue the during our has our We presented incredible in full-year high-teens. to some the challenges pandemic XXXX tax In year past expect global rate be community. the to

During this navigate France, and more as consumers the out questions. to and time, both have helping transition remain reopen. focused regions open help people stay of that, let’s up the connected. pandemic With worked call on We we businesses businesses the for

you. [Operator question line from Thank of Instructions] will Our Nowak Brian Morgan be first with Stanley. the

I have two.

one, The if a for commerce. first just report around curious you will, self card, little

what second monetization you're half? I spent world from or around hear base had You grow a you've you are your focused as made you're perspective number? lot the Where would for optionality. one and seeing sort the million around about half little that just be in the of about say talk what user areas thinking to would on we progress, a in areas really into back And and of look then, -- more an I to 'XX, as curious you're Shops, the about but advertisers how back early non-advertising is of XXX time million you Maybe reopening, so into to most continue the a know it's are the shop And engagement the merchants that progress innovation of biggest far? visitors. of in made the that that reopened

the on start can I first.

through of Stories, years, the largest hundreds one it's fastest-growing COVID there's vertical. Facebook and but had Stories a verticals it, of really that today dollars last lots People been drives we've ads we business. believe really our over off-site commerce and of on our ad of been It's our e-commerce our of billions accelerated GMV five through ad ads. lot discover our activity and the Feed Feed platform products So, already. through of

ton certainly we to have progress to advertise. there. be to to going made do do We're work the are, to want very continue goals we've that. of a our place best forward And going So, to

time, think can in here. the to at are I we data person still As the market we we right but get way, right mentioned use the that my in privacy-safe leaders a remarks, right ads

as to The our other in on make I easier about work his remarks sell and Mark doing, did is platform. to we're talked and it it well,

to shopping than other well-defined later experience we really in adds. is were Now, that we are the and places, to

So, like working integrating parts build know Shops. work have products a the to expert some of -- that We're partners of we the not as with and of we're we we're we're to do. in, lot experience integrating and

more have million month. merchandise Shops more million and than interacting XXX We per people than active X with

So, made we've to But take invest good transaction to on continue there. progress. recognize we're and we some experience to is seamless a going that side, getting our going really to work

out build do the think, the to work now, to done, we the We've have do the another to on to that consumer platform. to on is we where people area have continuing business transact I side, more experience. I more the integration side. improve and experience on build consumer are continuing help think, And we focused on

be majority ads foreseeable or the is that need what and revenue so part itself don't on future, going vertical area the have focus commerce important online in of of to very be with along are to on have us. worthwhile and For move this We big to to worthwhile, experience to really And a we vast our great commerce us. order the a helping businesses more makes on in investment investment platform. but that, happens that, this make for a our fees

question. take Dave. Hey second Brian, it's the I'll

what are broadly, seeing engagement a back more think going to I just is So, we're normalized level. trends that

down dramatic, trends growth of saw because significant of the of factors year it's seeing increase the think in into that's phase side I in in result In say, we're a being trends. of lower. those of subside of the don't impression driver the year, first price progressed COVID. the a on but So, we being pandemic, of the engagement as gradual certainly revenue a that past been bigger factor that's And the think certainly one anything growth playing is engagement that. and hugely And XXXX, I'd the of quarter seen something because it's saw COVID noisy if a you pretty some we as lockdowns. about and we've

continued On services even revenue we're think demand spend products -- there with seeing front, and seeing we're and come then back. I the strong

that's seeing think impacts. I So, kind what landscape we're quick of with of the COVID a

of next from with line is question Justin Bank the Post Please go Our of ahead. America.

Great. Mark Dave. Thank you. Maybe one for and for one

and as on because overall see you've like I growth use the these any on what you've Facebook some to tracking you're opted you update? update? Could time already just over Marketplaces. questions comments people surprises And think second there's usage XX.X out engagement? other users the of any TikTok Dave, strong then, with within -- factors? comment but And new you seen with of things some the it super on what question, And platforms, Watch this or built have maybe seeing with spent growing maybe been Snap, the who with and platforms is before engagement, iOS

can Dave. of those. both Yes, it's Justin, Hey I take -- take I can

We the of on and about front, yes, affecting the we're and couple talked growth. impression that's growth levels, I seeing the impression some normal think more factors. So of return a to impact COVID the

starting doing Watch, couple of Facebook that's to we the a on with it and that your factor traction we're on gets on say strong I'd point of second of -- we're about seeing, I'd really billion question, is particularly which that. internationally. is examples Instagram. Reels and X.XX users. video, to pleased Also, And talked some get -- kind The there. we're engagement well at seeing

a spent time relatively basis. has impressions currently fewer video on Now,

I trends as Feed video seeing say, into are products that's from So, well. in both News own And finally, competition playing we our others’ products would and also well. then as the engagement

began They any your think second really the it's rolling update. surprises with So, that's out just regarding question Look, early. it. factoring into then, And XX.X. iOS was I

So, point. But will that think, this use small of it's new budgets on going say, very ability the their OS the low penetration the impact couple impact very, have manageable. the we this to update said, things, our we effectively. of kind I'd is at business, rates continue be of concerned own That on sort advertising businesses to of a of about be to

mentioned, Sheryl but includes with on targeting it Management. to continue advertisers Apple we're And will our aggregated our using for own that remainder headwind the call the as advertisers changes. API progress, own to these to making measurement encouraging Aggregated and solutions work for helping well We help navigate expect as that of a year, Events as we data approach be the

element very the in contributing than improve which products would that also really with run, for seeing software to are like are just of of of and and Apple. performance with So, even services in specific just overall, we APIs particular that just third-party issue and usage. these on outlook messaging the that in advantage And number -- their we're the the I'd challenges positive ways there with around But, strong is hardware that the with I of face it places add we're the data, say, long launching. changes a the these more and mitigations, own overall less update then, impact -- the is so. hardware products one challenging, we even And maintain addition to goal our in XXXX. some products has XX a bigger iOS really ad to this demand, impact private of is much Apple approach think Apple data also

the closed perspective. don't one approach the from an Go is So, that ahead, think industry generally France, next for this we innovation best question.

go Doug from JP with question next ahead. Our Anmuth Morgan. Please

Facebook talk three Mark, first-party these and efforts insulate ecosystems economy. VR, destiny giving where more doubling from control down you're Thanks. time? across whether and commerce Mark. perhaps view AR highlighted the you helping you data whether they you for areas over as and about creator Hoping other you the then platform, you more its as One a could

I Sure. talk that. about can

improving can about of from experiences that build. perspective mostly these think I the we the things we think,

and for experiences augmented want presence reality, a I virtual about have long of and grail holy you would sense the think type delivering of I of that thought it's a build. So, time, the of because sort to social that

converts really web someone now, So, where browser, to that right app So full also future a able of think of take doing all this I to mobile cases, a to you're but an that right motivated ad, and experience and is I'm the necessarily in website the some been this when then mean And it platform. environment to this seamless, it experience more you'll But, we and to sell a the an better, click to it's a guess just now, you're going our else, build payment you rules. present lot seamless. unlock interesting think, whole experiences to and powerful. bolsters is excited times, making that see with are, also it'll you'll of going a better it, of really a to different it help that's a Similarly, Company, and wanted who opportunity, like consumer long better I for be have it just that's an clunky on businesses and on about and that. what businesses using be And the by bunch will going in And people experience a make wanting time, be side, out across for on part more commerce you there's businesses now, lot ad, I And really website, for won't history performs restrictive right? the to I feel small better. is for increasingly about. the constrained the context we've of the lot

way working way So, and the our out from going system basically there. the robust from we're experience to approach is having I very largely just then with built this think this starting ad down

all of we and then get the businesses. will can would and the better more will an payment creators and way systems and experience imagine story making better link into convert I people for then file, that experience. consumers and our businesses part a shopping that on it that do, the credentials and on over what increasing through ads going So, both Similar side. creator time, become the funnel will can for be a better people Shops also increasingly, as have so have better Shops And and that native have

not that goal Here our services we there's care think community are about. major there will is that that's to across become about creators perspective I lead so we a business our too I opportunities then best more that's they'll main make products. to to mean But, there and what this there's opportunity over necessarily the if But products for kind people, with But engagement are building improving think be years. finding a better for content and good some business I opportunities the that of going stakeholders itself. the the and creators of going then that's to lot benefits monetize, the more the creator several a by of is stuff place And course, all of better to that -- think and of there. all living, from if and if for engaging the next economy engage

line is Our Please the Ross next ahead. go from Sandler Barclays. question of with

A question for Mark.

-- this week, this or were on this there of content kind surface I algorithms maximize on So, of amplification to algorithmic congressional hearings how think, concept engagement. recently Facebook Instagram or

the what content of is means gets surfaced. controversial sometimes And some more that

that guys what the the XX all story, the these of is were kind different impact apps. that -- a News on And of have talking I maybe up way fair within we're engagement? Feed might change about many off, now forced ago, So kind years think, work, if whole first what will the actually algorithms characterization? but you to was areas

engagement, or everyday behavior? algorithmic-driven content kind of into lot. going Thanks or Marketplace versus style much So, from is like going that's this a an how something into Messenger just utility

News that this by that I and want narrative then are not News pointing taking around to Feed. explicitly amount Instagram can the feed add time or jump you team critics. our I the our do think anything. to the to We start do dramatically is of in give you can Wehner, increase Sure. team systems I Feed not if goals some, you spent. Overall, optimize overstated time spent in

build if product trying trying more valuable, more, start is is that engage to increase then more people belief by that valuable, time Our people should we that to but not build are you the that's by spending. a will something

for years, we've think yielded So, I and that results. it's done good

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question next from Our Blackledge ahead. go is Cowen. Please John with

Cost VR. the and Dave. to than of expected drives was widely kind platform, accelerating in be AR, second Two adopted? then, Mark, consumer you question on growth pace What One expect in And as adoption? the ultimately building what more lower XQ. VR fast of investing you're kind do for AR, questions.

the full out? there slightly midpoint. that Thank you. call at You year raised Anything you could

talk can I then, about Dave, take first maybe second you So, the and can piece, the piece.

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it's Dave. John, then, And

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you. Thank

Bank. Walmsley Lloyd from is Please with Deutsche ahead. go question next Our

Two questions. Thanks.

in Sheryl, of you've advertising First, kind past, the talked being gain. ROI a about relative

more ROI talk something in that consumer changes, basis, think you about a on from talked a lose months, in as is short-term about evolving? second out tailwind one, when then, the you going the Sheryl, you in that to side. quarters, see in a on And building iOS advertising like also headwind shopping potentially from Like experience invest year? other the operational how like starting about potentially shift So, that perhaps for an outlets happens relative to

some that some the better what you into really bring that that just for could on for think you experience? maybe make of e-commerce can So, stand AR, Is are out might newer, make that things through user walk consumers Facebook us Facebook things Is -- e-commerce? uniquely the of VR? can a

Yes.

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next Please with Our Sebastian question Colin is ahead. from go Baird.

transactions First, other Mark, around play maybe other as siloed effort? commerce, connection initiatives and digital Reality if connective AR and of as as just and in development creation. that is think, are synergies may and see they well, I those internally, payments. follow-up how or be mentioned unified the concerned? somewhat communications far another DM you. collaborative And Thank secondly, that plans VR as Labs then, the the what tissue an will product priorities is and the I'm on between and you that are platform? curious on important still role you I'm currencies area And to shopping and or curious enable

Yes. They're questions. good

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Our last ahead. Nathanson question of will Nathanson. Please Moffett be from with Michael the go line

one for have Dave. Mark I for one and

are So how being creators of comparison And what I'm up that Dave, on not you creative creator I given Mark, that's last today? easy know be different do people add your because about auction, interested, opportunity? -- the many And as you the economy, on biggest for on it's could economy, where add value then, see comments year. do the done parts in think you you of the focusing can the pricing

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give you been on that maybe two-year trend? to be can update a what thanks. drove actually it's than better on an basis on So, pricing much So,

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second pricing. And Michael, question I'll the about take

a be been really that been on broader it's demand vertical a than -- and it's our efforts. it's for pricing was the But dovetails very if every higher commerce story we to that nicely Really really one think simple expected And outperformed. is think, -- that. just I would vertical, obviously I you it pick that story ads. commerce had But with strong. than almost has

of kind COVID. still of we're has we're recovery that were being like travel. by it But strong some us. But to think across-the-board -- were some that I the signs some what's impacted negatively there for other verticals COVID, starting of ads verticals in demand weaker been we're seeing in from I driven just life for really still think, see,

is compare growth year-over-year correspondingly there's the a I talked bouncing I the about than think -- quarters a we when into story, the that all better XXXX. from yes, if quarter, to the advertiser of just stronger think from But, simple and going of normalized a expected. progresses the then deceleration I as demand, we'd basis weak expect that we're of the think compare around not more have, of at and growth, of growth compared quarters rate year you compare rates to at look revenue think noise XXXX. lot just you I do by our looked a two-year because in helpful a rates year-over-year And compare, sort two-year you XXXX

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

conference Thank joining This concludes today's for you call. us.

lines. You may now your disconnect