Meta Platforms (META) 30 Oct 242024 Q3 Earnings call transcript

Good afternoon. My name is Christa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Meta Third Quarter Earnings Conference Call. [Operator Instructions] This call will be recorded. Thank you very much.

of Director Meta's Dorell, Investor Relations. Kenneth

begin. may You

Meta Thank XXXX Quarter to you. afternoon, and Good Platform's Earnings Third welcome Conference Call.

Joining CFO. our and me results are Mark discuss today Zuckerberg, Susan Li, to CEO;

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

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

coming across Meta using good sharper and the billion standard least we're apps All X.X our And are computing product with of the focus. Thanks, quickly long-term people rapid day, at seeing is and quarter becoming parts We Llama, that vision This now AI than more of there right. into and was each industry. one which and a Ken. adoption our of a future of strong estimate with business momentum. around AI

highlights start apps. with let's the from So some

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to XXX,XXX The which But X, models seen doing. into industry. bigger about now I'm I been X than more reported reasoning year. And ready its deal will that -- option will a that this. All Llama well use even have we And an Llama excited is on anything the or source that X the of is expect going others to most several think is HXXXs capabilities, are faster. and X on the be fronts, proud Llama seems is in that right. I me the are I've modalities, the be pretty It something point development. available big clear developers. inflection sometime models first, stronger am be what on leading that customizable, and than that We're I for Llama early cost-effective, easiest bigger and next expect Llama to much smaller open ready they'll new trustworthy to cluster be a performance models there that training way

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years. it's lot advances First, to use the AI of clear that to new new over have that accelerate next ROI business our a there strong opportunities should few core are

there to I our So too. continue should expect significantly second, I invest to we think continue serious investing AI investments require and more infrastructure, there. And

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moving Now on.

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our with grateful investors. And and us, As our for teams, Susan. always, on is here's this everyone our who journey partners I'm now

and Mark, everyone. afternoon, Thanks, good

a up up was total with begin currency were comparisons on a expenses constant year-over-year consolidated unless All noted. Let's last to billion, XX% total XX% are revenue compared $XX.X billion, on or QX QX basis, our XX% $XX.X basis. results. otherwise year.

Generative driven by our employees, lower hiring increased infrastructure, XX,XXX up headcount-related Reality terms quarter revenue expenses. the priority line of R&D by XX%, restructuring as by In the by AI year-over-year, primarily G&A Marketing X%, primarily primarily XX%, third well costs. higher primarily and legal-related decreased growth decreased sales expenses in increased monetization, with Labs, We items, higher compliance. infrastructure driven X% costs. and driven over regulation as costs. with of ended areas lower by and cost of specific mostly driven driven infrastructure XX%,

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

the Net centers rate investments per for and Our infrastructure. quarter driven XX%. $X.XX servers, finance $XX.X billion $X.X by share. data expenditures, network in leases on principal including tax were payments Capital or income was billion, was

and in we our $XX.X the Our was ending third billion. In of quarter of A capital cash with debt. marketable $XX.X and dividends $XX.X and the the repurchased completed common to in in were $X.X paid be quarter deliveries billion will billion which flow impacted Free QX, shareholders, expenditures cash in debt of billion paid in by Class $X.X billion, timing $XX.X stock quarter. part billion fourth server a offering securities for

Moving of our segment. begin Apps now results. Family our segment to with I'll

one and currency Family a ad or a to XX% the community year-over-year. total billion, X.X revenue respectively. of at was in on billion Apps least World vertical Europe at growth, the commerce ad up revenue $XX.X XX% contributor by growth grow, of was in across geography year-over-year of of a up was of billion, health people Family basis in on care On more XX% Apps $XX.X than and ad the Rest media. of and QX using our Family September. XX%, online to largest entertainment basis, QX Our Apps revenue with strongest constant Family daily was user Apps XX% revenue, followed continues basis. Within

from China-based North the grew advertisers. In and ad increased advertiser Impression Pacific to from growth Pacific at services ad strongest our in demand, while a total slowest-growing growth X% Pricing at up grew America growth second stronger increased XX% Europe World. America due of price XX%. On QX, improved part was rate number advertiser average impressions World by the of was demand of of was driven decelerating increased Rest our XX%, from XX%. the driven mainly by Pacific basis, growth and quarter Asia to partially across and and revenue Asia XX%, per North due platform. was served mainly of revenue was surfaces. Family total lapping million, geography driven XX%. of was ad an revenue and by our monetizing regions growth period by Business in other XX%, region XX% This Asia lower particularly WhatsApp up Apps from $XXX offset business performance. primarily impression growth, was messaging Rest

We representing were $XX.X continue operation and Apps. the of to investments Apps In direct of QX, expenses our XX% our for our Family overall of Family the expenses. majority development of billion, of approximately

revenue driven were costs. expenses higher were billion, and Reality sales. Apps XX% Family of expenses partially of and headcount-related was XX%, loss $XXX to by Labs infrastructure driven Labs was expenses, primarily representing segment, infrastructure million, lower XX%, billion, expenses offset Family year-over-year, up Apps up XX% operating expenses. Reality our QX $X.X up Reality $XX.X headcount-related by operating operating hardware was by billion. primarily margin. Within Lab $X.X income due a higher legal-related

Turning are and time. our our effectiveness primary our X over for the ability revenue deliver engagement factors that at outlook. performance: drive business monetizing our experiences engaging There community now to to that

on first, today to within improving On contribute engagement focused the initiatives ahead. the years apps that in to both investing people's the and are have we our potential in longer-term experiences

the video the spent new the map This first we're the systems phase tab introducing next We these initiatives global nearer-term unified video expect Starting of will screen we product focused in on it, on power have to frames we player Canada, Facebook continue of entered Instagram, immersive streams a the the evolution. time our time develop to daily our video to as rollout as seen year-over-year stand-alone new people both as are the On of will and well and approaches. I'll road which recommendations content U.S. quarter, to June. Since in watch work improving focus we Facebook's multiyear a XX% in seamlessly in recommendations innovative across prediction strong Facebook, grow allow that the near videos viewing Facebook we've full from results seeing a and player. month, in experience. within increase both experience we've video the updating globally In experience, more usage U.S. third and see span term.

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we we more to sets. To from deliver ranking developed and ranking the inspired video recommendations laws we start, models, scaling more which our ranking been last data time. in us launch larger to deploying capable by these of learning were new have language Facebook large our unlock with year, significantly enabled architectures architectures model gains has effectively meaningful relevant new observing However, models,

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will this However, efficiency over higher that also we number engineering optimistic smaller relevant a more while recommendations operate are to unlock leading we of time, as recommendations.

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our efficiency. of parts increasing monetization driver second the to X revenue Now this There to work. performance, are

level the optimizing is engagement. first within The of ads organic

to unification transition resulting expect person's growing tab short of than session. to our and with the grow conversion full impressions provides This to and format. Instagram, in us shift to to player, ads both our organic should video on time also drive show opportunities to where we of Facebook, continues more increasing This broader video within without video ad video. Facebook, number following this see a of a continuing serve to when supply more form enabling and work continue ads. Facebook opportunities video monetizing video continue revenue overall lower quickly we and is which the screen optimize Within to the we're growth We surfaces engagement ads. Across an like to on is the

to modeling. finding efficiency content ranking, part marketing by opportunities is gains Similar performance of enhancing performance. approaches organic ads meaningful improving to new adopting monetization are we to achieve The second

X% modeling to objectives the to increase journey better allows we've takes For new systems results sequence. that the platform advertisers in of specific enable systems seeing increase those recently first their we ads to take only expect what such person and rather which after Since new third-party sequence X% consider example, they in value. introduced to an adopted and them features optimize we we to into cross-publisher on our business' deployed learning evolving driving the ads. the measure absolute This system changes half to drive models of models the allow seen will our to incremental ad. Previously, most, without mapping account, will year, campaigns we optimization also ensure and the audiences of are techniques testing conversions together new and that that a ad than to aggregate our tools. We're a for each as Meta attributed selected in conversions and approach anticipate to respond segments. We're advertisers our value to also within ad already could their ad actions before actions settings more way new to this testing conversions customized how based our they that analytics for QX, we see In ranking conversions. the the

Finally, video there early testing We're month, tools, text and we advertisers stage. Earlier our Advantage+ performance Generative this they're solutions, creative expansion including our at expansion, with for advertisers already first strong this tools. is retention and ad even began image and with driving continued generation momentum improved seeing using video generation animation. AI-powered our generation background features, image our

available to broadly expect early next We more year. by make them

our to discuss to allocation. like capital I'd Next, approach

will different take which involves opportunities to view in in a we periods. continue of that business, portfolio the generate over expect time long-term investing We a running returns

growth accelerate our likelihood opportunities maximizing optimistic will front set us investing progress, as as compelling and both that in but to longer-term believe investing time. of to area. This the have deliver only continued very in the both scale now are of the our healthy opportunities of about core increase returns and over We each includes near-term well within not in that business talent revenue initiatives infrastructure within returns deliver

of evolved respond lead as our us glasses. this expect our ahead. we benefited can to will also its to to technology capacity Given years investments, maximize continue has we the scaling to and to react infrastructure we've now similarly the success market how prioritizing of Reality longer-term the us so Labs, position earlier-than-expected that significantly while up map fungibility we respond smart Within time road to market our in flexibility the well Generative AI, develop also developments. Within our

Moving now our to outlook. financial

fourth to range $XX in revenue quarter billion billion. total the of expect to XXXX $XX be We

guidance currency revenue based on foreign assumes total current to neutral Our is approximately year-over-year rates. growth exchange

Turning now to the expense outlook.

full of XXXX total in expenses expect We updated to prior million be the range $XX $XX billion, billion. from to year $XX billion to of range $XX our

For expect scale Reality continue due ecosystem. and Labs, development to to year-over-year losses our meaningfully to we investments ongoing operating efforts our increase further product XXXX to

the now $XX range the Turning be will XXXX full $XX to billion, billion We billion. anticipate of capital CapEx our in updated outlook. prior range of billion $XX our from year $XX expenditures to to

continue We significant XXXX. expect in capital growth to expenditure

with XXXX rate recognize quarter to any we of our fleet. On tax low expense acceleration the tax weighted growth nature year operating changes expect expenses expanded along in infrastructure our tax. we to growth as back-end a Absent be next the CapEx, higher of we XXXX to expect this, landscape, significant teens. fourth infrastructure in our our depreciation Given in and

in financial our EU business. increasing U.S. an that legal closing, and and for including could business addition, headwinds regulatory results. In our and to was landscape regulatory the another this good In our significantly the the we active impact continue quarter monitor

opportunities and our continues the call of community have ahead. With ahead business global opportunities growth on priorities momentum questions. further drive Our in longer-term We're let's XXXX across up the for core capitalize that, and Krista, open to we in our us exciting core grow. ongoing seeing to

Nowak first Instructions] [Operator comes with Morgan Brian your Stanley. And from question

to have query one how of of have time, they types and seeing about search you us over with you're I and having types those I you you sort relative sort in-house wanted one Meta offering of in then about I How talked product infrastructure of 'XX. whether X, building little what because some the for do as in 'XX your Can you Mark bit. a Mark, player just investment recurring XXXX? partner ask that interactions partnering think this commercial or understand do And lot another Susan. versus support we think then opposed sort about AI investments own about intent? Susan, you head to count sort for infrastructure all wanted to sort more to ask doing a head about and queries? And you've help of of into of count been

is Brian, thanks Susan. for question. the This

year XXX [indiscernible] it cases it on we first over usage question queries of think, the what to between for using image services, first include it I number tab more for we're Mark to around been of just people -- and all, Meta pretty case that their your And see it of deeper mentioned, over use of million are also as on interactions kinds including go used was AI. recurring generation, A has [indiscernible] And another So seeing content gathering, look use things. to AI. in the frequent time. using far. about for and end excited monetizable help continues we're popular in most to progress be track so the how on of many early world with journey, we're information obviously It's the full monthly actives. And assistant people seeing that's Meta to our by interest AI of be very its but

crawl the and train that Google, other experiences. online, we of timely The our and variety for We've users, from companies, of results for it whom the your with of Like our web a purposes. address second Bing great sources publicly from part on search search to also partners. models across question, both questions Gen content AI integrated draws provides available is web AI from we and Meta content those engine offer

are 'XX. are how I as ongoing ROI was question give XXXX. priorities And what why Reality we're call. about for looking Gen where strategic either really, That's budgeting an that with thinking through to we working investments us through But what that we're of there And we count we're processes head those at working are looks each Labs, guidance in regulation focus changed compliance. And opportunities invest second guidance in for forward-looking to we this, in the think, in maybe next to approach we're around Your still our part our is. opportunity continuing our in and streamlining and our eye measurable AI, supporting really towards includes what evaluating operations monetization, infrastructure, or looks by elsewhere. strategic like, like really depending area the on the on our opportunities the

So to we where are share little head count a that you of don't flavor about specifics gives bit XXXX, have in the process. but we budgeting growth in of the

Your question with Goldman Sheridan the next line of comes from Eric Sachs.

return your and internal to sound they you learnings are because back on that building about accelerate going what that you and go one about to terms you opportunity bit about understand about I in through think to the maybe to into ramp to portfolio learnings your even to just for platform, I comments and from wanted the process. planning product go learnings what you potential continue you apply what Mark, are just optimistic your do your question better business continue now Mark's a as key key want processes to deeper when AI the through go as profile? quite learn little Maybe Brian process? biggest the sets of and

a to I think the variety products. seems wide of here just very main applicable point broadly it is that

from really create our the valuable of Meta relevant are our completely didn't across of relevant have This ads question aspects have things business, all is then AI are out core single like kind to something areas helping business glasses feed are that's to, AI is Meta we products it a there, AI as relevant to of part services, is more the We enable more with agents, both and making business these going the helping to the that that and interacting going entertainment. Reels different better important. It's I assistant over of people I ramp a think kind things. There terms new of before more or consumer we'll of create the year, our any rolling we advertisers work that for consumer use ask and like something people that, around integrity also wide AI people operations we like content and Meta kind generate agents ads core around really before. AI important also like that lot people variety to ingredient more didn't a but of these creators that there but that and with AI types opportunities for year on in Studio. ones So whether compliance they other making be next of are Ray-Ban think very cases, more different want, helping can there's see do focused it's to different of of all of Studio new

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massive next Some AI Studio, are be think of the ones years. monetization few few will years, lot opportunity. aren't are profit things those in there necessarily over Meta But which and the of on business AI next engagement around the I a longer-term core or

going opportunity. we that's what people large very, very just to sure trying this towards we we're and the the that think amount working view I of right So on make investment get that as a right we have

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

more Meta talk to Maybe platform AI, complex time just more I understand Mark. context It more. some are longer the expand cases mean, beyond think just understand just like something as today. on you functionality into CapEx, are queries? And the over as suggesting Maybe just you on run just sounds can trying how guidance billion in helpful introduced, people the about of is $XX then, a that XXXX? using to should the use agents billion of follow-up XQ first Susan, CapEx certainly $XX we and payments to XQ expect how about in your rate And into pushed to that bit comment little on a with some really quarter?

update, much can Meta we're intentionally the X I that I new of major I be we're -- are with modalities and to. that, and now take AI that's AI. too about, going with think new capacities added. launching mean we'll that mean there to what each Llama to that comments large question, I will the ready more upfront just not that next when I that's partially sort that expect capabilities year coming that Meta I'm get I although the excited be Yes. talk -- I'm saying noted generational But about there in about

about we're today, engagement AI. that AI grow people to One this to were about where of we that a year so time. But business if of across going to think I is we year, want far ago. over year succeeded use having say AIs just a use were we're a Meta see the starting lot AI add roll that grow. more have year lot Studio where assistant, of a having ago, we depth AI we have you new trends -- about that the agents I mean, single business Meta with I'd were that There's and that. look really Meta in though to or This models power with and back do obviously having not Studio out but we and cases and AI

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So starting to to here, though, do lot year. that next about and excited earlier there's I'm a talk

Doug. Thanks,

play in a timing in So CapEx are server referred that QX increases part your was extent, that question server expected you and QX the CapEx. of that servers at these to CapEx. in second The from because But late landed about with QX. these to is step-up spend from deliveries data center had lesser dynamics comes we QX

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

cost I think question time. I'll this a ask

is are to use big Just areas? gains I you count and in head think know your group? cost time. second, count head other how Susan, thinking are productivity to seeing as internally? growth AI productivity, AI flexible employee in more got And But you your about how And R&D of about able utilize one the I you

at so both Justin, take I'll a crack of those.

On I the AI it's certainly about. we that that excited right have sharing particularly now. that productivity, of and very use know don't we're employee quantitative anything something we're

we've coding. where that been we efficiency like different reduce time opportunities are generate productivity areas savings increasing can costs internal there AI focused with of in terms and through think in on over I

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coding opportunities small functions and time. On on to still of mid headcount. budget. question There G&A sort productivity in focused lots we and big hope teams about what We're second have moderation We it. -- opportunities of your areas again, will like really content be we're over are

the make very very is rigorous those bucket opportunity about to investments, what likelihood in are where as the about and areas evaluating and Reality very medium- invest sort is we to good investment we we some where about the we in We're we of and and opportunities. can includes return Gen Labs. things also can think is evaluating time. and about and business those deliver count think there the infrastructure we much is head way the what of to there's the think includes incrementality efforts we're we strategic needed a what returns support in the ROI about returns then But that how on us think AI near-term opportunities investments ROI-driven and those of to the more is assessing aggregate that look So investments of this of the share -- that when for think of are we're opportunities really and in don't there at definitive our there it. basis. And where of we time, core we're same a what our the like sort all long-term at It have

so we which or company in they we sure into including that thinking of XXXX. With do infrastructure that can what way is, how expect are what one either the flexibility in kind on the of about they efficient we more areas where portfolio assessing a head we were we the again, whole making that plans. will really in would efforts of count be that focused making And in things of be -- we're investments and And second in we're feel sort can we think efficiency 'XX. most build we're thoughts, company, kind we're to couple the to our could those additional all like we of a about count think push 'XX is across than continuing head the broadly

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

quick Just ones, X Mark.

So the back improvements flow becomes a will I Llama more ideas could that guess, And lines inside along in the of Llama the standardized to using lots bit how you that? new used you I different are by more dig just of something said guess, incubate Meta? more building You business. to series the are on in vantage being little models AI. point meta things of core developers

one mentioned that hundreds of the billions Gen And then compute the AI. assuming Connect kind you reach goals Meta of second scaling is, laws podcasts may of on to question after hold of we around our CapEx need up,

energy ASICs at infrastructure of some Meta? conceivably Just could other any constraints guess, much custom amount by or you up could on online stand factors? given get the around how So that compute color I speed quickly we or the that more which of

There's stuff and more to publish that can couple I Llama researchers say Meta or color flavors. some the back AI examples I'd then Llama Llama here with I the incorporate work open around costs place, up both stack. Perhaps mean, us of of in into standardized I our is if being importantly, had try huge to of When cost. Meta a improvements the to Yes. a it a independent and efficiency the are then us really so the we better and that very because was us doing effectively, AI expensive. way are XX% of the run becomes are available, more on compute that compute, being then products they like we shown more open it come found a -- the can flavor mean developers bit And someone -- money. and quality had it AIs easy for to obviously also counterintuitively just the that are into the our that We because this. that and that who and suggestions people designs run and that that this we or leaning they and Studio Business us. they architectures valuable do and and why -- they and helped why compute work that will publishing experience give some of Llama, is open improvements it it got lot that by save this in is more. on source out efficiency for the it's into the very flavor. work our sort sort figures ended of on is just do There first amount much part if with make and a for industry save we sharing --

optimize -- infrastructure specifically a that Llama What the adopted Llama to Here, benefits more, chips one gets which more of and well, like their clearly seeing of as the folks seeing run lot chips big we're AMD there. is you're NVIDIA costs is us.

was our Llama, island rather of So standardizing were makes products than if it using just it kind building everyone right, who's around no a benefits but we model on an better, that the one industry.

way. what of we're So and think why it's an I do good around to this that's open us some seeing Llama in for business

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to seeing proud do. expected I'm good doing this. to hoped we -- beginning something And the expenses, out think to world-class on. And that this team quite we'd infrastructure that team a is On going what the but the year think had hear been significantly So way are will kind quite is are to part the think, to the able in year. a than, the why do, of is the happy well. large we range potentially the maybe kind year, we're that. But of here for building growing execution capacity. big. been building that of more in We're out executing thought infra that And think, continue have of investors we're actually models able of keep we're great that's out of to executing near investing going of the want that the right? expenses the out that's, I it's formula course that of goes pace that the think well the somewhat deliver over this year, at to into more up I it that reflects while part teams mean This faster, part I we've thing. able -- term products. I whole work towards this not and amount what the can side, of we just infra what I'm could And is we going really we higher that me as And I I I build that at stand opportunities so a world-class building is capacities think be optimistic more makes around the on and

the comes next Your with Citi. line Ron of from Josey question

a on perspective, specifically wanted pricing up but users? And pricing next steps quarter, XXX picture bigger time dynamics how also core well, the now way the next million We're the this on monetization XX% from the with becoming just app to on hear a wanted this of then, evolves the over it's Maybe more platform. time, Susan, I to product social and about your MAUs. in one on to major Threads. one apps, Mark, as I thoughts on hear

you demand just think due talked ad and improved I about performance. pricing greater increasing advertising to

little help that a us more. bit understand So

Ron. Thanks,

there. progress question We're first was making about your Threads. So good

in us build new the tell to being ranking user bringing We commitment And to growth integrate each for make of multiple of we've to of Taiwan of and insights ability good very how U.S., about continuing our account functionality on strong and we the of see and a Threads to added with over features users course perform, responsive in. that increasing markets continuing number save number post deliver features improvements more QX, user what our quarter Threads time key saw out the very -- grow. creators to on focused the also they're they're interested on on the depth growth we're and to including continues [indiscernible] and feel over basically, drafts continued an We're sort launch continuing and to Threads. like We to of engagement in QX, stack. Japan. And users we are to especially businesses

valuable with working growth and we really it deepen this Threads just community be driver pleased expect on focused as been and that revenue to don't introducing of meaningful XXXX monetization, time. are trajectory features a at Specifically, to the growth pertains We've engagement. to the again, finds and

Your per increase second question about in was ad. price average the

performance driven strong And in grew is also. demand from in part better time part over advertiser slightly growth growth that we that XX% CPM lower QX, of ad because impression in So QX. and that saw XX% experienced year-over-year, by because of accelerate we

because time, more conversions faster What the on an value lifting or cost effect different goes those input all per as many into cost into broadly, impression objectives better one And per really grow of in the advertisers complicated And there's have growth. seeing ad, as getting that over more price growth basis. But at a that are for result healthy we're And rolled advertisers? action continues that, make for conversion and about more There those served conversions of we that is trends, get about will the hard reported conversions to metric, very are reported we ad growth different per think impressions. to resulting pricing are the metrics. compare we driving which things in growth, are advertisers that up that get long growth. to is that so But are. focused delivering delivering and are as the very we Are is them and optimizing higher of continue time? the it. value this lot impression should the we sort per they than have from growing, CPMs apples-to-apples because we're price a we impression things to year-over-year we blended on which over values The lot conversion auction including like objectives fluctuations per dynamics feel of care

line the from of Fargo. comes Wells question next Your with Gawrelski Ken

-- is we of on I consumer specifically know side, the think agents, of enterprise curious, how -- bigger you side? I'm cetera. do of think I et seeing But we're from more proliferation applications, picture the have a on like ecosystem applications third-party -- we are far AI AI you the of here the see a proliferation kind kind seeing And the question the when more see we internet? does infrastructure do how in about as well. now when But you're how -- until consumer key internet of think of mobile out and space? itself how an also desktop would player as Meta in those think applications one seemingly and we far and

So I'd your love there. thoughts hear to

of be as with those on. that products of experience. lot Llama, build Studio I I app AI and of parts really consumer bunch, that the on there expect AI are I be lot touched good able and Yes. And consumer developers Business too. Meta mean to things, would a will a important and to working I've AI a we're expect

company, you. content now friends. your we from where algorithmically this that opportunity Another content and too. We're going and to be as can then posting your big that not for trends from to not in makes the were and look part started valuable even feed interesting right? quite history from went of people is that percent basically It were the be creator as a determine at help feeds large that better. from to following experiences is I directly. of content Facebook just on And if the the added we creators people's in be over that is content you in very -- people just the create haven't you're it off It engaging AI friends all Instagram the -- its friends, updates But things. there much recommended may era we about talked could into So yet

think be we're pulled of or summarized I feed some together the maybe generated to category by AI for to I for kind that, and just content in or new exciting of Threads a kind that's -- Instagram whole existing experiences think add going of or other AI Facebook going is And content, And which time. very way. content AI and over

different know really know to that things yet. what's if well around we're to test we something this. starting It's going I don't work exactly

that going the of whole business my be is in big things this going be guess. get that AIs and think do is going Some things to I several are a trend years, But that, Meta high AI get the I Llama would But I lot a of an next have confidence on X. business applications. important you're to be that promising. Studio, 'XX important there you're to impact know would over one don't the this going to and that with developers AI, isn't

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

AI Mark, anything provides now it the Meta appears pretty that conversational calls web current and answers about including events. much

there And in your so of offerings with over one the [indiscernible] advertisers core million out business. best and

wondering plans and queries, ads already that Just for AI a are maybe commercial you to move queries there Meta engines are billionth real to the answer testing on seeing? start closer any if becoming guys

think $XX north Labs around the then Reality products what or you And pushback one are billion and potential ongoing couple this of is, question the getting have is think, peak the of of Susan, we alternatively, get do biggest next I year, areas $XX The the biggest there, losses years? closer we to there last year. there probably losses billion of any over

I'm these, Youssef. both happy to of take

commercial queries. first was question ads plans on provide your to So on

now, really broadening And in think I world there. be with this a dial earlier I we as sort queries and to I we will consumer say think experience put is monetization set really opportunities before look think possible. as people maybe playbook Meta we're AI exist for. experience time, on that get focus right alluded when that focused the now, question. will focused would what we out use really we over a a the the of us of Right it experience a I we as making there products Over time could consumer on . But in consumer are we like. where much the this the monetization above in all and that engaging on valuable for

second of Reality question is part about Labs. The your

we're we expectations certainly, certainly we sort XXXX where thinking about about We of think our energy. putting XXXX we make Labs, sure And to as aren't want focus sharing process point. Reality the we're are budgeting beyond and for this at

progress as as very are of the we've We again, well smart excited, the consumer seen interest glasses with our that strong sort them. in about

priorities, is kind that clearly And as want ambitious strategic where we sure be of map we in and are we product consumer significant the see. Labs appropriately thinking investing momentum out towards Reality it long-term have we area we behind expect of an so that one our we're of we road to make Overall, will that build investment the say about very I'd there.

Krista, question. time one we last have for

question comes last of line from the ISI. Mahaney Mark Evercore Your with

questions, can the please. which events a is a X in lot this ad be just throw India not and but elections in me in Let major of we've Europe revenue, and sports that One, had next U.S., that major year there's where nicely the unusual far away events driving how just now is the are would other call But could are revenue. could about little like X-year you one impact of in an some World where things. how there may these years Susan, and feeding they that future, thinking Is secondly, anything ad the of Cup and or know I what's in year much you the just other versus we out, comps like any, you about for maybe from think road, it then It monetization messaging really every or optimization? be business part about sounds WhatsApp now? talk more . And in events? help X like a come with and us have bit into down levels from are X monetization where X

Thanks, Mark.

that of first you about occur years. was question So X in XXXX, revenue events backdrop mentioned once every X sort or your

Olympics. We We contribution about Olympics. this from was like meaningful we're believe not the imagine the largely I events talking historically incremental the year. case that So have

we something continue in revenue possible when think range We advertisers. But try a think healthy macro accrue and to we demand that and into continue to we we of expect improving of next from that that So our about growth about obviously, advertising benefits reflect QX to the to we investments global outlook benefit there's when range we've guidance ads to performance, that that's big the going backdrops think seen. our the generally year, we'll in give.

of -- So revenue a we had of type I idiosyncratic that would don't impact. events are say of there XXXX specific lot material sort know that a to but

click-to-WhatsApp now, strong. question is growth this particular, And are. was Your remain say, where in again, in click-to-message traction continued is around particularly really here. in area right and would And second what We're WhatsApp for adds seeing monetization big I we area. the focus us

focus to consumer ads has strong seeing continuing click-to-WhatsApp click-to-hatsApp line. both the in scaling will like opportunities good down in scaling bigger in adoption U.S., the example. we're U.S. of markets the in to in so WhatsApp create obviously on continuing Brazil, we're adoption also, invest and And ads earlier are user but more It's WhatsApp where and which for growth

they we're for about. that to So sorry, then, events -- particular for of and click-to-messaging helping course, lot particular advertisers ads and -- the make that doing a to the the more of conversion work focus care effective -- optimize, helping

was the in conversations increase adopting up in business. XX% volume a in well of continues It quarter. by revenue as is Family in and a volume messaging Apps revenue to which of paid growth driver say, element of of we're would remains in QX, this the grow the of strong I on driven as at generally number again seeing other other The paid that line, businesses -- messaging in strong WhatsApp, both fact, our growth conversational the primary per pace paid

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

disconnect. for now and Thank call. you conference today's concludes This you may participation, your