Facebook Inc (FB) Earnings Call Transcript: 2014 Q3

Sheryl K. Sandberg, Chief Operating Officer, Director, Facebook

On a tag, I think we are in the middle of what is very fundamental shift from marketing that is cookie based on a PC, one desktop, to people based marketing on multiple devices, to marketing that is primarily for online sales, to marketing that affects both online and offline sales on mobile. So, decor right now in a pretty big shift and we are not close to fully deploy there. We have a lot of pieces to do. Our Adlesse 3 launch is new where we are first growing our client base and we are pleased with our progress there and we are putting those other pieces on place on audience network or eyebrow. So, I think we are pretty far of being fully diploid on even this big shift. But I think in our industry nothing is ever fully diploid, that as soon as we catch up here there is going to be another movement and something else that happens we have to react to and build the technology for. We are long term company, run by a founder with a very long term vision and we want to keep our eyes ahead on these changes in technology and keep deploying the answer.

Operator

Your next question comes from Ralph Sandler from Deutsche bank. Your line is open.

Ralph Sandler, Deutsche bank

Thanks! I have two questions – one for Mark and then a group one for Dave. Mark, I don’t I heard you mention payments in the 3, 5, 10-year plan. There’s been some speculations of payment offering within Messenger. Can you give us a sense of high level of what you envision Facebook potentially doing in the payment space longer term across merchant payments, consumer products like sending and lending or peer to peer and the how do you see social interaction tied in with payments evolving? Does Messenger make payments then what’s out there on the market? And then Dave just a clarification. So, the high end of Q4 revenue guidance seems a pretty sure drop off even normalizing for some extra currency hit. So, are you seeing anything there that makes you concerned about pacing into the quarter or is it largely business as usual or is just a tougher love large number situation?

Thanks!

Mark Zuckerberg, Chairman of the Board, Chief Executive Officer, Facebook

I will start on payments. So, payments is an important part of online business eco system but we’ve traditionally thought about this is something that we are going to partner with other companies on to enable great solutions rather than trying to compete and o it as a business ourselves. The reason why we are taking this approach is it is very important for all online businesses and our customers and partners that there is a good online payment system. I mean, people run ads to get customers and sell products and in the end of that conversion if there is good payment system that is smooth then people will buy more things which ultimate makes the ads and the whole online flow more valuable for those partners and therefore more revenue in profit for our business as well. We view the ad part of the business as a more efficient part of the business then payments itself.