Facebook Inc (FB) Earnings Call Transcript: 2014 Q3

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

Before we get into that I will quickly answer the hardware that I wasn’t given the chance to answer on the last session. We actually do more with hardware than it is apparent because we design with folks to build up all our data centers there. So, I think if it ever becomes the right thing for us to focus on from a product prospective we have some of the skills there already. When we were thinking working with Oculus that is actually one of the areas where we can help because we’ve build a supply chain team and we’ve been pretty effective at delivering. What we needed to run Facebook is this large system at scale. But I think there is huge amount of value in delivering these network and software services and that is where you should expect us to focus on the things that we’ve talked about.

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

At the question about the role out of products. I think the usual way we do things is that we roll products slowly and then we elevate. So, one example is custom on aces and roll out custom on aces and then with add that website custom audiences to target at to people who use websites and the mobile app custom audiences. As to people who visited mobile apps and one is building on the next, building on the next. Similarly this month, earlier this month we launched local awareness targeting. It is a new option that allows local business to reach nearby customers and what we saw there weren’t a massive launch. It was a small launch. We enabled this targeting, get people to use it and we will develop it. Then, there are these options such as Adlesse. Adlesse was one big launch that we are still on the process of doing and that is really because it is a product we bought and needed to rebuild. But for the most part our product development tends to be very adverse and that’s what you can expect from us going forward.

Operator

The next question comes from Yusuf Qawwali with Kentor

Yusuf Qawwali, Kentor

Thank you very much! Mark you recently came back from China. How do you think about that opportunity and what gives the confidence that you can actually be successful where so may have failed and then second on Instagram we’ve seen some very complimentary data that shows that Instagram is actually becoming more popular than ever with some brand marketers.just wondering what are the best performing apps formats on the platform right now and where is the ad load versus where Facebook is?

Thank you!

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

Sure. So, on China we were already doing more in China than I think a lot of folks think about and a lot of Chinese businesses use Facebook to grow their export businesses and help find customers around the rest of the world and grow the Chinese economy there. So, that is actually a pretty meaningful thing for us already and we always are looking to find ways to help businesses around the world to grow. And that will be just for long term sake.

Our approach to China and all these and every country is very kind of long term. We are going to be here for decades and we want to create good relationships these countries and businesses around the world that will help and grow over the long term. On the Instagram side I think we are pretty early. There have been a number of good ads both video and images that I think have been pretty effective but it is very early in the gross phase at this point thus top priority for Instagram is to grow from 200 and more and eventually connect billion or more people and I think that is something that should be possible and that’s what i am really focused on and excited about while we started building out some of the parts of the business as well.