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

Page 2 of 15

To serve the entire world, we need to build products that serve our community and allow people to share different types of content with different audiences. We need to offer new services and infrastructure at greater scale, but we need to create new tools and innovate to solve fundamental challenges in the places we want to connect. During this will take a lot of effort over the coming years and Facebook is going to have to evolve. Similar tour transition to mobile over the last couple of years, now we want to really focus on serving everyone in the world. Our mission has always been to make the world more open and connected. This is something we have been preparing for over the last decade. Everything we have achieved in 2014 and over the last 10 years has helped us to build the foundation for a future of greater scale. I am excited for our progress in 2015. Now with that in mind, I want to talk about the figures we expect to execute on over the next 3, 5 and 10 years.

Over the next three years, our main focus is to continue to serve and grow our community by delivering better services for people and businesses around the world. One side of our continued growth and engagement is our progress on visual and public content. More than 2 billion photos are now shared daily across Facebook, Instagram messenger and Whatsapp. Video grew significantly this year to an average of more than 3 billion video views per day on Facebook. But we now have more than 2 billion interactions every week on Facebook between public figures and their fans. Instagram is also growing in helping people share and consume the most engaging content in different communities across the world. Instagram reach 300 million monthly actives with more than 70 % outside of the US. Average time spent using the app continues to be very strong compared to other mobile services. Across Facebook and Instagram we have done a very good job on engagement, a special one comes to helping people find and consume content they like.

In 2015, we will continue working on this as well as developing more ways for people to share even more of their moments they care about on Facebook. Five years ago, most of the content showed on Facebook was text and some photos. Today it is primarily photos with some text and video. Over the next 5 years, we want to keep developing new products and features to help people share the way they want. When it comes to serving businesses, we have continued to help drive results for businesses of every size around the world. Last week, a deloitte report found that in 2014, Facebook created more than $225 billion of global economic impact and 4.5 million new jobs. This is an important reminder of the big opportunity we have to create value for businesses and while we are committed to serving them well. In 2014, we invested aggressively in improving our Adtech and measurement tools, we are going to continue in working to provide new capabilities for marketers. Sheryl will talk about this more in a moment.

Next, lets talk about our efforts over the next 5 years to build the next generation of Facebook services. We expect Whatsapp and messenger to connect hundreds and millions of more people and become indispensable services for the world as well as important contributors to our business. Messenger and Whatsapp recently achieved impressive new milestones. In November, messenger reached 500 million monthly actives and at the beginning of January, Whatsapp reached 700 million monthly actives with more than 30 billion messages sent each day. These numbers speak to the quality of both products and the size of the opportunity ahead to help billions of people communicate and collaborate.

Page 2 of 15