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

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Search at Facebook is another important effort that we expect to create a lot of value over the next few years. In this quarter we launched updates to Facebook search to make it easier to find content and posts on mobile and desktop. We are going to continue listening to feedback from our community and taking the time to build a really valuable product here. We are optimistic about our ability to deliver value that only Facebook is able to provide.

Working with developers is the other part of our strategy. In this quarter, we continue to make progress to helping developers build, grow and monetize their apps. In October, we rolled out our audience network around the world and since then, the number of apps in the network has nearly tripled. An impression served by the network has more than quadrupled. In 2015, we will continue to build upon our long term goal of making Facebook a truly cross platform platform that allows developers to share their work across every major mobile platform and we look forward to sharing more details at our next essayed event at San Francisco this March.

Finally, let’s talk about our plans over the next decade to connect everyone to the internet through internet.org and to develop the next generation of computing platforms with Oculus. Internet.org now has a lot of momentum. We have launched free basic internet services in Zambia, Tanzania, Ghana, Kenya and Columbia. More than 150 million people living in these countries now have the option to connect to the internet using internet.org. We have already connect 6 million of them to the internet who didn’t have access before. We are very excited by internet.org‘s progress and the level of interest we are seeing across industries, governments and our community. 2015 is going to be an important year for our long term plans and I expect us to share more updates about our progress year over the coming months.

Oculus continues to make progress towards the future of immersive experiences that are part of daily life for millions of people. This month the team had another good showing in CES and develop our interest in Oculus platform continues to grow. So that’s my update for this quarter, it’s been a good quarter and a good end to an important year for us. I want to thank everyone on our Facebook community and our employees, our partners and our stockholders for their support. Thanks to you our community is growing stronger every day and are making progress in making the entire world more open and connected. Thanks and now here is Sheryl.

Sheryl, COO
Thanks Mark and Hi everyone. We have been strong across the board having a great year. This is our first quarter with over three billion in ad revenue and over two billion in mobile ad revenue. Our q4 ad revenue grew 53 % year over year, our mobile ad revenue grew 69% of the total ad revenue and doubled in the past year. Our growth is strong across all verticals of marketers segments. We also saw healthy growth around the world although growth rates outside the US were affected by exchange rates.

Looking back at 2014, our teams made great progress on our three main priorities, capitalizing on the shift to mobile, growing the number of marketers using our ad products and making our ads more relevant. We believe that the marketing increasing understands that we have the leading mobile ad product and are the only platform that delivers people based marketing at scale. The shifts in mobile is changing the way people consume video. As Mark said, video grew dramatically on Facebook in 2014 especially around global events like the world cup and the ALS ice bucket challenge. In just one year, the number of videos post per person on Facebook increased 75 % globally and 94% in the US. Today, over 50 % of people in the US who come to Facebook daily watch at least one video per day and globally over 65 % of Facebook video views occur on mobile. Marketers have followed this trend and are using video to help people discover and learn about their brand. In q4, we expanded auto play video as internationally.

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