Facebook Earnings Call NUGGETS: Yahoo Patent Deal, Steady Engagement Growth
Yahoo Patent Deal
Spencer Wang – Credit Suisse: I guess maybe for Sheryl. I was wondering with respect to the Facebook advertising exchange, based on some of the initial tests, could you just talk about how that may impact monetization as you roll that out? Then the second question is on the Yahoo! patent deal. Just beyond the IP can you talk about or providing details on the advertising partnership or the expanded distributed agreement part of it?
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Sheryl Sandberg – COO: (Indiscernible) real-time getting offer, which was advertisers getting real-time on a specific ad impression. The goal of this is to show people more relevant ads. This is something third parties have been doing it across the web for a while. For us right now we had a very early (officer-based) test that we don’t have more information this year, but we’re really encouraged by how interested our advertisers and customers and because this is then an opportunity to connect the users, our users that they are trying to reach to other things they do across the web. On the Yahoo! deal, the Yahoo! deal had two parts. The first part was a cross license of all the patents and the second part was the partnership where we’ve worked with Yahoo! on (10-fold) anchor events such as Olympics. We were really pleased to sign the Yahoo! deal because it really extended the platform relationship we’ve had and really brought us back to what was a very good relationship we’ve had historically with an important client and I think we’d also like to take the opportunity to congratulation (Martha) on her new job at Yahoo!.
Steady Engagement Growth
Mark Mahaney – Citi: Two questions for Mark. You talked about the engagement. Have you seen any trends in terms of engagement with the younger cohorts, anything that indicates the decline in engagement? Then broadly, how do you think about the size of the Company Facebook relative to other leaders in the technology space runs pretty thin. You’ve tried to have a pretty lean organization as you think about the three elements of the three broad growth areas for the Company in the future. Do you think you – is there any change and you are thinking about how big the Company physically needs to be?
Mark Zuckerberg – Chairman and CEO: Sure. So, just to take the first one first, I think what we’re seeing is pretty steady growth in engagement in all these cohorts, including the younger ones. So, really nothing out of line with the overall metrics there. On your second question about the overall size of the Company, we’ve always been significantly smaller per employee compared to the number of people who we serve in the world. So it’s really based into the Company that we have to build systems and software that take into account to leverage that employees you have and that’s actually one of the reasons why a lot of people love working here and one of the biggest reasons why people (sight) for wanting to join the Company and staying here. So, it’s also affected the strategy, right? I mentioned, we believe that all these consumer products and maybe even more than consumer products that people use will become social over time, but we can build all those things ourselves, so we focused on building the Spot Farm. Over time, it might makes sense for us to build more of these things ourselves, but because of the scale that we’re at we really focused on the three things that I laid out today. This shift towards mobile is incredibly important, building the highest quality applications and products is really critical, building a platform so that the million more developers who use Facebook can build this product. It’s the highest leverage thing that we can do and we think that social ads are just going to monetize much better than non-social ads as we increase the percent of our overall advertising that has social context in it, so that’s kind of where we are, and we’re basically growing by trying to find as many talented engineers as we can for the most part, but I think, for the foreseeable future, we’re just going to be way smaller than other companies that address significant or comparable size user bases.