Q1 2014 Earnings Call Transcript

Transcript Call Date 04/23/2014

On mobile, app installs has been one of our best performing ad products, driving over 350 million installs to-date. Over 60% of the top grossing apps on the Apple App Store and Google Play use mobile app ads, which is pretty impressive performance for a product that launched in January of last year.

On desktop, games continue to be popular on our platform and over the last 12 months, desktop game developers generated more than $3 billion in payments volume on Facebook.

It's worth noting that even though our mobile and desktop products seem completely different, they're both delivering the same value to developers. The ability to reach a large targeted audience. That's what we provided and regardless of the format, we will continue to improve this value. We see a big opportunity to continue improving the relevancy of the ads people see on and off Facebook to help mobile developers better monetize their apps and to help provide greater reach for marketers. I look forward to sharing more details next week at F8.

Finally, let's talk about our efforts to build the knowledge economy. Building the knowledge economy is about building out the technology platforms the world needs for the future, so everyone can use information to do their jobs better. Advertising and the ability to reach people more broadly is one of the most important technology platforms for achieving this, and we're investing a lot to serve four major kinds of partners, small businesses, brands, developers and e-commerce partners. After introducing News Feed ads which increased the supply of ads in our system while recent efforts have primarily focused on improving the relevance and quality of these ads.

To do this we have been working to improve the visuals we provide for marketers. So they have access to better targeting capabilities, simpler ad product and more useful measurement tools. Our approach is less about developing new products for marketers and more about improving existing ones and helping businesses use them efficiently.

Our goal is to make our ads as interesting and valuable as the organic content that you find on Facebook. So that more people find ads useful and businesses can engage effectively with our community and grow.

Our most recent data shows that this approach is working well and we continue to be really encouraged by the feedback we are seeing from people about our ads. There is still more work to be done here and we've shown that we can continue to serve our community well while also growing a healthy business.

That’s my update on how we've been executing our strategy over the last quarter. It's been a busy quarter and strong one. We are proud of our progress as a company and everything that we're accomplishing today. In large part this is due to the incredible quality of our team and I am very grateful for the support of everyone here at Facebook as well as our stock holders and partners as we continue working to achieve our mission.

In addition to thanking our employees, I also want to thank one person in particular, David Ebersman, who is stepping down as CFO after almost 5 years. David has been a great partner in building Facebook he set the right tone about operating efficiently. He set us up to make the long term investments we need and most importantly he's built an incredibly strong team including Dave Wehner who'll be our next CFO.

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