Q1 2014 Earnings Call Transcript

Transcript Call Date 04/23/2014

Operator: Good afternoon. My name is Jay, and I will be your conference operator today. At this time, I would like to welcome everyone to the Facebook First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you very much.

Ms. Deborah Crawford, Facebook's Director of Investor Relations, you may begin.

Deborah Crawford - IR: Thank you. Good afternoon, and welcome to Facebook's first quarter earnings conference call. Joining me today to talk about our results are Mark Zuckerberg, CEO; Sheryl Sandberg, COO; and David Ebersman, CFO.

Before we get started I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements and actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in today's press release and our annual report on Form 10-K filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today and we undertake no obligation to update these statements as a result of new information or future events.

During this call, we'll present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release and an accompanying investor presentation are available on our website at investor.fb.com.

Now, I'd like to turn the call over to Mark.

Mark Zuckerberg - Founder, Chairman and CEO: Thanks Deborah, and thanks everyone for joining us today. This was a busy quarter and a strong start to 2014. We continued to grow our community and size of engagement with nearly 1.28 billion people now using Facebook each month and almost 63% visiting daily. We also reached new milestones as a mobile company, with more than 1 billion monthly actives on mobile and almost 55% of our daily actives only connecting on mobile.

When you look at our business performance, we've also made some good progress. Our total revenue grew 72% year-over-year. Our advertising grew 82%, our strongest annual growth rate in nearly three years. And mobile accounted for 59% of our advertising revenue. These results show Facebook's business as strong and growing and we're in a great position to continue making progress towards our mission.

This quarter we made a number of big investments in our future. We reached agreements to acquire WhatsApp and Oculus and we announced our new connectivity lab that's focused on developing technologies to extend Internet access around the world. These are important efforts that we believe will help us continuing making progress towards our mission over the long-term. But as this quarter shows, we're also staying focused on execution and carefully improving our core products and business. Execution gives us the strength to bet on the future and our success over the long-term depends on us serving our community today and delivering it into our current strategy.

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