Zuckerberg said that users’ demand for the platform community is increasing due to the epidemic situation From Facebook

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The following is the Zuckerberg said that users’ demand for the platform community is increasing due to the epidemic situation From Facebook recommended by recordtrend.com. And this article belongs to the classification: instant messaging , Picture sharing, social networks.

On October 30, 2020, social network giant Facebook（ NASDAQ:FB ）After the U.S. stock market closed on Thursday (early Thursday Beijing time), the company released its third quarter fiscal 2020 results. According to the report, Facebook’s third quarter revenue was $21.47 billion, up 22% from $17.652 billion in the same period last year, exceeding Wall Street analysts’ expectations; net profit was $7.846 billion, up 29% from $6.091 billion in the same period last year; diluted earnings per share was $2.71, up 28% from $2.12 in the same period last year, exceeding analysts’ expectations.

After the release of the financial report, chairman and CEO Mark Zuckerberg, chief operating officer Sheryl Sandberg and Chief Financial Officer David Wehner held a conference call to introduce the company’s operation and financial situation in the fourth quarter, and answered analysts’ questions on the spot.

[Q3 earnings season hits]

The following is the transcript of the financial report teleconference:

Morgan Stanley analyst: the behavior of consumers is very different among different products on Facebook. Please talk about how the behavior of users on this platform is different from that before the epidemic, and what surprises you? What is the impact on your product prioritization to ensure the best value for your advertisers? In the 21 years of opex guidelines, including R & D and technical personnel, what kind of project or strategy will the management adopt to ensure that the next year will be better than this year?

Zuckerberg: in terms of user behavior change, I think the first one is that almost all consumer behaviors on the platform have increased, but this should only be temporary. Well, it should return to the normal growth frequency later. Then, the second is a more lasting and continuous change, that is, we can see that the connection between users will become more and more In addition, we have seen an increasing demand for the community, which may be due to the fact that people feel more isolated and lonely during the epidemic period, so the demand in this respect will continue to increase, and we will continue to invest in the community to strengthen our infrastructure, Protect people’s needs.

The other thing is that people have more time for entertainment, so we see that the use of video and games is increasing, and this trend will continue. So we don’t know whether it is a one-off substantial increase in consumer behavior or a long-term trend that will continue. But at present, we don’t see any sign of this Everything will return to a basic growth trend.

Weiner: we have made a lot of investment in different products. I may have mentioned that we invest in AR and VR in Facebook’s AI Lab, and continue to invest in applications such as messenger. Another aspect of the overall spending guidelines for 2021 is that if there are more places around the world, people can return to normal work, we will see There will be an increase in office operations and travel costs. In 2020, we will now save about $1.5 billion in this area, but in 2021, because our number of our employees will increase, so will the cost.

UBS analyst: what is the focus of computing platform investment in the next 3-5 years? Facebook’s innovations in business, such as instagram shops and checkout. So how can we ensure that during the outbreak, the next three to four quarters, these commercial innovations can be realized? How can they attract those advertisers?

Zuckerberg: on the computing platform, there are VR, AR, and the operating system of spatial computing. We want to achieve important phased goals. The first one we hope to achieve in our VR system is 1, Only at this time can the whole ecology realize its self-sufficiency and speed up its development. Some independent developers will put the oculus platform in a more important position than other game platforms. In this way, the number of users is large enough, and the profits will be more. We are also investing in a lot of content, and we hope that in the next step This will be achieved in the next few years.

It will be more difficult to build our ar business. In fact, people can carry out VR at home by themselves, which is an immersive experience, and the equipment used will be very small and comfortable. But it won’t be what you wear when you go out. What you need is a more fashionable device that can be accepted by the public. A lot of technical problems need to be solved in AR to make these technologies applicable to consumers. So we need to make a lot of technical progress in this area.

I don’t think this product will be available until a few years later. We will share some VR and AR technologies, such as spatial computing. We will also adopt some technical effects, and we will see that people will use it on messenger or instagram. There are a lot of people who will contribute to this kind of technology. All these factors need to work together to make the whole ecology work. I am very proud of the progress our team has made in this area.

Sandberg: we are committed to making all the applications on our platform easier for people to use. We are also committed to letting people join in the business, and combine business and consumers more closely. Before the epidemic, we have found this opportunity. Only in the epidemic, we speed up the process We have invested a lot of energy in distribution. We are now able to help 10 million small enterprises carry out advertising and help hundreds of millions of small enterprises to open stores online.

In the second quarter, we quickly released shops. Although it is still in the early stage, we are very satisfied with the progress it has made. We have just released plans to expand to WhatsApp, and we are also considering adopting the same plan on instagram and Facebook. We see that this process is really useful because we can provide all these tools to small businesses, and it also increases our advertising revenue. Let me give you a small example. There was a small enterprise that sold some small health products. Before the outbreak, they sold them in the local market. When the epidemic came, their business plummeted overnight. After that, they joined Facebook Shops, we moved his business online. After that, the return on our advertising sales reached 9 times, and their sales increased by 2.5 times. Some of our business tools can help small businesses that depend on us and increase our advertising revenue.

Bank of America analyst: previously, the management has said that the growth of final expenditure will be consistent with that of revenue, so does the growth of current expenditure indicate the growth of revenue? Has the management made some investment, which will stimulate the growth of revenue in the future? Will some products in the aspect of messaging and some cooperation projects with didi and other companies create revenue in the next few years?

Weiner: let me answer the first question about expenditure. We don’t give any guidance on expenditure. The growth of expenditure is consistent with the growth of our total staff, so you can see that we have made some progress in recruiting and retaining talents. We can see that there are many opportunities for remote work or business due to the epidemic. We have a lot of work priorities, and we are also arranging and planning a lot of investment priorities. Therefore, we expect that the profit will decline in the early part of next year, but we will not give any specific revenue guidance.

Zuckerberg: our ultimate goal is to build a business platform for messaging, using all the tools we can use, so many small businesses can open stores in shops, and automatically enjoy the rights of many different applications. We also focus on business Messaging has created a lot of tools, so that people can follow up orders, and tools for payment can help people complete transactions. One of the better cashing effects is With messaging advertising, enterprises can launch advertisements on Facebook or instagram. Therefore, our current focus is to create these commercial tools so that all small businesses and any kind of enterprises can conduct business operations on Facebook, whether instagram or messaging.

Goldman Sachs capital analyst: my question is about the management’s views on the progress made in AR and VR? So how can the management achieve differentiation in the current competitive situation? What is the revenue percentage of the top 100 advertisers?

Zuckerberg: when we talk about AR, we always regard it as a platform for the future. But I think in the next few years, we can also add some of these features to our mobile app to help people express themselves better. You may also know that we have launched some ar business tools in the form of advertising, for example, people can make use of AR It’s enough to see what a lipstick or sunglasses look like on their faces. We even think that we can realize something, and what it really feels like to put it in your home. By carrying these ar tools on our mobile phones, we can realize a lot of new and strange experiences, which can also promote the construction of long-term ar platform, such as 3D technology It is very important to build AR and VR.

Weiner: we have no updated data on the revenue proportion of the top 100 advertisers, but I can say that the advertising revenue from small and medium-sized enterprises has increased significantly. We are very happy that we have obtained a very wide range of advertisers, and then we can help them interact with users in this difficult period.

Jeffrey investment bank analyst: what progress have you seen in reels?

Zuckerberg: I’m very happy with the progress it’s made so far, now it’s expanded to 50 countries. We have released a lot of new features and achieved very encouraging results, but there is still a lot of work to be done. At present, I don’t have much data to share.

JP Morgan: what are the main benefits of the current inter rap plan? Will IDFA have an impact on Facebook? Does this delay actually give companies time to respond and minimize the impact?

Zuckerberg: This is a long-term infrastructure project. We use it to ensure that users can send messages to each other. We first launched it on messenger and instagram messaging, and now it can be used in many countries, including the United States. The current feedback is very good. It brings a lot of features to instagram that were previously available only on messenger.

One of the biggest benefits is that there is a mainstream chat app in many countries around the world. But this is not entirely the case in the United States. IMessage is just a mainstream chat app. But Android users can’t use it. Of course, there are a large number of Android users in the United States, so the application community of messenger in the United States is actually very fragmented. This always leads people to wonder which app should be used to get in touch with others. It will also make it more difficult for companies to build an ecosystem. Because companies often need to communicate with people in different countries. So our goal is that people can choose to chat on any Facebook app and get in touch with anyone in the world.

Of course, if people want to use more than one chat software, it’s just one option. But it makes things easier. This is our ideal, and we want to add WhatsApp to it. We also want to add more features to instagram. After a long period of infrastructure construction, it is a great pleasure to see inter rap running.

Weiner: IDFA, or apple ios14 in a broader sense. Apple has indeed delayed the implementation of some parts of the privacy policy in ios14. But the impact will not be felt in the fourth quarter, so it will be delayed until 2021. This will also have an impact on our online stores and our audience network. This has a great impact on app developers who want to carry out business. So when Apple started, we thought the impact would continue. So when businesses come to us for help, they can still deliver accurate advertisements in this situation. We are looking for many different solutions, but next year, we will feel a greater negative impact on ios14.

Analyst: my question is about Article 230 and yesterday’s hearing. It seems that you are the most moderate CEO among all the CEOs. My question is what kind of change do you want to promote? Is the pact act of June similar to the company’s goals? What is the cost of this change for Facebook? Sheryl once mentioned that during this epidemic, more and more small and medium-sized enterprises came to look for Facebook to transfer their business to the Internet. In this process, which formats are relatively backward and which ones are developing faster?

Zuckerberg: so far, we’ve seen how different countries adopt different rules, I think the best way to solve the problem is to refer to the practice of France and some other countries, and create a transparent procedure in which companies can report on how they conduct content arbitration, how to report harmful content and when people have to report it How far can our content arbitration system go when we give it to us.

In my opinion, with such a system, companies should meet certain threshold requirements and make improvements. That is to say, there should be some incentive policies to encourage companies to minimize the harmful content that people can see. However, there are many cases that show that some systems are counterproductive, or that some companies need to do something that is not critical If you just look at the degree of distribution of some bad content, it is not effective to make all the contents one size fits all.

It’s hard for me to say exactly how much this will cost Facebook or other companies, but I think it all depends on the language or the details of the content. I think there are good enough examples in many countries so far that we can refer to how to create a healthy ecosystem.

Sandberg: I think what I mean by “acceleration” is the acceleration of the process in which enterprises turn their business online. Before the epidemic, there were many stores or enterprises offline. All of this has changed now. We see that companies are moving their business online, and the process is speeding up. When people stop shopping, you need to reach these consumers in different ways Now we have 200 million small enterprises or enterprises using our free tools. Because there are a lot of these kinds of enterprises, many of which are doing business online for the first time, which is why we have 1, Ten million advertisers, because once you start doing business online, you need to reach consumers online, so the focus is on the overall offline to online business transformation, the growth of small businesses that use our free tools around the world and advertise on Facebook.

Truist securities analyst: online games are an emerging opportunity for Facebook. How do you view your positioning relative to some competitors in the industry, such as twitter and Youtube? What do you need to do to win the competition in a long time? Will the efforts made by Ar and VR become an advantage in the future?

On the balance sheet, cash flow increased by $5.9 billion in the past quarter. Will changes in management and higher capital gains and dividend tax requirements change the way management handles capital transfers in the short term?

Zuckerberg: there is a lot of growth potential in this field, and I personally like it very much. We can do a lot of things in this area. In the long run and short term, VR and AR will become competitive advantages. However, most people use our services to play games, and our live broadcast tools are used to play real-time games. People want to build communities. I think our characteristics and our social relations mean that we can better serve game players. This aspect has also made great progress.

We have just launched our cloud plan, which can not only enter our game field, but also help the company’s game companies get new consumers better. This is not a completely different approach, but also consistent with some of our key concepts. Games are bound together with our videos and community work and develop together. In the long term, I think VR will also enter it. There are cloud games and so on. We are also building a community around oculus. I think this will be a very good growth point, and can show a lot of innovation in the next few years.

Weiner: in terms of capital allocation, our focus is on investment in development, and we continue to ensure that all the investments we make can promote the development of long-term business, including investment in our key products, as well as investment in some of our long-term plans, such as Facebook reality lab. in the past quarter, we made an investment in jio Ping Taiwan has made important strategic investments, so this is a big aspect of spending. We also have a very active stock restructuring plan under the authorization of the board of directors. We will also consider a lot of changes in the tax aspect, but I don’t think these will change our fundamental approach.

Facebook: 3q20 revenue was $21470 million, up 22% year on year; snap: 3q20 revenue was $678.9 million, up 52% year on year Snap:2Q20 The number of active users increased by 17% to 238 million. Snap: 1q20 revenue was $462.5 million The real reason why Facebook acquired WhatsApp: photos Facebook: 2q20 financial report teleconference recording Zuckerberg said India is a huge opportunity snap: 2q20 revenue increased 17% to $454 million Venture: what will the rise of interest social networks bring? Hitwise: according to the report, pinterest has become the third largest social network in the United States. Facebook: 2q17’s products have more than 2.7 billion monthly live users. Facebook: the most important transformation in the past 15 years, and the F8 conference opens a new chapter of building a private social network. Data review and strategic prospects of the four major social networking companies in the United States: revenue growth slows down and spending increases sharply, causing Facebook’s share price to plummet 7% after hours

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