Facebook 3Q16 Earnings Call Notes

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Facebook (FB) Q3 2016 Results

Mark Elliot Zuckerberg

1.2 billion DAUs

“We’re pleased to see nearly 1.8 billion people now use Facebook every month and nearly 1.2 billion people use it every day. It’s also great to see the continued growth and strength of engagement on our platform, and our ads growth is growing at a healthy rate as well. ”

We have 33k bots live in messenger

“So I mentioned this stat earlier that we have about 33,000 bots that are live in Messenger, including experiences across a range of verticals, from news to e-commerce to local businesses and all kinds of different things, and we’re seeing some early progress. I’d say we’re still pretty early on in getting this to be widely rolled out. I think we’re going to need many more than 33,000. And the number of people using them, I think it’s still pretty early in terms of there are more than 1 billion people using Messenger, so we need to get that rolled out pretty widely. So I’m not sure that I have an answer for you just yet on exactly when we’re going to move to the third phase.”

What we’re doing with AI

“I did not fully understand the first question, so I’m going to talk about our AI work overall. In general, what we want to do is try to understand the content that people are sharing and that’s out there for them to see as best as possible. So for example, that means being able to read and understand news articles or posts that people make or messages that a person might send to a business so we can help that business auto-reply to them and get information back to the person really quickly, or understand the content so we can better understand what might be interesting to a person and show it in News Feed. Similarly, aside from the conversational and linguistic understanding, there’s a whole thread of the work that we’re doing on visual understanding. So understanding photos, what’s in photos, what’s in videos, what people are doing.”

Sheryl K. Sandberg

David M. Wehner

Net income up 166%

“Total revenue grew 56% and exceeded $7 billion for the first time. And we delivered $2.4 billion in GAAP net income, up 166%. We saw healthy growth and engagement in our community as well as broad-based strength in our mobile ads business.”

As we slow ad load we’re gonna slow ad load as well

“So I do think as we look into 2017, we do expect that as you get to mid-2017, ad load will be a less significant factor contributing. We’ll continue to get benefits of being able to grow our revenue with advertiser demand and continuing to innovate there. But I do think that as we slow ad load growth, we’re going to have a slowing in revenue as well. So that’s our expectation, but obviously we’re going to continue to work hard to innovate in the ad product space.”