Facebook (FB) Q1 2017

Mark Elliot Zuckerberg – Facebook, Inc.

On augmented reality

“One of the examples I showed at F8 was around using object recognition and computer vision to be able to point your camera at something and then tap on it and get a card of information and maybe even a buy button. So there are lots of different ways that over time this kind of content is going to both augment existing real-world objects and eventually replace them, which I think is going to be an interesting opportunity. maybe not on augmented reality on the phone but on glasses eventually. When you have that, I think we’re going get to a point where things like TVs, you no longer need a physical TV. You’ll get a $1 app that you can watch it screen on.”

AI will take time

“Over time, the AI tools will get better. Right now there are certain things that AI can do in terms of understanding text and understanding what’s in a photo and what’s in a video. That will get better over time. That will take a period of years, though, to really reach the quality level that we want.”

Sheryl Kara Sandberg – Facebook, Inc.

The shift to mobile

“Mobile ad revenue was $6.7 billion, up 58% year over year, and was approximately 85% of total ad revenue….Our first priority is helping businesses leverage the power of mobile. More businesses around the world are shifting to marketing on mobile. Over 70 million businesses are now using Facebook Pages around the world on a monthly basis, and more and more of them are becoming advertisers. We also recently announced that over 5 million businesses are actively advertising on Facebook, including more than 1 million in emerging markets….People are increasingly recognizing that the small screen is big.  ”

The big question: Can people do without mobile? 

“we are definitely seeing people continue to advertise on TV and use us as a complement. So over time, we believe that the dollar shifts with eyeballs and we want to earn it from our clients and be the best dollar and the best minute they spend and help them measure across channels. I think increasingly, the question is not if you can do without TV, but it’s if you can do without mobile. And we’re working hard to help advertisers develop the video creative that really works for mobile because that really makes a really big difference.”

Leveraging internet to create sales

“We are pretty excited to have 1 million advertisers and 8 million Instagram business profiles on the platform. To share one example, an online store in Brazil called Loja Nama, they sell decorative items and accessories. Their business owner, Joanna [Cariello], took photos of her products on her phone and then created ads with our Shop Now button. She targeted young audiences in Brazil who are interested in fashion, decoration, movies, and architecture. And during the period of her campaign, Instagram accounted for 79% of her sales.”

 

Twitter (TWTR) Q1 2017

Anthony Noto – Chief Operating Officer

Politics driving up user growth

“Audience growth in Q1 was driven primarily by organic growth, reflecting some seasonal strength followed by product improvements and marketing. Contributions to growth from product improvements importantly have been growing steadily for the last four quarters…There also is some evidence that we benefited from our new and resurrected users following more news and political accounts in Q1, particularly in the U.S. That’s a really positive thing..”

They expect Improved ROI to drive up advertising revenues in the near term

“the first thing I think that’s really important to understand and something that we’ll continue to benefit and talk about over the next several quarters is just the four consecutive quarters of DAU (Daily Active Users) growth with an acceleration again this quarter to 14%. That’s on a year-over-year basis. …The current revenue trends that we’re reporting reflect budget decisions based on trends in audience and pricing of 6 months to 12 months ago when we were not seeing the significant acceleration in user growth or the more than 60% year-over-year decline in cost per engagement. The good news is we’ve been out aggressively telling the story of that improved ROI. Early feedback has been positive. In fact, we signed 32 additional upfront deals since our last earnings call. While these represent a small portion of our total expected revenue, we’re seeing momentum in the number of upfront commitments signed. That said, advertisers have long allocation processes that take 6 months to 12 months to turn around, so we have a lot of work left to do.”

Live streaming to younger audiences

“…we had 800 hours of live streaming programming in Q1, up from 600 hours in Q2, and again that’s across sports, e-sports, news, and entertainment…50% of our audience in live streaming is less than 25 years old and over 50% is international.”

Jack Dorsey – CEO

What people use Twitter for.

“..we’ve seen for ten years that people go to Twitter first to see what’s going on and to see what’s happening and what people think about what’s going on and what’s happening. We want to get to a place where we’re the first place they hear of something. Twitter is the first place they hear of something. And that means that we need to get really good at connecting all the dots and all the data that we have to make sure that we’re building something that’s really relevant so that when we notify someone, it’s something that is deeply impactful to them, is relevant, and is important. And they go into an experience where they can dig even deeper and see what’s really happening.”

 

 

Alibaba FY 2Q17 Earnings Call Notes

Alibaba Group Holding (BABA) Q2 2017 Results

Daniel Yong Zhang

Consumer behavior is evolving dramatically

“Consumer behavior is evolving dramatically as the population getting younger and more proactive in upgrading their lifestyles. At the same time, merchant increasing dramatically with latest technologies inspires them to embrace new ways to improve business efficiency and serve customers. We believe the convergence of these factors will bring about a significant disruption of the existing commercial landscape and emergence of a new retail model.”

Not just about growing online in isolation

“The most important opportunity on horizon is helping traditional business to upgrade into a new retail model and not continuing to grow online business in isolation. Online and offline will be a single seamless experience, not just in consumer interaction, but also in the entire business operation and execution. We want to improve efficiencies across the entire value chain of product design, manufacturing, distribution and the services.”

Joseph C. Tsai – Alibaba Group Holding Ltd.

We in a process with the SEC

I’ll address the second question. As you know, we’ve been in the process of – with the SEC, they’ve sent us a letter inquiring as to a number of issues. On this, we’ve been very transparent with you guys about what’s going on. We disclosed all the issues involved and the fact that we’re voluntarily cooperating with the SEC in their inquiry. We don’t think there’s any factual basis to the New York Post story. So on that score, when we have real news we will update everyone.