Facebook quarterly earnings conference call | CNET

Facebook quarterly earnings conference call

Join CNET for live coverage of Facebook's first earnings call since going public

  • Josh Lowensohn 7/26/2012 7:38:24 PM
  • Paul Sloan 7/26/2012 9:35:58 PM
    Zuck: we're growing by trying to find as many talented engineers as we can but for foreseeable future we will be way smaller than others.
  • charles.cooper 7/26/2012 9:36:51 PM
    Wells Fargo analyst asks re: mobile: Is it important to own the entire experience (including device)? or do you take a federated view of platform feeding into many apps.
  • Paul Sloan 7/26/2012 9:36:53 PM
    Zuck: FB is most used app on every mobile platform.
  • Paul Sloan 7/26/2012 9:37:21 PM
    zuck: we want not just to have apps that people use but be as deeply integrated as possible, where other apps can build on top of FB
  • Paul Sloan 7/26/2012 9:37:43 PM
    Zuck: that's why we're supporting Apple and working closely with them. He says building out our own phone wouldn't make much sense for us.
  • Paul Sloan 7/26/2012 9:38:37 PM
    Q: question is about click through rate and margin expansion?
  • Paul Sloan 7/26/2012 9:39:29 PM
    David: He's talking about importance of better social content to increase clicks. The early data is low volume.
  • Paul Sloan 7/26/2012 9:40:16 PM
    David: In terms of margins, says we are growing the business based on opportunities we see and want to invest in. Not trying to optimize for short-term margin target. Long term, so much scale that margins could improve
  • Paul Sloan 7/26/2012 9:40:32 PM
    Sandberg: points out that higher click-through rates lead to higher CPMs.
  • Tom 7/26/2012 9:40:38 PM
    Maybe by "hiring and how important it is to FB" Ebersman means employers checking potential new hires' profiles and news feeds
  • Paul Sloan 7/26/2012 9:41:16 PM
    Sandberg: focused on increasing percentage of ads that are social in nature.
  • charles.cooper 7/26/2012 9:41:51 PM
    Sandberg: Fewer than half of Facebook's ads are social..says they have higher engagement rates, higher ROI for advertisers.
  • Paul Sloan 7/26/2012 9:42:42 PM
    Q: given all the testing around products and monetization -- what else is looking promising? also, looks like daily users declined in europe..what are you doing about that?
  • Paul Sloan 7/26/2012 9:43:51 PM
    Sandberg: sponsored stories are showing good results and others with social. Says we' re optimistic around early testing with mobile. Mobile is inherently social. ...that's been very promising. Users engage with those ads.
  • Paul Sloan 7/26/2012 9:44:41 PM
    Ebersman: Says remains pleased with people who come back every day.
  • Paul Sloan 7/26/2012 9:45:45 PM
    Q: asking Mark for update on Instagram?
  • charles.cooper 7/26/2012 9:46:20 PM
    Question to Zuck about the Instagram deal and whether there are other acquisitions like that one on the horizon.
  • charles.cooper 7/26/2012 9:46:56 PM
    Zuck: The acquisition hasn't closed and so no integration has occurred.
  • charles.cooper 7/26/2012 9:47:46 PM
    On potential future acquisitions, said it was a question of pairing up parallel areas of interest.
  • Paul Sloan 7/26/2012 9:48:15 PM
    And that most acquisitions going forward -- like those in past -- are to acquire the talent.
  • Paul Sloan 7/26/2012 9:49:21 PM
    Q: From Goldman Sachs analyst. How do you gauge how often to show sponsored stories?
  • Paul Sloan 7/26/2012 9:50:21 PM
    Sandberg: in terms of rolling out, we're looking at social context to make sure they're really relevant. Also looking clearly at user reaction. That's easy to measure - we can see if they're clicking, sharing, liking.
  • Paul Sloan 7/26/2012 9:50:53 PM
    Sandberg: Also been careful to limit the number of sponsored stories and continue to be. haven't rolled out to all counties.
  • Paul Sloan 7/26/2012 9:51:22 PM
    Sandberg: local is huge. that's the holy grail of the Internet. Everything is about getting people into local. The problem is that local businesses aren't very tech savvy.
  • Paul Sloan 7/26/2012 9:51:53 PM
    Sandberg: Something like 40% have no web presence. But they are using Facebook, which gives us a huge advantage.
  • Paul Sloan 7/26/2012 9:52:36 PM
    Sandberg: We want them to use Pages, which is similar to Timeline. And 7 million are using on a monthly basis and many get upsold and become advertisers.
  • Paul Sloan 7/26/2012 9:53:32 PM
    Q: Outside of Payments and advertising, how are you thinking about video and commerce? What can FB become over longer period of time in terms of rev streams?
  • charles.cooper 7/26/2012 9:53:57 PM
    Zuck to Needham analyst: Basic approach is to build platform and other companies can build on top of that.
  • charles.cooper 7/26/2012 9:54:10 PM
    We will get some portion of the value from that, he says.
  • skp 7/26/2012 9:54:17 PM
    Instagram --> 1 b + for 10+ folks --> huge premium if acquired just for talent
  • Paul Sloan 7/26/2012 9:54:34 PM
    @skp Said In
    stagram was an exception.
  • Paul Sloan 7/26/2012 9:55:18 PM
    Zuck: over time, more things become social. and as they get built out, we'll build out the tools. "I don't have any more plans that I'm going to share with you about our product roadmap."
  • charles.cooper 7/26/2012 9:55:24 PM
    Facebook again below $24 in after-hours trading.
  • Paul Sloan 7/26/2012 9:55:56 PM
    Sandberg: She's giving a shout out to Fab.com, which is seeing huge growth via Facebook. Citing it as a social commerce company.
  • iRidiculous 7/26/2012 9:56:15 PM
    @skp no kidding... must be unique talent
  • Paul Sloan 7/26/2012 9:56:43 PM
    Q: Asks about the economics of the app center?
  • Paul Sloan 7/26/2012 9:57:35 PM
    Sandberg: Says the ad experience is complicated because we are a completely new kind of marketing. The right ad on TV or search is the wrong ad on Facebook.
  • charles.cooper 7/26/2012 9:57:47 PM
    Sandberg:
    We're not TV. We're not search. We're a new medium.
  • Paul Sloan 7/26/2012 9:57:54 PM
    Sandberg: Talks about the challenge of teaching social marketing.
  • charles.cooper 7/26/2012 9:58:20 PM
    Sounds like they have a big challenge "educating" businesses about the ins and outs of social marketing.
  • charles.cooper 7/26/2012 9:59:06 PM
    Sandberg: It took a long time for search and television to resonate with businesses. Says that
    Facebook is on a similar curve with social.
  • Paul Sloan 7/26/2012 9:59:29 PM
    Sandberg: Talking about App center. Says it too is about social discovery -- you're more likely to want an app that other recommend. Right now, she says, no paid apps.
  • charles.cooper 7/26/2012 9:59:37 PM
    I don't know about you but they're being awfully general.
  • charles.cooper 7/26/2012 9:59:57 PM
    CFO: Disappointed about how the stock is trading but we're still the same company we were before.
  • bob 7/26/2012 10:00:04 PM
    It took zero time at all for television to resonate with business.
  • Jeff 7/26/2012 10:00:09 PM
    Completely new type of marketing - banner ads and fake posts from friends that like some brand which they don't actively create? OK coolaid pass it 'round guys.
  • artcorvelet 7/26/2012 10:00:15 PM
    No specifics. This is one of the worst conference calls. I'm embarrassed for them.
  • bob 7/26/2012 10:00:30 PM
    It took no time at all for television to resonate with businesses. Soaps? Television was always driven by advertising. From day one.
  • Paul Sloan 7/26/2012 10:00:40 PM
    Q about info in the news feed that users didn't ask for -- how do you know what to do not to hurt user experience?
  • Paul Sloan 7/26/2012 10:01:37 PM
    Zuck: at any point, we have a lot of tests and measure everything in the system on News Feed. How much people share? User sentiment? Everything down the stream. We've seen we can put in good sponsored content and not have it degrade the content -- and that's what we're trying to do.
  • charles.cooper 7/26/2012 10:02:09 PM
    Zuck was asked Facebook planned maintain the user experience without going "over the edge." He didn't really answer the question in detail, saying that FB was rolling out sponsored stories very slowly.
  • Paul Sloan 7/26/2012 10:02:27 PM
    Ebersman: revenue growth is really hard to predict - which is the case with News Feed.
  • Matty B 7/26/2012 10:02:44 PM
    @artcorvelet @Supers - My recap - What about x? Well that's social, and we're social, did I say social yet?
  • artcorvelet 7/26/2012 10:03:16 PM
    User experience? Has anyone else ever listened to a call that had no numbers in either questions or answers?
  • charles.cooper 7/26/2012 10:04:23 PM
    A question I wished someone had posed either to Zuckerberg or Sandberg: What if businesses don't want everything that they do to be social? What if they just don't care?
  • Paul Sloan 7/26/2012 10:04:54 PM
    Wrapping up. Thanks to hall for hanging with us.
  • bob 7/26/2012 10:04:58 PM
    The word "social" is not bullet-proof. It is not a panacea for everything. It is not actually desirable (digital social) in all occasions. The way these guys use the term is like a shield. Our social time (real world) is often time away from business and advertising (why do we go to parks?).
  • DonaldMilf 7/26/2012 10:05:29 PM
    All I hear is how they plan to make Facebook more about advertising. Sounds like they're going down the same road as America Online and Digg, where making a better product took a back seat to fitting more adds into the content, and the audience turned their attention elsewhere overnight.
  • Paul Sloan 7/26/2012 10:14:09 PM
    Thanks again.
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