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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 9:26:43 PM
    He says strong engagement is due to utility of the service.
  • adam s 7/26/2012 9:27:01 PM
    if you exclude the share based compensation expense for the quarter, the numbers seem on target or even positive. seems hard to justify the after market pounding going on
  • charles.cooper 7/26/2012 9:27:02 PM
    Facebook by the numbers.
  • Paul Sloan 7/26/2012 9:27:09 PM
    That's true....@adam
  • Paul Sloan 7/26/2012 9:27:36 PM
    He says it's FB's goal to make sure all the people are real/ authentic
  • Paul Sloan 7/26/2012 9:27:56 PM
    Talking about stock based compensation, which was big.
  • Paul Sloan 7/26/2012 9:29:10 PM
    Says FB's business model should support fat margins but at "early stage of growth," investing in business is critical
  • Supers 7/26/2012 9:30:02 PM
    There's no way all accounts will always be real people as long as things like Zynga games and Spotify keep spamming news feeds and people want not to annoy their friends
  • charles.cooper 7/26/2012 9:30:23 PM
    Ebersman is talking about hiring and how important it is to Facebook. I heard the same thing when I was down at Facebook a few weeks ago. But - and this is no news - the competition for engineering talent is keen.
  • Paul Sloan 7/26/2012 9:30:26 PM
    He's going through the basic numbers. You can see them here: news.cnet.com
  • Paul Sloan 7/26/2012 9:30:40 PM
    Says FB will invest up to $1.6 B in capital expenditures this year.
  • Paul Sloan 7/26/2012 9:31:20 PM
    Ebersman is finishing up. The Q&A part will be key .
  • charles.cooper 7/26/2012 9:31:55 PM
    He's not seeing any issues with user engagement in the second half. Maybe Wall Street will read something into that? Stock's now at $24.33 in after-hours. Here's comes Q&A.
  • Paul Sloan 7/26/2012 9:32:11 PM
    Question is about Ad Exchange and wants details about Yahoo patent deal.
  • Paul Sloan 7/26/2012 9:32:47 PM
    Sheryl: She says the goal of Ad Exchange -- bidding -- is to show more relevant ads. Says it's too early for much info but she's encouraged by how interested customers are
  • Paul Sloan 7/26/2012 9:33:25 PM
    Sandberg: On Yahoo deal, says first part was cross licensing of all patents. Says she's pleased because it brought back to an important relationship.
  • Paul Sloan 7/26/2012 9:33:59 PM
    Question from Citi analyst: Anything more about engagement? Also, any change for how big you think the company needs to be.
  • charles.cooper 7/26/2012 9:34:05 PM
    Sandberg offers congrats to Marissa Mayer on her new gig at Yahoo.
  • Paul Sloan 7/26/2012 9:34:42 PM
    Zuck: Regarding the overall size of the company, we've always been smaller than others compared with the numbers we server in the world.
  • Paul Sloan 7/26/2012 9:35:05 PM
    Zuck: We believe that all these consumer products will become social over time. But we can't build all ourselves, so we built a platform.
  • 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
    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.
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