Why Facebook did not show signs of slowing down

According to foreign media reports, Facebook has no signs of slowing down. In the second quarter it recorded a revenue of 2.91 billion U.S. dollars, an increase of 61% over the same period of last year. Its net profit was up to 791 million U.S. dollars, up 138% from the same period last year. Both indicators exceeded Wall Street's expectations .

After the earnings announcement, Facebook CEO Mark Zuckerberg, COO Sheryl Sandberg and CFO David Wehner attended a earnings conference call to review corporate finance and Operating conditions, and answered the analyst questions.

At the meeting, Zuckerberg tried to reduce the market for WhatsApp, Instagram and other independent applications, said they still need years to establish a good business foundation and ecosystem.

The following is a conference call summary:

5:04 am

Zuckerberg said it is exciting that the company "still has a lot of room for growth." He pointed out that in the United States, people spent an average of 9 hours a day in digital media, spending less than an hour on Facebook. He thinks this is a growth opportunity.

5:12 am

Sandberg said Facebook has 1.5 million active advertisers and more than 30 million active small business pages.

5:19 am

Weiner argues that advertising prices more than doubled because they appear more in dynamic news, which is a valuable advertising space; ad impressions have dropped 25% because of user experience, Mobile Facebook The number of ads displayed in dynamic news is not as much on the desktop.

Conference call into the Q & A session:

About the network

Sandberg reiterated Facebook's goal of pushing high-relevance ads, saying the product is still in its infancy.

About mobile advertising revenue

Sandberg said excitedly that installing mobile app ads is only part of the drive to growth, with other factors including the power of advertisers, big and small, and mobile ad revenue not focused on a few baskets.

She also said that advertisers are beginning to find great ideas for marketers on Facebook, and that television is more than the only creative outlet.

For "Buy" button test

Sandberg said the "Buy" button was a small test in the United States. She clearly pointed out that Facebook is not to sell things, but just want to bring convenience to marketers.

Zuckerberg said Facebook will do some payment processing and other aspects of the work, but it will still see themselves as partners. "Our main business is advertising."

About WhatsApp and Instagram

Zuckerberg said applications like WhatsApp and Instagram will take years to build a solid business foundation and ecosystem.

For depth links

Zuckerberg said there is not much to be announced yet, and it is still in its infancy, with Facebook content indexing continuing for years.

He also talked about some scenarios where developers can have their apps interact with Facebook.

About mobile advertising

Facebook did not separately list the performance of the various advertising products, but the overall growth momentum is impressive. The mobile business is showing good growth, marketers get a good return on investment (ROI), so repeatedly invest in the Facebook platform advertising budget.

About advertising price

Analysts want to know how long the ad's price can grow. Currently, the shift of advertising to dynamic messaging has driven price increases. Weiner said there are other drivers: Facebook is revamping the right-column ads on the page to enhance their value.

About China

Sandberg said Chinese companies are using the Facebook platform to reach the global audience, Facebook wants to connect the world, including China.

About Introducing PayPal President David Marcus (David Marcus)

Why does Facebook let people engaged in payment to operate communications applications? Zuckerberg said in the long run there will be some overlap between Messenger messaging apps and payments. He also reiterated that there is still much to be done to build a business base and ecosystem.

WhatsApp user trends

Zuckerberg: "The deal has not been completed yet, and we have no news to announce."

Related to drive offline shopping

Sandberg pointed out that Facebook online advertising to prove that it is important to drive offline purchases, which is a major concern Facebook.

About video ads

Zuckerberg said that for the video ads, to ensure good quality is very important. His focus is on making sure people do not think it's advertising when they see a video ad. He also needs to ensure that video ads do not consume too much user data.

About privacy actions

Facebook anonymous login, the contents of the initial public offering of friends and other privacy features, analysts asked: This is Facebook's strategic change?

Zuckerberg responded that people misunderstood Facebook, the company focused on creating a private space for people, to provide people with an original group sharing without the function; Facebook will continue to work in this area, communications services are rapidly growing People have a need to share only with a small group of people. He also said that anonymous login will have a different user experience.

About Oculus

Zuckerberg said it is in line with Facebook's strategy, but it will take a long time to develop. He compares it to a mobile computing platform. His effect is that Oculus is likely to be the next mobile computing platform that Facebook wants to help bring about.

About searching

Zuckerberg said the second quarter, Facebook daily search volume exceeded 1 billion times; the platform to find a lot of content, the company is working hard to index it.

http://blogs.wsj.com/digits/2014/07/23/live-facebooks-2q-earnings-and-conference-call/

Translator: Le Bang

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