Good afternoon. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the Facebook third quarter 2018 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. This call will be recorded. Thank you very much. Ms. Deborah Crawford, Facebook's Vice President of Investor Relations, you may begin.

Thank you. Good afternoon, and welcome to Facebook's third quarter 2018 earnings conference call. Joining me today to discuss our results are Mark Zuckerberg, CEO; Sheryl Sandberg, COO; and Dave Wehner, CFO. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in today's press release and in our Quarterly Report on Form 10-Q filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The press release and an accompanying investor presentation are available on our website at investor.fb.com. And now, I'd like to turn the call over to Mark.

Thanks, Deborah, and thank you all for joining us today. We had a solid quarter, and our community and business continue to grow quickly. 2.3 billion people now use Facebook every month, and 1.5 billion every day. Revenue grew 33% year over year to $13.7 billion. Last quarter, for the first time, we also shared the number of people who use at least one of our apps each month. We believe this is a better way to measure our community over time because so many people use more than one of our apps. There are now more than 2.6 billion people using Facebook, WhatsApp, Instagram or Messenger each month, up from around 2.5 billion last quarter. But now, on average, more than 2 billion people use at least one of our services every day. Today, I want to talk about our strategy overall as we navigate challenges and opportunities on several fronts. For one, we're seeing the way people connect shifting to private messaging and stories. We have great products here that people love, but it will take some time for our business to catch up to our community growth. Two, we're seeing video grow dramatically across the ecosystem. And while Watch is now growing very quickly, we're well behind YouTube and still working to make this a unique people-centric experience. Three, we continue to face increased safety and security threats. We've significantly improved our systems here, but we have more to do. So let's start with messaging and stories. Public sharing will always be very important, but people increasingly want to share privately too, and that includes both just smaller audiences with messaging and ephemerally with stories. People feel more comfortable being themselves when they know their content will only be seen by a smaller group and when their…

Hi, everyone. It was another good quarter for our business, with ad revenue up 33% year over year. Our growth was broad-based across regions, marketer segments and verticals. Mobile ad revenue grew 40% to $12.5 billion, making up approximately 92% of our total ad revenue. Since Facebook launched its first ad products, we've been in the business of growing our clients' businesses, from the largest brands in the world, to the entrepreneur in her living room. Over 90 million businesses rely on Facebook pages to reach potential customers for free. In a global survey, half of small businesses with a presence on Facebook said that they are hiring because of growth they're able to achieve through our platform. More than 6 million advertisers are active across Facebook, Instagram and our other services. With more than 2 billion people using at least one of our services every day, we're the best place for these advertisers to show people ads that work. We know that our continued growth depends upon maintaining the trust of the people who use our services and earning our clients' business each and every day in a very competitive environment. Every time I meet with clients, I tell them that we want to be the best minute and the best dollar, euro or peso they spend. As we look ahead to 2019 and beyond, we're focused on continuing to build our clients' businesses and ours by helping advertisers reach consumers where they are and making ads better. First, helping advertisers connect with people where they are. Consumers often adopt new technologies before businesses do. Our competitive advantage is helping advertisers close that gap. We've done this before on desktop, mobile and News Feed. In the early days, we helped businesses deliver personalized marketing at scale on desktop. With…

Thanks, Sheryl, and good afternoon, everyone. Let's start with our community metrics. Daily active users on Facebook reached 1.49 billion, up 9% compared to last year, led by growth in India, Indonesia and the Philippines. This number represents approximately 66% of the 2.27 billion monthly active users in Q3. MAUs were up 199 million or 10% compared to last year. Note that our Q3 2018 community metrics reflect an update to our calculation methodology. This resulted in the removal of the small percentage of accounts or approximately 15 million DAU and 9 million MAU worldwide. This change will modestly impact our year-over-year user growth rates until we lap it next year. Further details are included in the earnings slides on our IR website. Turning now to the financials, all comparisons are on a year-over-year basis, unless otherwise noted. Q3 revenue was $13.7 billion, up 33% or 34% on a constant currency basis. Had foreign exchange rates remained constant compared to last year, Q3 total revenue would have been $159 million higher. Q3 total ad revenue was $13.5 billion, up 33% or 35% on a constant currency basis. In terms of regional ad growth, Asia Pacific was strongest at 38%, followed by Europe and North America at 34% and 33%, respectively. Rest of world ad growth trailed at 26% due to both currency weakness and economic challenges in Latin America. Mobile ad revenue was $12.5 billion, up 40%, and represented approximately 92% of total ad revenue. In Q3, the average price per ad increased 7% and the number of ad impressions served across our services increased 25%, driven primarily by feed ads on Instagram and Facebook. Our impression growth in Q3 came primarily from product surfaces and geographies that monetize at relatively lower rates. For example, ads in Instagram Stories contributed…

We will now open the lines for a question-and-answer session. Your first question comes from the line of Doug Anmuth from JPMorgan.

Thanks for taking the questions. I just wanted to ask two. First for Mark, I was just hoping you could talk a little bit more about some of the challenges that you see for Stories within Facebook relative to their stronger adoption in Instagram and for WhatsApp Status. And then also, what if Stories don't gain traction on Facebook over time here? How do you think about that for the platform as well? And then, secondly, for Dave, just on OpEx for 2019, the 40% to 50% growth, should we think about that as still the same buckets of spend that you've been talking about over the last year or so, and does their prioritization change at all for next year? Thanks.

Sure, so I can take the first part. I think a lot of this is really basic. When I say that we got started slower on Facebook, that starts with literally rolling out on Facebook a number of months after we had rolled out on either WhatsApp or Instagram. And then the initial version of what we shipped I just think wasn't as high-quality as where it needed to be. It wasn't as fast. There were bugs. And we've been working on dialing that in. I'm less worried at this point about it not working because we're starting to see it really take off. Certainly, with different groups of people, it's stronger on Instagram or WhatsApp or Facebook, but across all three at this point, it's growing. And as I said in my opening remarks, I think we're going to be a lot better positioned here in Facebook in the next year.

Hey, Doug. It's Dave. Just on the 2019 expense growth guide, a lot of that is consistent with what we've been talking about as our big investment areas. If you look at just head count growth in the past year, it's up 45%. So that compensation expense base that we're bringing into 2019 is really factoring into the overall growth guidance for the total expense guide, so that's a big factor there. In addition, we've been investing significantly in CapEx, and those investments are starting to flow through the P&L in terms of depreciation. And then I'd point to significant investment areas like AR/VR efforts, the content ecosystem around video, and the ongoing investment in safety and security.

Your next question comes from the line of Eric Sheridan from UBS.

Thank you so much, maybe one for Sheryl. When you think about some of the friction points you're trying to solve for on either the creative side or the selling-through side with respect to video and Stories, maybe you could call out some of the conversations you're having with advertisers and how you see some of the moves Facebook can make to solve for those friction points looking out to 2019 and beyond. Thanks so much.

Thanks for the question. We have a very large and growing advertiser base, and that gives us we think a really strong position to get people into new formats. When you do that, a couple of things really matter. One is that the format of an ad really has to match the format of the consumer experience. So the right ad in News Feed is different than the right ad in an Instagram or a Facebook story is different than the right ad in Watch, which would be video-only. And so making these new formats of ads is actually hard for people and expensive. And so we're working hard on tools to make the formats easier, and I talked about one of those examples before. What's nice is that the same targeting, the same measurement systems really work. Because we are looking to show relevant ads to the right person at the right time, the systems we have that understand in a privacy-protected way what ads people are likely to be more interested in, those work, whether you're in Stories or Watch or Instagram Feed or News Feed. And the other thing is that our systems for measuring the effectiveness of ads, which help advertisers get all the way through to their ROI, which help them bid in our system, also work. And so we take the advertiser base, we take the systems we have for targeting and measuring ads, and then we help advertisers move to the new format. And I think that's the process we're on.

Your next question comes from the line of Brian Nowak from Morgan Stanley. Brian Nowak - Morgan Stanley & Co. LLC: Thanks for taking my questions. I have two. The first one, last quarter, Dave, you made some comments about a multiyear margin outlook, and I appreciate the comment this quarter about engagement in the feed, et cetera. I was just curious when you thought about that margin outlook, how do you think about the one or two key drivers of News Feed monetization over the next few years, given you expect to be flat overall engagement? And then secondly on Watch, I'm wondering, Mark. Could you just talk about the key one to two steps you need to sort of clear in order to drive higher Watch and video engagement to sort of catch up with some of the competitors? Thanks.

Hey, Brian. It's Dave. In terms of what we're seeing as opportunities, I mean, we continue to see good growth opportunities for revenue across both Facebook and Instagram, including both feed and Stories. I think in terms of impression growth, you're going to have more opportunities in Stories, probably more opportunity on Instagram, but good revenue growth opportunities in both places. So that's obviously what we're looking for when we look forward. Beyond that, I don't have much to update on in terms of any more specific revenue outlook.

And to the video questions, the biggest thing that we need to do is make sure that the video experience is people-centric and that we're helping creators build community and we're helping people interact with each other. Our journey with video has been a little bit funny, in that people really want to watch a lot of video. And to a large degree, we've had to limit its growth and we had to do the things so we can stop limiting it. The things that have caused us to limit it are, on the one hand, when we see passive consumption of video displacing social interactions, that's not something that we've wanted because we feel like that's what Facebook is. We build social products that help people interact. There are lots of places in the world that you can go to consume content, but we're the Internet service that people use to help connect with other people and we're not going to let passive consumption get in the way of that. So we needed to figure out a way so that video can grow, but people can also keep on interacting doing what they tell us that they uniquely want from Facebook. And now, I think we're starting to work through what the formula is going to be so we can take some of those rate limits off and let video grow at the rate it wants to. And I think that's a very exciting opportunity ahead, and that's one of the reasons that I'm very optimistic about the Watch growth that we've started to see recently up about 3x in the last few months in the U.S. alone.

Your next question comes from the line of Justin Post from Bank of America Merrill Lynch.

Thank you. Mark, first, on Facebook engagement. There are some questions about usage. And when you look at the engagement, do you see it stable? I think you mentioned that earlier. And does that include some of the changes you've made on video earlier in the year? And then, secondly, some usage may be moving over to Instagram. When you look at Facebook plus Instagram, how do you feel about how that usage is trending? Thank you.

Sure. So I mean across the whole family of apps, I mean all of this engagement is growing quickly and we're very happy with how we're enabling people to share. As I said, the vast majority or the majority of the growth that we're seeing in sharing is coming from private messaging and story sharing. So that's kind of the big thing. The basic story that we've seen within the Facebook app is, over the last few years, the amount of time that people were spending in the app was increasing primarily because people were consuming more public content, like passive video consumption and news. But it was coming at the expense of people interacting with each other as much. So interactions were down. And we got a lot of feedback from people saying that's not what they wanted. We don't think that that's what we're uniquely here to do. It's not the mission of the company. So we felt like that was not sustainable. So we've made a lot of shift this year, which I've talked a lot about on a bunch of these calls, to encourage more meaningful social interactions instead. And we have seen that those changes have improved the trajectory of how people are interacting. Now, at the same time that we have intentionally reduced time spent on certain things, like lower-quality viral videos, some news, some passive content, but that's what I was talking about before when I said that now the trend – and you can kind of look at it in developed markets and developing. In developed markets, it is stable and we feel like we're pretty close to saturation in a lot of countries, like the U.S. And in developing countries, where a lot of people are still getting on the Internet, it continues to grow at a fast rate. And we think that there's a lot more connecting in community that people want there. So that's kind of what we're seeing overall. Across the whole family, I would say it's very positive. On Facebook overall, I feel like we have a handle on what the drivers of this are and we're kind of driving it to be what people tell us they want and what we think is going to be sustainable over time. That's the picture that we have.

Your next question comes from the line of Ross Sandler from Barclays.

Great. Two questions. Dave, you mentioned 4Q revenue is going to have a mid to high-single digit deceleration. That's a tad better than what you stated 90 days ago. So just I know it's a small change, but I think folks on the line are looking for anything incremental in terms of what you're seeing. Has anything improved? And then, any initial read on what kind of deceleration we can expect to see in 2019, if at all, as you start turning on the ads on WhatsApp? And then, one for Sheryl. The shopping experience on Instagram, how do you compare, I guess, just the overall commercial intent on Instagram compared to Facebook? And what do you think that says about the long-term monetization potential for Instagram versus Facebook?

All right. Ross, I'll start off on that. I think the outlook that we're giving for Q4 deceleration is broadly consistent with the outlook that I gave last quarter with the benefit of a little bit more visibility. I'd just reiterate the points that I'd made in the earnings script around what's driving that deceleration. And as far as to how that plays into 2019, we're not providing a specific revenue outlook for 2019. We continue to see good growth opportunities across the platform on both Facebook and Instagram and feed and Stories. Those are going to be the drivers. I would characterize the launch of Status apps on WhatsApp as being a much smaller thing than a driver of 2019 revenue growth, and it's going to be more about Instagram and Facebook. The same factors that I discussed impacting Q4 growth will likely continue to play out to some extent in 2019, but we've got a lot of good growth opportunities for next year.

When you look at the Instagram Shopping experience, we're seeing some really nice growth. We have 90 million people tap to reveal product tags and posts every month to learn more about them, and we're putting real investments behind this. In Q3, we rolled out Shopping in Stories globally and began testing the Shopping Channel in Explore. And so, we think the opportunities are big. As you think about commercial intent in Facebook versus Instagram, there's so much activity on both. We think there's a lot of opportunity for people to have commercial intent, if not have it when they start, but develop it because they see things they're interested in, in both. Instagram can be more interest-based in some places than Facebook. So there are places in Instagram like Fashion or like Shopping that have very high signal, and that gives us I think a very strong opportunity there.

Your next question comes from the line of Lloyd Walmsley from Deutsche Bank.

Thank you. Two questions, if I can. First, just, Mark, your comments in prepared remarks on Stories having potential to be a bigger medium than News Feed suggests that the engagement is a net positive in terms of time spent or sessions per user. Is that the right way to interpret that as you see people engage in this they actually spend more time overall? And then, second question for Dave. Last quarter, you guided to kind of long-term operating margins in the mid-30s range. The guidance on OpEx for next year kind of implies we may already be there. Is that the right interpretation and should we expect it to be kind of stable beyond that based on some of the comments from Mark about recognizing that revenue and costs should be matched over the long-term? Any help you could give there would be great.

So on Stories, I don't know if we've given any metrics on time spent or anything on that side. But what I can say is that all of the trends that we've seen suggests that in the not too distant future people will be sharing more into Stories than they will into feeds, and that the whole market across all of the Stories type of products will be bigger in a market where people are sharing more moments from their days into Stories-type products than into feed-type products. And this happened very quickly, right? I mean this whole trend is much newer than the trend with News Feed and feeds overall and it continues to grow incredibly quickly. So we just see that there is a lot of upside there. Now, on the flip side, I try to be very careful in my remarks to be clear that this is one of those situations where the community growth that we're seeing is outpacing the progress that we've made so far on developing the ads in that space. And I think we'll get there over time, where the performance for Stories ads will converge with what we have seen in feed. And I think that the opportunity will be bigger because there will be more in Stories – or more Stories overall than in feed. But I can't tell you just yet what that timeframe is going to look like, but I think we're well-positioned over the long-term because we're leading in Stories in basically every country.

And, Lloyd, on the margin question, as I mentioned, 2019 will be a big investment year. So I would expect us to have the biggest change in our margin structure to happen in 2019 and for it to moderate from there. It's hard to be too prescriptive about 2020 and beyond, but I think the biggest change will be 2019.

Your next question comes from the line of Brent Thill from Jefferies.

Thanks. Just on Europe, there's been a more pronounced deceleration. Just curious in terms of how you think about the stabilization there going forward in your model and maybe a little more color on the pricing.

Yeah. Hey, Brent. It's Dave. I think, I guess, if you're talking about DAU and MAU, Europe is stable on that front in terms of Facebook overall. The accounting methodology change did affect how Europe sequential growth rate came in, but really stable if you kind of take that aside. And we had some impact from GDPR over the last two quarters. So I think, from that perspective, it is broadly stable for Facebook there. European growth rate I think was healthy from a revenue point of view. So I think we're still seeing good growth in Europe on the revenue front, and a lot of the similar dynamics playing out in Europe as in the rest of the world where you see good impression growth opportunity, especially in areas like Instagram and Stories contributing to overall ability to drive revenue growth.

Your next question comes from the line of Mark May from Citi.

Thanks for taking my questions. You seem confident that Stories will ultimately be a more effective canvas both for users and businesses and maybe even more so than the feed, but you also talked the transitional challenges. What specifically are those challenges? And since Instagram is further along with Stories, are there any things you're seeing with Instagram Stories monetization that gives you line of sight to reaching monetization parity, not only at Instagram, but also at core Facebook eventually? And then maybe just a second one. In addition to Stories, Mark also discussed how private messaging is also a growth use case. In private messaging, the company has, understandably so, been cautious on the monetization side. So just curious if you could discuss how optimistic you are about building a meaningful business around private messaging.

I can take those. When you think about the transition or people using feed versus Stories, there are a couple of things that are different. One is just the format. And again, we have a lot of experience at this. People had display ads or search ads before they really did Facebook ads, if you look back a decade. And teaching people here is what a Facebook ad looks like was a new format people had to understand. Then, as we moved into more photos with Instagram, more videos, a video ad on Facebook or Instagram is a very different thing if they perform well. They need to be natively social than a video ad that runs on TV. So Stories is a new format. It has multiple pictures, multiple screens, words and phrases intermixed in a different way. And so again, that's a new muscle for advertisers. I think we're getting people up the curve well this time. We've learned that we can't just rely on teaching our clients and teaching the ad agencies to do it, but helping them do that. And so some of the tools we've rolled out that I talked about where we can take your Facebook pictures and your posts and make it a story, that makes that process faster. I think when you think about the long-term monetization opportunities, it's really going to depend upon the time people spend. The amount of ads we would feel comfortable inserting into a consumer experience really depends upon how many different things you go through. So if you spend more time in Stories, they'll be need to be more engaging because there will be fewer ads in there. Now that may be possible because there's high, high, high engagement in Stories. So we're going to have…

And, Mark, this is Dave. I just wanted to add in. I think you asked about line of sight on monetization parity on Stories versus feed. It's obviously hard to say that because they're both dynamic, they're auctions, there's a lot going on. But I would say that at least in the near term, the impression growth opportunity is significant on Stories. Pricing will take time. So as we bring more formats to Stories and bring more advertisers to Stories, we can build up that demand and balance that out with supply. But I think in terms of it converging on feed from any pricing perspective, that's a journey that's going to take years, not quarters. So it's going to take time.

Your next question comes from the line of Anthony DiClemente from Evercore.

Thank you very much for taking my question. Just really one for Mark, which is, I don't think anyone has asked much about the security investments that Facebook is making. And when I talk to investors, people are curious whether it's one-off or recurring. And so as you think about 2019, the magnitude of the resources that the company plans to deploy to protect privacy, to protect security, it sounds like you're in or will be in, hopefully, a better position to ward off bad actors than you were prior to the 2016 election. But I just wonder. Do you look at this as an endless arms race, or is there some point in this investment where you might be able to get some better efficiencies on those investments, also relative to others in the industry who are making investments that don't seem quite as sizable as Facebook's? Thanks.

This is a really important question. I do think that we are up against sophisticated adversaries who will continue to evolve. So there is a large element of this, which is an arms race. And when you're talking about security issues and some of the safety and content issues, these are not problems that we fix. They're problems that you manage over time and try to reduce and prevent issues from coming up, but there's no silver bullet where you do the thing and then you're done. That said, I do think that we were quite behind where we needed to be a couple of years ago. We started a roadmap, which we said was going to be about a three-year roadmap. I think that we have some confidence in that timeframe, which takes us through the end of about 2019, to get our systems to the level that we generally think that they should be at, where we're building AI systems that can flag content that might be problematic to a much larger security and review team that can manage the larger volume of stuff that our tools are flagging to them. We're judging our success by, go through all of the categories of harmful content and behavior, whether it's terrorism, or self-harm, or hate speech, or just any different kind of thing that you'd be worried about. We're judging our success by how proactive can we get, so what percent of the stuff that we're taking down are we identifying before other people identify it for us. We've started issuing transparency reports so we can be held publicly accountable on this. What we see internally is that generally every week and every quarter that goes by, we're getting better and better at this. But I anticipate that it will be about the end of next year when we feel like we're as dialed in as we would generally all like us to be. And even at that point, we're not going to be perfect because more than 2 billion people are communicating on the service. There are going to be things that our systems miss, no matter how well-tuned we are. But I think we're making progress. We've made a lot of progress in the last couple of years on content overall. Elections are a special case, an extremely important special case of the content and safety issues and security issues that we face. But across all of the different types of content issues of people trying to spread hate or incite violence. We are making progress, and I feel good about the progress that we're making. And I think we will continue investing more. But I do think that to some degree the last few years and next year are probably going to be the biggest growth in the investment in the security efforts that we'll see.

Your next question comes from the line of Heather Bellini from Goldman Sachs. Heather Bellini - Goldman Sachs & Co. LLC: Great. Thank you. I just had two questions and I guess maybe you just touched on some of this, Mark. But the CapEx growth that you guys gave for next year, how far ahead should we think about you guys building out capacity? And can you help us think about the ongoing trend, in particular in light of your comments that you just made about how you'll feel about being more dialed in at the end of 2019? But how do we think about kind of that continued growth and CapEx number? And is there anything there that's a one-time item? And I guess the other question would just be related to Stories. And I guess, I'm just wondering, I know it's early days in terms of advertisers putting ad units in there at this point. But given that you've got the technology that converts to creative and kind of help people with that process of how to do a good Stories ad, how effective do you think that's been in terms of helping to drive their adoption of this ad unit thus far?

Heather, I'll take the first question regarding CapEx. So, yeah, we are investing ahead of user growth, given the long lead time in deploying data centers and network capacity. So we are building some capacity ahead of our immediate needs. So that is playing into it. But we're also making investments to support the core growth of the business. There's a lot of compute that goes behind, things like feed ranking and ads ranking. We think there is good ROI to putting more servers behind things like choosing the right ad for the right impression opportunity that we have. So we are putting more compute behind that. And then, I'd also make the comment that a lot of our growth is coming from markets in Asia, our top growth countries were India, Indonesia and the Philippines. So we're building capacity to serve that Asian peak and those users are at a lower ARPU. So that impacts the overall capital intensity. So we're continuing to invest and we're seeing increased CapEx in 2019, albeit at a much slower growth rate than we had in 2018.

I'll talk about Stories and I'll share a fun and, I think, important example. We know that when people are using more of the opportunities to reach consumers, their returns often go up. So the fun example is the Furbo Dog Camera. They're a Taiwanese company. They built this camera where you can see/talk and you can see and talk and toss dog treats to your dog when you're not at home. They ran a video ad campaign across Facebook and Instagram Stories and they targeted people with dog-related interests and used Custom Audiences to exclude people who had already purchased their product. By running across Facebook Stories and Instagram Stories, they drove 20% more leads than our other digital campaigns. So anecdotally, with our early, early adopters, we can see that we believe the increased opportunities here really work, and we have other examples like this. In terms of how early it is for adoption, it's super early. We just rolled out the ability to do this in August, and we have to drive awareness and drive people into trying it. And even when we make it super easy for people to get their ads into the right format, from the smallest mom-and-pop to the largest brands, people want to understand the creative of their ad and it needs to be in a format they feel comfortable. So as more people use Stories, we think they will increasingly feel comfortable in Stories. But we have a long road ahead of us even with tools that make it easy to drive awareness and adoption. We think once we do, the returns will be good.

Operator, we are going to take one last question.

Your last question comes from the line of Ralph Schackart from William Blair. Ralph Edward Schackart - William Blair & Co. LLC: Good afternoon. Maybe switching gears to feed, you talked about it being a major growth driver and a lot of opportunities for improvement. Can you maybe share some perspective on what those opportunities look like from both a user, as well as an advertiser? And then also, maybe just more longer-term, how can feed continue to be a strong growth driver? Thanks.

I can take that. When you think about feed, what people are doing is sharing. They're sharing in Instagram and Facebook. And that means there's, in many ways, almost limitless opportunity for consumers to do more. I think we've made some strong changes on Facebook in terms of meaningful social interactions, and I think the history of our ability to develop and iterate on consumer products shows that we can help people as they evolve, share the things they want to share, and have a very meaningful and important experience in feed as they're sharing. Feed is fundamentally about information being pushed to a consumer and us helping figure out what is most interesting and most engaging and I think, in many ways, positive for people. And I think the product teams, led by Mark, have done a great job of that over time and you're seeing the continued investment there. Along with that, goes the advertising opportunities. As there are more Stories and feed, as more people are engaged in Facebook and increasingly in Instagram, that gives us more opportunities just on the supply side of ads. On the demand side, all of the things we do to get more advertisers active in our system, means we'll have more ads to choose from, to make those ads more relevant, to measure the ROI of those ads so that people can then iterate and, again, make those more relevant. I think we've made real improvements there, but I think there's a lot more we can do. And one of the ways I talk to people about it is just ask what percentage of the ads do you see in your feed are as good as the very best posts you see from friends. And I think most people will honestly say that certainly compared to a few years ago, those ads are much more relevant to them, but not all of them. And you can see in that example, even in your own feed, the opportunities we have to improve, finding the right ad and giving it to the right person at the right time, which drives businesses all around the world and drives our business as well.

Great. Thank you for joining us today. We appreciate your time. And we look forward to speaking with you again.

Ladies and gentlemen, this concludes today's conference call. Thank you for joining us. You may now disconnect your lines.