Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Mark, you used the analogy of other investment cycles you've been through around products like Stories and Reels. How should investors think about the length and depth of this investment cycle with respect to AI and Reality Labs?
A: Mark Elliot Zuckerberg - Meta Platforms, Inc. - Founder, Chairman & CEO: The investment cycle for AI and Reality Labs could span several years, similar to past cycles with Stories and Reels. Initially, the focus will be on scaling the products without immediate monetization. Revenue opportunities are expected to materialize once these products achieve significant scale.
Q: Can you discuss the recommendation engine improvements and further opportunities to increase the relevance of the models?
A: Susan J. S. Li - Meta Platforms, Inc. - CFO: Meta is developing a new model architecture to power multiple recommendation products, which has already shown performance gains in Facebook Reels. This model architecture is expected to unlock increasingly relevant video recommendations and may be extended to other recommendation products.
Q: How are you addressing the adoption of AI tools for advertisers and what are the main gating factors?
A: Susan J. S. Li - Meta Platforms, Inc. - CFO: Meta is integrating generative AI ad creative features across its platforms, seeing significant adoption, particularly among small businesses. The company is also testing AI for business messaging, starting with shopping use cases on Messenger and WhatsApp, which has shown promising feedback.
Q: With the upcoming ban of TikTok, how do you think this will impact the U.S. social media landscape?
A: Susan J. S. Li - Meta Platforms, Inc. - CFO: It's too early to assess the impact of TikTok's ban on Meta's business or the broader U.S. social media landscape.
Q: Can you talk about the potential for Meta AI in search advertising or as a premium subscription service?
A: Mark Elliot Zuckerberg - Meta Platforms, Inc. - Founder, Chairman & CEO: Meta AI is expected to differ significantly from traditional search advertising. Potential monetization strategies may include ads, paid content within Meta AI interactions, and premium features for larger models or additional compute.
Q: How do you envision the business model evolving for AI tools for businesses and creators?
A: Mark Elliot Zuckerberg - Meta Platforms, Inc. - Founder, Chairman & CEO: AI tools are expected to significantly reduce costs for businesses and creators engaging with customers through messaging, potentially leading to new monetization opportunities as these tools become more advanced and capable of handling complex tasks and multiturn interactions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
