Facebook, Inc. (NASDAQ:FB) Q3 2020 Earnings Conference Call - Final Transcript

Oct 29, 2020 • 06:00 pm ET

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Facebook, Inc. (NASDAQ:FB) Q3 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

We will now open the lines for a question-and-answer session. [Operator Instructions] Your first question comes from the line of Brian Nowak from Morgan Stanley.

Analyst
Brian Nowak

Thanks for taking my question. I have two; one for Mark, one for Dave. Mark, there's a lot of different types of consumer behavior on the platform for messaging, posting videos, stories, shopping, etc. I'd be curious, as you sort of look at the way in which people are using the products now versus the start of the year pre-COVID, what's changed the most that surprised you and how does that sort of impact your product priorities as you continue to make sure you're delivering value for your advertisers over the next couple of years?

Then Dave, I wanted to ask one about the initial 2021 OpEx guide and you mentioned sort of R&D and technical talent. Are there any specific projects or initiatives where you sort of look at and you say these areas really need to invest materially harder next year than you may have this year? Thanks.

Executive
Mark Zuckerberg

Sure. Thanks for the question. In terms of what behaviors we really saw with COVID, it was an increase in -- well, first of all, there was an increase in almost everything across the board, which I think was somewhat temporary and is now returning to baseline levels of growth, which is partially what we're seeing. But in terms of some of the more permanent trends, I think more people are doing kind of synchronous forms of connection, so voice calling and video calling I think we're seeing continue to be elevated in a lot of areas. We're seeing a stronger need for community. That's been a theme that we've seen for a while, but I think especially with COVID and people feeling a little more isolated, that has grown, the need to do that online. So we're really going to double down and invest in that area to help even more than we are today, building out the infrastructure for communities as a foundation going forward. People have more time, they want entertainment. So we're seeing video and gaming and things like that grow as well and that seems to have been sustained. That's on top of all the commerce trends where I don't think we know exactly which way this will turn as David and Sheryl both said whether this is a sort of a one-time shift towards a dramatic increase in the amount of commerce to tapping online versus a continued trend that we will see, but certainly we haven't seen any decline or return to baseline off of the quite elevated levels of online commerce behavior that we see both from consumers and small businesses.

Executive
Dave Wehner

Hey, Brian. I'll take that second question. As Mark outlined in his prepared remarks, we're making significant investments in hiring across a wide range of new products. I'd probably talk about big investments that we're making in our longer term AR-VR work through Facebook Reality Labs, as