Facebook on Conference Call- Stock hits after hour highs after tightening expense costs to lower end of guidance
Zuckerberg addresses the use of AI to improve news driven feeds. growth continues to be broad based across regions, marketer segments, and verticals;
In Q2 the average price per ad increased 24% and the number of ad impressions increased 19%.
Primarily driven by mobile fee to add on Facebook and Instagram. Growth engagement and ad demand remain healthy.
Desktop ad growths will slow in 2H17.
Expect that our strategic focus on driving engagement with mobile video may slow advertising impression growth given the relatively fewer ad impressions with video relative to News Feeds. Early efforts in Messenger monetization not offsettign slow downs
Continue to expect revenue growth rate to decline moving forwar.
Tightening FY17 Expense Guidance to 40-45% y/y from 40-50%
Expect to accelerate headcount growth rate in 2H.
Video investment will contribute to expense growth.
CapEx will be at the lower end of prior range of $7.0-7.5 bln.
Anticipate more data center building in 2H.
Tax Rates in 2H17 will be similar to Q2 (13%)