"We aligned in December 2025 with the European Commission on further changes to our consent model for personalized ads in Europe. So, in the coming days, users in Europe will see the changes to the less personalized ads user flow. We continue to think that our aligned solution goes far above and beyond what’s required by the DMA, and our appeal of the Commission’s decision will continue in the courts. And with this said, we can’t rule out that regulatory authorities or courts could seek further modifications to our less personalized ads offering. So, if that were to be the case, it’s possible that those changes could result in a materially worse user experience in the European Economic Area in Switzerland."
CFO · Susan Li
"We don’t manage to a target margin. We believe that we are in a very fortunate position as a business to both have very strong revenue growth and just healthy business overall coming into 2026, seeing strong revenue growth. And also, fortunate to have a lot of very compelling opportunities to both build what we believe is going to be transformative technology, but also user products and experiences that we believe over the long run will be not only very cool technological experiences, but also good business opportunities. So, we’re reinvesting a lot of the revenue into these opportunities now. Again, I think I mentioned this on the call, but they’re primarily in the form of either AI infrastructure or talent."
CFO · Susan Li
"Having said that, we have come into 2026 to date against a very healthy macro backdrop. I alluded to this on the first call, talking about how strong the holiday marketing season was. And we’ve seen the continued macro strength continue into the first weeks of 2026. We’ve also seen good results from the set of investments that we made in 2025, specifically to fund work to drive ad performance improvements and organic engagement initiatives."
CFO · Susan Li
"On engagement, video was the largest driver of engagement gains in Q4, with particular strength on Instagram, where Reels time grew more than 30% year-over-year globally. I’d also note that Facebook saw healthy double-digit growth in video time in Q4 as well. On ad load, the tailwinds that we had in Q4 were driven by the higher levels of ad load on both feed and video surfaces on Facebook and Instagram."
Finance VP · Chad Heaton
"In terms of where we are focused right now on driving down the cost of scaling compute, on silicon, that’s obviously one of the big cost drivers. We’re working to do that today through a variety of means, including diversifying our chip strategy so we can get the greatest cost efficiency for the workloads that we need to support. For example, we run a number of workloads with different requirements for compute, memory, and networking. And we’re focused on deploying the optimal chips for each of those workloads to deliver the best performance per watt and total cost of ownership. And we’re also continuing to expand our MTIA custom silicon program to support our core ranking and recommendation inference and training workloads."
CFO · Susan Li