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Meta Platforms, Inc. (META) First Quarter 2025 Results Conference Call April 30th, 2025 Kenneth Dorell, Director, Investor Relations

Our goal is to make it so that any business can basically tell us what objective they're trying to achieve -- like selling something or getting a new customer -- and how much they're willing to pay for each result, and then we just do the rest. Businesses used to have to generate their own ad creative and define what audiences they wanted to reach. But AI has already made us better at targeting and finding the audiences that will be interested in their product than many businesses are themselves, and that keeps improving. And now AI is generating better creative options for many businesses as well. I think that this is really redefining what advertising is into an AI agent that delivers measurable business results at scale. And if we deliver on this vision, then over the coming years I think that the increased productivity from AI will make advertising a meaningfully larger share of global GDP than it is today. 1 In just the last quarter, we're testing a new ads recommendation model for Reels, which has already increased conversion rates by 5%. And we’re seeing 30% more advertisers are using AI creative tools in the last quarter as well. The second opportunity is more engaging experiences. This will come in two forms: better recommendations for existing content types, and better, new types of content. In the last six months, improvements to our recommendation systems have led to a 7% increase in time spent on Facebook, 6% increase on Instagram, and 35% on Threads. Threads now also has more than 350 million monthly actives and continues to be on track to become our next major social app. https://s21.q4cdn.com/399680738/files/doc_financials/2025/q1/Transcripts/META-Q1-2025-Earnings-Call-Transcript-1.pdf

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