Mark Shmulik

Mark Shmulik inquired about engagement trends for core user interactions like snapping with friends, particularly in the U.S., and asked how Snap's perspective on the long-term potential of Snapchat Plus has evolved.

Answer

CEO Evan Spiegel pointed to strong engagement signals, such as a 30% year-over-year growth in time spent on video calling and a 2% YoY increase in North America unique Snap senders. Regarding Snapchat Plus, he stated the business is becoming "much more meaningful," citing its $700 million annualized run rate and plans for new offerings like Lens Plus.

Mark Shmulik inquired about the long-term vision for 'My AI,' its potential differentiation, and its integration into products like Spectacles. He also asked about domestic engagement trends, particularly the contrast between declining DAUs and rising Spotlight viewership.

Answer

CEO Evan Spiegel stated that Snap aims to differentiate 'My AI' through visual communication and its integration into augmented reality, which he called the 'ideal interface for AI.' He noted that Spotlight now reaches over 500 million monthly active users and that view time grew significantly, driven by a focus on fresh, timely content which improves the user experience.

An analyst from Bernstein, on behalf of Mark Shmulik, asked about the observed impact on engagement and advertiser behavior from the potential TikTok disruption. They also questioned how this uncertainty affects Snap's priorities for the year, particularly concerning the 'Simple Snapchat' rollout.

Answer

CEO Evan Spiegel stated that the overall environment of uncertainty is benefiting Snap's business, as both advertisers and creators are focused on diversifying their spend and engagement strategies. He highlighted strong creator momentum, with a 40% year-over-year increase in creators posting content and over 1 billion public posts per month in Q4. Spiegel affirmed that Snap's priority is to support these partners during this period.

Speaking on behalf of Mark Shmulik, an analyst asked for more color on whether Spotlight viewership behavior differs outside of North America.

Answer

CEO Evan Spiegel confirmed strong global growth in Spotlight engagement. He clarified that in North America, Spotlight's growth is currently offsetting some declines in Stories engagement, resulting in a mix shift. He reiterated that overall, Spotlight has been a major driver of the company's total content view time growth.

Mark Shmulik questioned the scale of expected ad performance and engagement improvements in 2026 compared to prior years, and the timing of new efforts from Superintelligence Labs, including frontier model launches and new products like Vibes.

Answer

CFO Susan Li explained that ad improvements come from advancing larger-scale models and developing new inference models, driving significant absolute revenue growth even with small percentage gains. CEO Mark Zuckerberg stated there's no specific timing to announce for models or products from MSL but expects both novel models and products to emerge.

Mark Shmulick (Bernstein) asked CFO Susan Li about the anticipated scale of ad performance and engagement improvements in 2026 compared to the past two years. He also asked CEO Mark Zuckerberg whether an updated frontier model launch next year or progress from new products like Vibes should be the primary focus for tracking Meta Superintelligence Labs' efforts.

Answer

CFO Susan Li explained that ad performance improvements come from transferring knowledge from large-scale models (like GEM) to smaller runtime models and advancing inference models to scale compute efficiently. She noted that even small, basis-point improvements on Meta's large advertiser base translate into meaningful absolute revenue growth. CEO Mark Zuckerberg stated that there is no specific timing to announce for new models or products from Meta Superintelligence Labs but expects both novel models and products to emerge, with more details to be shared when available.

Mark Shmulik from AB Bernstein asked about the key performance indicators (KPIs) Meta is tracking to measure progress toward its superintelligence vision. He also questioned if the company's philosophy on the relationship between core business performance and investment cadence has evolved.

Answer

CEO Mark Zuckerberg outlined that he tracks the quality of talent, the quality of models produced, and the rate of improvement across all of Meta's AI systems. He reiterated the company's playbook of scaling products first and monetizing later. CFO Susan Li stated that the primary goal remains driving long-term consolidated operating profit growth, acknowledging it won't be linear. She affirmed the current period is a time for significant investment in AI to unlock future growth.

Mark Shmulik asked for the key performance indicators (KPIs) to track progress toward superintelligence and inquired if the relationship between revenue performance and investment cadence has changed.

Answer

CEO Mark Zuckerberg stated that internal markers are talent quality, model quality, and the rate of AI improvement across the company, noting a lag before this translates to monetized products. CFO Susan Li reiterated the focus on long-term operating profit growth, acknowledging that heavy investment years like the present will impact short-term growth but are crucial for future success.

Mark Shmulik from AB Bernstein asked what key performance indicators or markers Meta is tracking to measure progress toward its superintelligence vision. He also inquired if the relationship between revenue performance and the cadence of investment has changed.

Answer

CEO Mark Zuckerberg stated that internal markers include the quality of talent, the models produced, and their impact on improving all other AI systems across the company. He reiterated Meta's playbook of scaling products first and monetizing later, implying a lag in financial KPIs. CFO Susan Li added that the primary goal is long-term operating profit growth, which may not be linear, and that now is a crucial time to invest heavily in AI for future returns.

Mark Shmulik asked for an update on the progress of internal AI coding agents and whether they are on track to replace mid-level engineers, and also inquired about the cadence of spending given the slight reduction in the full-year expense guidance.

Answer

CEO Mark Zuckerberg confirmed that the development of AI coding agents is on track, with the potential for them to handle a substantial part of AI R&D by mid-to-late next year. CFO Susan Li explained the lowered expense outlook reflects more refined forecasts for compensation and other operating costs, offset by higher infrastructure and Reality Labs costs, adding that the company's efficiency work enables continued investment in strategic priorities.

Mark Shmulik of Bernstein questioned whether smart glasses are viewed as the primary future form factor for Meta AI or as a complementary experience, and asked about the future drivers of ad revenue growth, given that pricing has recently been the dominant factor.

Answer

CEO Mark Zuckerberg described glasses as the 'ideal form factor' for an AI assistant due to the contextual awareness they provide, but noted the long-term trajectory is still being determined this year. CFO Susan Li stated that Meta sees long-term opportunities to drive revenue from both pricing and impression growth. She explained that ongoing ad performance improvements will continue to benefit pricing, as delivering more conversions per impression increases its value.

Mark Shmulik from AB Bernstein asked for details on the drivers of the strong international business acceleration and whether search query volume is growing in line with the increasing Gen Z user base.

Answer

CFO Julia Donnelly explained that international acceleration is driven by a multi-pronged approach, including first-party sales in Europe and a mix of sales, resellers, and partnerships in Rest of World, which is narrowing the ARPU gap. CEO Bill Ready added that deep engagement per user is driven by intent-based, search-like experiences, which constitute about two-thirds of user interaction.

Mark Shmulik of AB Bernstein inquired about the drivers behind the strong acceleration in international revenue and asked for an update on search query volume trends in relation to the growing Gen Z user base.

Answer

CFO Julia Donnelly attributed international strength to narrowing the ARPU gap with the U.S. & Canada, driven by successful rollouts of lower-funnel ad products in Europe and a multi-pronged sales strategy in Rest of World. CEO Bill Ready added that two-thirds of platform interactions are search-related, describing the entire platform as a new, more visual and personalized form of search that resonates strongly with Gen Z.

Mark Shmulik of AB Bernstein inquired about the future mix of 'scrollers' versus 'seekers' on the platform and asked whether the growth in search usage is coming from early adopters or a broadening user base.

Answer

CEO Steve Huffman responded that he expects users to act as both scrollers and seekers, and the goal is to serve both use cases effectively. He clarified that the plan is to merge the 'Reddit Answers' product into the core search functionality, making it a capability layered throughout the app rather than a distinct destination, which will broaden its usage.

Mark Shmulik of AB Bernstein inquired about the expected future mix between 'scrollers' and 'seekers' on the platform and whether the growth in search usage is coming from new or existing user cohorts.

Answer

CEO Steve Huffman responded that they don't have a preferred mix, as they expect a single user to be both a 'scroller' and a 'seeker,' often in the same day. He clarified that the goal is to integrate the 'Reddit Answers' LLM capability directly into the core search product and other parts of the app, rather than treating it as a separate destination, to serve both use cases seamlessly.

Mark Shmulik asked about the future of consumer AI agents, like Project Mariner, and whether they will eventually conflict with or complement the core Google Search product.

Answer

CEO Sundar Pichai stated that he sees AI agents as an expansion of the opportunity space, not a conflict with Search. He explained that advanced models like Gemini 2.0 enable more complex, agentic actions on behalf of users, moving beyond simple information retrieval and fulfilling the long-held vision for Google Assistant. He described the opportunity as far from a zero-sum game.

Mark Shmulik inquired about the internal deployment of generative AI at Google, its impact on the workforce, and how user behavior in the experimental AI mode differs from that in the main Gemini app.

Answer

CEO Sundar Pichai explained that Gen AI is being used transformatively across the company, with over 30% of checked-in code now involving AI suggestions. He noted its use in customer service, finance, and other functions, calling it early days with more to come. Regarding AI mode, he said users are typing longer, more complex queries for tasks like product comparisons and trip planning, appreciating its clean design and fast response, which differs from deeper, iterative workflows like coding seen in the Gemini app.