Facebook’s stock has lost about half its value since its IPO in May 2012. Mark Zuckerberg expressed disappointment with the stock performance but emphasized the company’s long-term mission. He believes that Facebook’s mobile strategy will be crucial for the company’s long-term success.

Mobile Strategy
Zuckerberg highlighted the importance of mobile, indicating that it had made significant strides in the last six months. He mentioned the launch of new mobile apps, iOS integration, and the absence of mobile ads six months ago. Zuckerberg believes that mobile offers advantages in terms of users, engagement, and monetization. He emphasized the higher engagement and daily usage on mobile compared to desktop. Improvements in the iOS app have led to a doubling of posts consumed on the platform.

Mission-Driven Approach
Zuckerberg reiterated Facebook’s mission-driven philosophy, stating that the company’s primary goal is to make the world more open and connected. However, he acknowledged the need to build a successful business to support this mission. He explained that a successful platform requires tools for developers and a business model that incentivizes advertisers. Zuckerberg believes that both mission and business goals are intertwined and essential for Facebook’s success.

Employee Morale
Zuckerberg acknowledged the challenges of maintaining employee morale during stock price fluctuations. He mentioned the importance of incentivizing employees and maintaining a healthy company culture. Specific strategies for addressing morale were not discussed in the given context.

Mark Zuckerberg on Facebook Controversies:
Facebook has faced both praise and criticism in the past. The company has developed a strong understanding of its identity and remains focused on its mission.

Motivations of Facebook Employees:
Employees at Facebook are driven by a desire to build products they are proud of. The company’s products are often a source of pride and motivation for employees. Facebook’s new product releases and innovations attract talented individuals to the company.

Compensation Structure at Facebook:
Facebook uses a straightforward compensation structure that translates cash into shares. The number of shares an employee receives depends on the perceived value of those shares. This structure incentivizes employees to stay with the company and invest in its long-term success. Despite recent challenges, Facebook remains an attractive place for talented individuals to work.

Mobile as a Strength and Opportunity:
Mobile is a key area of growth for Facebook, with more users and increased engagement. The company’s new iOS app has doubled the amount of feed stories consumed per user on a daily basis. Monetization on mobile holds significant potential, as it is more comparable to TV advertising than desktop advertising.

Facebook’s Mobile Monetization Strategy:
Ads on mobile are more likely to be integrated into the product. This is in contrast to the desktop, where ads often appear in the right-hand column. Early experiments with integrated ads have shown positive results.

The Mistake of Betting on HTML5:
Facebook originally focused on HTML5 for its mobile development. This approach did not yield the desired quality, leading to delayed development and wasted time. After a two-year commitment to HTML5, the decision was made to switch to native development. The company acknowledges this as a significant strategic mistake.

Moving Forward with Native Apps:
Facebook is now focused on developing native apps for iOS and Android. The iOS app is in good shape, with the Android app expected to follow soon.

Zuckerberg’s Admission of a Strategic Mistake:
Mark Zuckerberg acknowledged that sticking to HTML5 for too long was a significant strategic error. Despite having more users on the mobile website than on iOS and Android apps combined, Facebook realized that native development was necessary for a superior mobile experience.

The Decision to Transition to Native Apps:
Approximately 20 months ago, Facebook decided to fully commit to HTML5 development, leading to the creation of FaceWeb. However, after several months, the team recognized that the quality was not improving to the desired level, prompting a shift to native development for iOS and Android.

Scrapping FaceWeb in Favor of Native:
Zuckerberg explained that the decision to scrap FaceWeb was not complete, but the focus shifted to minimizing its development while prioritizing native apps. The goal was to improve the user experience and deliver the highest quality mobile apps.

Improvements and Future Developments:
The current version of the native app is not considered the final product, and Facebook is actively working on adding more features and enhancements. Zuckerberg is excited about the upcoming releases, which will incorporate features developed over the past year and introduce new innovations.

Rewarding Android Users:
Zuckerberg confirmed that Android users can expect a better app soon, as Facebook is working on adapting the infrastructure developed for iOS. The release date is not specified, but it will be ready when it meets Facebook’s standards and quality expectations.

Reorganizing Product Teams:
Facebook’s internal structure underwent changes to improve product development efficiency. Functional organization was replaced by product groups, with each group responsible for a specific product or area. This reorganization provided clear ownership and accountability for each product, leading to focused roadmaps and rebuilding efforts.

Mobile Retooling and Decentralization:
Facebook’s mobile retooling involved rebuilding the native infrastructure and rethinking various aspects of mobile development. This restructuring resulted in a transition from a centralized mobile core team to a decentralized approach, with product groups taking ownership of mobile development. The aim was to ensure that all teams prioritize mobile and contribute to the development of a mobile-first company.

Zuckerberg’s Involvement in Coding:
Zuckerberg confirmed that he still codes for personal enjoyment but follows Facebook’s rule of maintaining any code he checks in. To avoid disrupting team dynamics and management responsibilities, he no longer checks in code to the main branch but continues to experiment and contribute to the development process. Zuckerberg’s admission of his code breaking highlights the iterative nature of software development and the need for continuous improvements.

Instagram Acquisition:
Facebook acquired Instagram to access their talented engineers, impressive product, and 100 million registered users. Zuckerberg sought personal connections with developers, including Instagram’s Kevin Systrom, and recognized the shared potential for collaboration. The tension arose due to Instagram’s reliance on Facebook for distribution and their need to diversify their strategic dependencies. Zuckerberg proposed a merger to expedite the implementation of the jointly envisioned roadmap, resulting in the acquisition. Facebook aims to support Instagram’s growth without forcing any infrastructure or integration mandates, prioritizing partnership advancement.

Facebook Phone Strategy:
Zuckerberg dismisses the concept of a Facebook phone as a misdirected strategy. The company’s focus is on building a network deeply integrated into various devices rather than competing in the hardware market. The vast number of Facebook users dwarfs the potential impact of a company-built phone. Unlike Apple, Google, Samsung, Amazon, and Microsoft, Facebook seeks to integrate its services with existing devices and platforms.

Mobile Platforms:
Facebook sees three major mobile platforms: mobile web (where they have the most integration), iOS, and Android. On iOS, they plan to integrate better with the new features Apple announced. On Android, they can use platform hooks to create interesting applications.

Importance of Mobile:
Zuckerberg himself uses mobile devices extensively and wrote the S1 founder’s letter on his phone. Mobile is where the energy and ecosystem are now focused.

Search:
Facebook handles about a billion queries daily, and search is evolving from keyword-based to answer-based. Zuckerberg sees an opportunity for Facebook to answer unique questions based on users’ friends and connections. They have a team working on search, but the extent of the effort is unclear.

Legacy Platform Canvas:
Zynga’s decline in growth is offset by the rise of other game companies like KickSci and King.com on Facebook’s platform. The number of monthly active gamers on Facebook has increased to 235 million despite Zynga’s challenges.

Open Graph and Social Context:
Open Graph, a primary focus for Zuckerberg, aims to enable users to bring their information and friends to apps effortlessly. It allows for cross-app context sharing, creating a more social and engaging experience for users. Examples of successful apps utilizing Open Graph include Spotify, Airbnb, and fitness apps like Nike Plus and Runkeeper.

Mobile App Installs:
Facebook’s recently launched Mobile App Installs product bridges platform and advertising. Developers can specify market segments and bid for app installs. The Facebook SDK integration simplifies app promotion and leverages Facebook’s massive user base. Social context is provided by showcasing friends who have installed the app.

Zuckerberg’s Excitement about New Products:
Zuckerberg expresses enthusiasm for a new product that has shown promising results in private testing. He describes it as being in line with Facebook’s platform focus and a valuable distribution tool for developers.

Personal Motivation Driven by Mission:
Zuckerberg clarifies that his motivation for working at Facebook is not primarily driven by fun but by a sense of mission. He acknowledges the fluctuating nature of public opinion about Facebook, preferring to be underestimated to maintain strategic flexibility.

Long-Term Projects and Vision for the Future:
Zuckerberg hints at significant long-term projects that he is retooling to work on. He emphasizes the importance of these projects in shaping Facebook’s legacy of connecting everyone and facilitating sharing.

Overall Enthusiasm and Excitement:
Zuckerberg acknowledges the challenges faced by Facebook but remains upbeat about the company’s future. He expresses collective excitement within the company for the work they are doing.