。2Webcast and Conference Call InformationFacebook will host a conference call to discuss the results at 2 p.m. PT / 5 p.m. ET today. The live webcast of Facebook'searnings conference call can be accessed at investor.fb, along with the earnings press release, financial tables, andslide presentation. Facebook uses the investor.fb and newsroom.fb websites as well as Mark Zuckerberg'sFacebook Page (facebook/zuck) as means of disclosing material non-public information and forcomplying with its disclosure obligations under Regulation FD.Following the call, a replay will be available at the same website. A telephonic replay will be available for one weekfollowing the conference call at +1 (404) 537-3406 or +1 (855) 859-2056, conference ID 6461349.Transcripts of conference calls with publishing equity research analysts held today will also be posted tothe investor.fb website.About FacebookFounded in 2004, Facebook’s mission is to give people the power to build community and bring the world closer together.People use Facebook to stay connected with friends and family, to discover what’s going on in the world, and to shareand express what matters to them.ContactsInvestors:Deborah Crawfordinvestor@fb / investor.fbPress:Vanessa Chanpress@fb / newsroom.fb3Forward Looking StatementsThis press release contains forward-looking statements regarding our future business expectations, which are subject tothe safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements areonly predictions and may differ materially from actual results due to a variety of factors including: our ability to retain orincrease users and engagement levels; our reliance on advertising revenue; our dependency on mobile operating systems,networks, and standards that we do not control; risks associated with new products and changes to existing products aswell as other new business initiatives; our emphasis on user growth and engagement and the user experience over short- term financial results; maintaining and enhancing our brand and reputation; our ongoing safety, security, and contentreview efforts; competition; risks associated with government actions that could restrict access to our products or impairour ability to sell advertising in certain countries; litigation and government inquiries; privacy and regulatory concerns;risks associated with acquisitions; security breaches; and our ability to manage growth and geographically-dispersedoperations. These and other potential risks and uncertainties that could cause actual results to differ from the resultspredicted are more fully detailed under the caption Risk Factors in our Quarterly Report on Form 10-Q filed with theSEC on October 31, 2018, which is available on our Investor Relations website at investor.fb and on the SEC websiteat sec.gov. Additional information will also be set forth in our Annual Report on Form 10-K for the year endedDecember 31, 2018. In addition, please note that the date of this press release is January 30, 2019, and any forward- looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. Weundertake no obligation to update these statements as a result of new information or future events.Non-GAAP Financial MeasuresTo supplement our condensed consolidated financial statements, which are prepared and presented in accordance withgenerally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financialmeasures: revenue excluding foreign exchange effect, advertising revenue excluding foreign exchange effect and freecash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for,or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that thereare material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, thesemeasures may be different from non-GAAP financial measures used by other companies, limiting their usefulness forcomparison purposes. We compensate for these limitations by providing specific information regarding the GAAPamounts excluded from these non-GAAP financial measures.We believe these non-GAAP financial measures provide investors with useful supplemental information about thefinancial performance of our business, enable comparison of financial results between periods where certain items mayvary independent of business performance, and allow for greater transparency with respect to key metrics used bymanagement in operating our business.We exclude the following items from our non-GAAP financial measures:Foreign exchange effect on revenue . We translated revenue for the three months and year ended December 31, 2018 usingthe prior year's monthly exchange rates for our settlement currencies other than the U.S. dollar, which we believe is auseful metric that facilitates comparison to our historical performance. Purchases of property and equipment, net.We subtract net purchases of property and equipment in our calculation of freecash flow because we believe that this methodology can provide useful supplemental information to help investors betterunderstand underlying trends in our business. Free cash flow is not intended to represent our residual cash flow availablefor discretionary expenditures. For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, pleasesee the Reconciliation of GAAP to Non-GAAP Results table in this press release.4FACEBOOK, INC.CONDENSED CONSOLIDATED STATEMENTS OF INCOME(In millions, except for per share amounts)(Unaudited)Three Months EndedDecember 31,Year Ended December 31, 2018201720182017Revenue $ 16,914 $ 12,972 $ 55,838 $ 40,653 Costs and expenses: Cost of revenue 2,796 1,611 9,355 5,454 Research and development 2,855 1,949 10,273 7,754 Marketing and sales 2,467 1,374 7,846 4,725 General and administrative 976 686 3,451 2,517 Total costs and expenses 9,094 5,620 30,925 20,450 Income from operations 7,820 7,352 24,913 20,203 Interest and other income (expense), net 151 110 448 391 Income before provision for income taxes 7,971 7,462 25,361 20,594 Provision for income taxes 1,089 3,194 3,249 4,660 Net income $ 6,882 $ 4,268 $ 22,112 $ 15,934 Less: Net income attributable to participating securities — 2 1 14 Net income attributable to Class A and Class B common stockholders $ 6,882 $ 4,266 $ 22,111 $ 15,920 Earnings per share attributable to Class A and Class B commonstockholders: Basic $ 2.40 $ 1.47 $ 7.65 $ 5.49 Diluted $ 2.38 $ 1.44 $ 7.57 $ 5.39 Weighted average shares used to compute earnings per share attributableto Class A and Class B common stockholders: Basic 2,872 2,907 2,890 2,901 Diluted 2,886 2,954 2,921 2,956 Share-based compensation expense included in costs and expenses: Cost of revenue $ 82 $ 50 $ 284 $ 178 Research and development 675 587 3,022 2,820 Marketing and sales 130 106 511 436 General and administrative 84 71 335 289 Total share-based compensation expense $ 971 $ 814 $ 4,152 $ 3,723 。。。。。。