Founder, Chairman and Chief Executive Officer at Meta Platforms
Hi, everyone, and thanks for joining today. This was a solid quarter for our products and business, it was also an important one for our company. In October, we announced that Meta would be our new name and we laid out our vision for the Metaverse. And when we shared our plans to connect, I said, this is not something that we're going to do on our own. The Metaverse will be built by creators and developers, will be interoperable and will touch many different parts of the economy. In the months since, it's been exciting to see lots of other companies share their own plans for the Metaverse and how their experiences and products might show up too. And I look forward to partnering with a lot of them as we work to bring this to life together.
The last year was about putting a stake in the ground for where we're heading, the next year is going to be about executing. And today, I'm going to discuss our seven major investment priorities for '22. They're Reels, Community Messaging, Commerce, Ads, Privacy, AI and of course, the Metaverse. And these are the areas that we're putting a lot more talent and budget towards.
But before I get to that, I want to briefly touch on our Q4 results, which I know Sheryl and Dave, are going to go deeper. I'm proud of the work that our team did here. We shipped products, our community continued to grow and businesses of all sizes turned to us to help them reach people. But there are two things that I want to call out that are having an impact on our business. The first is the competition. People have a lot of choices for how they want to spend their time. And apps like TikTok are growing very quickly. And this is why our focus on Reels is so important over the long term, as do our work to make sure that our apps are the best services out there for young adults, which I spoke about on our last call.
The second area and related to this is that we are in the middle of the transition on our own services towards short form video like Reels. As more activity shifts towards this medium, we are replacing some time in News Feed and other higher monetizing services. So as a result of both competition and the shift to short-form video as well as our focus on serving young adults, where we're optimizing overall engagement, we're going to continue to see some pressure on impression growth in the near-term. And I'm confident that leaning harder into these trends is the right short term trade off to make in order to get long term gains and we made these types of transitions before with Mobile Feed and Stories, where we took on headwinds in the near term to align with important trends over the long term. And while video has historically been slower to monetize, we believe that over time short-form video is going to monetize more like Feed or Stories than like Watch. So I'm optimistic that we will get to where we need to be with Reels too.
Ultimately, our continued success relies on building new products that people find valuable and enjoy using. And in a competitive marketplace, we are focused on understanding the areas that we deliver on for people and executing against the strategy. David will share more on the impacts to our business in a minute. But before we get to that, I wanted to discuss our investment priorities for 2022.
The first one is Reels. Now it's clear that short-form video will be an increasing part of how people consume content moving forward and Reels is now our fastest-growing content format by far. It's already the biggest contributor to engagement growth on Instagram and it is growing very quickly on Facebook too. And as we continue to improve the tools for creators, ranking for the people watching and as we roll out the product everywhere across the world, we expect that this will continue growing quickly. So looking ahead, we are investing in simplifying video across Instagram, building more creative and monetization tools for creators, and helping more people discover and interact with relevant Reels.
The next investment priority is Community Messaging, which is like chatting with groups of people that you have something in common, whether that's our shared community and interest or experience. We already run some of the world's most popular messaging platforms where people connect one on one or in groups with friends, family and colleagues and we're seeing people increasingly want to share more things in messages, that they were previously may be posted to Feed. So I think the popularity that we're seeing with apps like Slack and the Workplace or Discord or Telegram, reflect this trend too.
So we're going to help people on WhatsApp better organize the group chats and make it easier to find information for the communities they're part of, like parent groups or neighborhoods. And we're also building community chats on Facebook and Messenger for real-time conversations within those groups and communities.
I also want to call it business messaging, since it's an area where there is a real momentum here. We estimate that there are more than 1 billion users are connecting with a business account across our messaging services every week. And we're partnering with companies like Uber and JioMart to help people book a ride or get the groceries delivered right from a chat. And we're building new tools to make buying online better for people and easier to manage for businesses, and we believe that this can be an important business for us in the years to come.
We're also making good progress on our broader commerce efforts. We already help a lot of businesses reach new and existing customers with personalized ads and our commerce tools are an extension of that. It is a seamless way for people and businesses buy and sell through our apps. And our strategy here since introducing Shops a year and a half ago, has been to make it easy as possible for people to make a purchase after discovering a new brand or products without having to switchover to a browser or re-enter their payment info. And Sheryl will share more about our progress here, including some of the success we saw over the holidays.
Now next step is Ads. And with Apple's iOS changes and new regulation in Europe, there is a clear trend where less data is available to deliver personalized ads. But people still want to see relevant ads and businesses still want to reach the right customers. So we are rebuilding a lot of our ads infrastructure, so we can continue to grow and deliver high quality personalized ads.
The next two priorities I want to discuss focus on infrastructure that underpins all of our products. The first one is privacy and we've made huge investments in strengthening our approach to privacy, including rebuilding our privacy program and our privacy review process. And we made updates to bring greater privacy to our products, including end-to-end encrypted backups and disappearing messages on WhatsApp and end-to-end encrypted voice and video calling on Messenger. And over the next few years, we're focused on building out a major privacy infrastructure project that will include our privacy commitments at a deeper level of our technical foundation to make them more durable and make product development faster in this evolving environment.
On to AI. This is on the areas where we've routinely seen strong returns on our investments over time that we've expected. Advances in AI enable a lot of the experience that I've talked about so far. It enabled us to deliver better ads to people while using less data, it's core to all of our safety and security work. It's meaningfully improved the relevance of Reels and overall content ranking in general, and it pays a big role in our commerce efforts.
Artificial intelligence is also going to play a big role in our work to help build the Metaverse. We just announced our AI Research SuperCluster, which we think will be the world's fastest supercomputer once it is complete later this year. And this is going to enable new AI models that will learn from trillions of examples and understand hundreds of languages, which will be key for the kinds of experiences that we're building.
Now looking ahead, we are focused on further scaling our computing power and transforming our AI infrastructure through advances in foundational research as well as improvements to data center design, networking, storage and software.
Now the last investment priority here is the Metaverse. We are focused on the foundational hardware and software that are required to build an immersive embodied Internet that enables better digital social experiences than anything that exists today. On the hardware front, we're seeing real traction with Quest 2. People have spent more than $1 billion on Quest store content, helping virtual reality developers grow and sustain their businesses. We had a strong holiday season and Oculus reached the top of the app store for the first time on Christmas Day in the U.S.
We are working towards a release of a high-end virtual reality headset later this year. And we continue to make progress developing Project Nazare, which is our first fully augmented reality glasses.
As for software, Horizon is core to our Metaverse division. I mean, this is our social VR world building experience that we recently opened to people in the U.S. and Canada. And we've seen a number of talented creators build world, like a recording studio, where producers collaborate or a relaxing space to meditate. And this year we plan to launch a version of Horizon upon mobile too. So that will bring early Metaverse experiences to more surfaces beyond the VR.
While the deepest and most immersive experiences are going to be in virtual reality, you're also going to be able to access these worlds from your Facebook or Instagram apps as well and probably, more over time. So this will enable us to build even richer social experiences where you can connect with friends in the Metaverse, whether they're in VR or not.
We're also focused on avatars, which will be how you represent yourselves in Horizon and across other developers experiences in the Metaverse. In December, we rolled out our metaverse Avatar SDK to all Unity developers on Quest and Rift and windows-based VR platforms, letting developers bring MetaAvatars to their own VR experiences. We just announced an update that lets you further customize your avatar to better express yourself and we're introducing digital clothing too, starting with an NFL partnership you can cheer on your favorite team.
You can use your avatar across Quest, Facebook, Instagram and Messenger. And so it serves as another bridge between our 2G social apps and 3D immersive virtual reality experiences. We have a bunch of work ahead to make the avatars as expressive and high fidelity as they need be to fully represent us and help us fill present with one another, but I am very excited for the advances that we're making here.
Now making meaningful progress across all seven of these areas is going to improve the services that we offer today and will help power a more social, intuitive and entertaining Metaverse, where people, businesses and creators can all thrive. And this fully realized vision is still a ways off. And although the direction is clear, our path ahead is not yet perfectly defined. But I am pleased with the momentum and the progress that we've made so far, and I am confident that these are the right areas of investments for us to focus on going forward.
2022 is the first page of the next chapter for our company. I'm grateful for all the talented teams at Meta and our partners for executing on this important work. And of course, for all of you who are on this journey with us. And now here is Sheryl.