You should consider carefully the risks and uncertainties described below, in addition to other information
contained in this Annual Report on Form 10-K, including our consolidated financial statements and related
notes. The risks and uncertainties described below are not the only ones we face. Additional risks and
uncertainties that we are unaware of, or that we currently believe are not material, may also become important
factors that adversely affect our business. If any of the following risks actually occurs, our business, financial
condition, results of operations, and future prospects could be materially and adversely affected. In that event,
the trading price of our Class A common stock could decline, and you could lose part or all of your investment.
Facebook, our revenue, financial results, and business may be significantly harmed.
be significantly determined by our success in adding, retaining, and engaging active users. We anticipate that our
active user growth rate will decline over time as the size of our active user base increases, and as we achieve
higher market penetration rates. To the extent our active user growth rate slows, our business performance will
become increasingly dependent on our ability to increase levels of user engagement and monetization. If people
do not perceive our products to be useful, reliable, and trustworthy, we may not be able to attract or retain users
or otherwise maintain or increase the frequency and duration of their engagement. A number of other social
networking companies that achieved early popularity have since seen their active user bases or levels of
engagement decline, in some cases precipitously. There is no guarantee that we will not experience a similar
erosion of our active user base or engagement levels. Our user engagement patterns have changed over time and
can be difficult to measure, particularly as users engage increasingly via mobile devices and as we introduce new
and different services. Any decrease in user retention, growth, or engagement could render Facebook less
attractive to developers and marketers, which may have a material and adverse impact on our revenue, business,
financial condition, and results of operations. Any number of factors could potentially negatively affect user
retention, growth, and engagement, including if:
favorably received;
respect to the frequency, prominence, and size of ads that we display;
with a variety of mobile operating systems and networks, and that achieve a high level of market
acceptance;
to privacy and sharing, safety, security, or other factors;
interesting, useful, and relevant to them;
litigation, including settlements or consent decrees;
otherwise affect the user experience, such as any failure to prevent spam or similar content;