“And on the cost of revenue side, we expect the growth rate of cost of revenue to accelerate in ‘23 driven by the increased depreciation that we're seeing play through from the big CapEx investments that we've made so far and then as well as from Reality Labs with the launch of the next generation of the consumer Quest headset later next year.”

In context

“ne thing I’d point out first is just next year’s guide includes an estimated $2 billion in 2023 expenses that are one-time charges as part of our office facilities consolidation as we continue to rationalize our real estate footprint. We also expect a little over half of our expense dollar growth in 2023 to come from OpEx, with the rest coming from cost of revenue. On the OpEx side, the growth in 2023 OpEx is primarily driven by headcount-related costs from employees that we’ve already hired through 2022, and those hires have primarily been concentrated in technical and more senior roles. So we expect the slowdown in payroll growth in 2023 will be the result of the slowdown in headcount growth overall. As we mentioned, we expect to end 2023 with headcount roughly flat to where we are now. And on the cost of revenue side, we expect the growth rate of cost of revenue to accelerate in ‘23 driven by the increased depreciation that we’re seeing play through from the big CapEx investments that we’ve made so far and then as well as from Reality Labs with the launch of the next generation of the consumer Quest headset later next year. Operator: Your next question comes from the line of Justin Post with Bank of America. Justin Post: Great. A couple of questions on the Reels transition. When you think about that business, and people coming to the site, do you think – how does it compare to the News Feed as far as repeat rates or retention? And are you a little worried that it’s a little less proprietary than your prior content? And then second, I think there are a lot of questions on CapEx. Just wondering if the build here for this year and next is one-time to kind of get your capabilities in place, and then maybe you can go back to kind of a mid-teens level as a percentage of revenue or is just the transition in the business just a higher capital intensity business? Thank you. Dave Wehner: So Justin, on the Reels transi”