Andrew

Andrew, on behalf of Derek Wood, asked about the drivers behind the acceleration of Remaining Performance Obligations (RPO) excluding PeopleSoft to 12% from 9% last quarter, and whether the gap between RPO growth and revenue guidance indicates conservatism or a longer translation time to revenue. He also inquired about sales productivity, the progression of the Hunter-Farmer model in North America, and the potential for stronger North American business growth this year.

Answer

CFO Michael Perica stated that no particular trend altered the RPO composition or duration, and that the RPO growth provides increased confidence in achieving or potentially exceeding top-line expectations, though two quarters do not establish a long-term trend. CEO Seth Ravin noted increasing sales across North America in 2025, setting the stage for a stronger 2026, with the primary challenge being higher retention losses in 2025. He sees stabilization in North America, expressing confidence by raising sales quotas and adding 20 sellers, expecting higher numbers throughout the year, particularly in the second half. The Hunter-Farmer model is generating results after initial disruption and is being expanded to Latin America.

Andrew, on behalf of Shweta Khajuria, asked about the sustainability of growth in the trading cards category and key metrics to evaluate its success.

Answer

CEO Jamie Iannone affirmed a long runway for growth in trading cards, attributing recent momentum to trust and innovation through features like My Collection, Magical Listing, bulk listing, and partnerships with PSA. He noted that while growth isn't linear, the current healthy balance of new buyers, sold items, and average selling price provides confidence in the durability of GMV, even if year-over-year growth decelerates.