Brian Pitz

Brian Pitz asked about new customer acquisition driven by 'Grow a Garden,' the sustainability of its success, and the demographics of these new users, particularly if they are helping to age up the platform.

Answer

CEO David Baszucki confirmed that experiences like 'Grow a Garden' are appealing to all ages and are helping attract older users, contributing to the ongoing growth in the 13+ demographic. CFO Naveen Chopra added that 'Grow a Garden' skews older than the platform average and shows early signs of sustainability due to high retention and its social nature.

Brian Pitz of BMO Capital Markets asked about the expected bookings contribution from paid access games and potential cannibalization, and also requested an update on the 'age up' thesis and initiatives to attract more mature gaming content.

Answer

CEO David Baszucki stated that paid access is seen as accretive, not cannibalistic, and is essential to serving the entire gaming market. Regarding the 'age up' thesis, he pushed back strongly, citing rapid growth in the over-13 demographic as evidence that it is already happening. CFO Mike Guthrie added that after seven years of hearing this pushback, the platform simply continues to successfully age up.

Brian Pitz asked about the potential size of paid access games in the overall bookings mix and what made the game 'Dress to Impress' so viral, questioning if a new model for hit games is emerging.

Answer

CEO David Baszucki explained that increasing infrastructure efficiency allows for a 70% developer take-rate on paid access games, tapping into the fixed-price segment of the gaming market. He attributed the virality of 'Dress to Impress' not to a new model, but to creating the right platform conditions, such as improved performance on low-end devices and support for portrait mode, which enables viral hits to emerge organically.

Brian Pitz of BMO Capital Markets asked about reports of New Jersey pursuing a ban on micro-betting, inquiring about the size of this betting component for DraftKings and the perceived risk of such a ban.

Answer

Co-Founder & CEO Jason Robins assessed the likelihood of a ban as 'very, very low,' noting that bills are often introduced without much chance of advancing. He stated that micro-betting is not a large component for DraftKings, representing a single-digit percentage of live handle. While meaningful, it is not a huge part of the business.

Brian Pitz of BMO Capital Markets asked about reports of New Jersey potentially banning micro-betting. He inquired about the size of this betting component within DraftKings' live betting handle and the perceived risk of such a ban being enacted.

Answer

Co-Founder & CEO Jason Robins assessed the likelihood of a ban as 'very, very low,' dismissing the bill as unlikely to advance. He quantified micro-betting as a single-digit percentage of live handle, making it meaningful but not a critical component of the business, thus posing minimal risk.

Brian Pitz requested an update on the number of top 100 customers using the Scibids optimization product and asked about the capital allocation strategy, specifically regarding the pause in share buybacks during Q2.

Answer

CEO Mark Zagorski confirmed that over 50 of DV's top 100 customers are now using Scibids, with the current focus on scaling usage within that group. CFO Nicola Allais explained that the capital allocation strategy is unchanged but that the company was prudent in Q2 after a significant Q1 cash outlay for the RockerBox acquisition and buybacks. She noted $140 million remains authorized for future repurchases.

Brian Pitz inquired about the potential impact of AI agents on the importance of DV's viewability and invalid traffic solutions, and also asked for an update on business trends within the CPG vertical.

Answer

CEO Mark Zagorski responded that AI agents will be useful tools for deploying DV's data in more customized ways and are a key part of the company's integrated platform vision and internal efficiency strategy. CFO Nicola Allais added that the Q1 outperformance was broad-based across industries and there were no material trends to highlight specifically for the CPG vertical.

Brian Pitz requested an update on the onboarding of former Oracle (Moat) clients and their adoption of more advanced DV products. He also asked for an update on the CPG category, which had been a source of weakness.

Answer

CEO Mark Zagorski stated that while it's still early, there is positive uptake from former Moat clients, with a handful exploring new solutions and a couple launching Scibids (Sybase). CFO Nicola Allais clarified that the CPG issue was specific to one customer, and the overall vertical, which is ~27% of revenue, remains healthy and is growing with other large client wins.

Brian Pitz questioned how advertisers are thinking about potential tariffs and holiday demand, and also asked about the durability of the same-retailer contribution ex-TAC metric, given its recent dip and expected future churn.

Answer

CFO Sarah Glickman stated that Criteo's outlook is prudent regarding macro factors like tariffs, which are seen impacting consumer sentiment more than Criteo's largely in-country brand base directly. On same-retailer contribution ex-TAC, she acknowledged the 112% figure faces tougher comps but expects it to continue growing with the existing base, complemented by the onboarding of new retailers over time.

Brian Pitz requested more insight on the 'internal strategic initiatives' that could drive guidance upside and asked about the spend profile of clients using off-site retail media versus those who are not.

Answer

CFO Sarah Glickman clarified that 'strategic initiatives' refers to the broad set of investments across the platform designed to drive growth, with a focus on execution. CPO Todd Parsons explained that driving off-site adoption is about proving its value beyond reach by attaching clear KPIs and demonstrating incrementality, which depends on individual retailer maturity and packaging.

Brian Pitz asked for commentary on performance across verticals, particularly regarding reported softness in consumer discretionary, and sought an update on the scaling of the Albertsons partnership and its potential contribution to earnings.

Answer

CFO Sarah Glickman stated it was too early to call Q4 consumer trends but noted the company is monitoring them closely while expecting a good holiday season. She highlighted new wins like Office Depot and United Airlines. Regarding Albertsons, she confirmed the relationship is progressing as expected and contributing to growth, deferring more detail to the upcoming Retail Media Day.

Brian Pitz of BMO Capital Markets asked about near-term monetization opportunities within gaming, given partnerships with Grand Theft Auto and Roblox.

Answer

Co-CEO Greg Peters explained that near-term monetization is indirect, focusing on how games drive member acquisition, retention, and willingness to pay. He stated that direct monetization models would only be considered after the gaming offering achieves significantly more scale, and that investment will ramp in line with demonstrated member value.

Brian Pitts from BMO Capital Markets asked about the near-term monetization opportunities within Netflix's evolving gaming ambitions.

Answer

Co-CEO Greg Peters explained that near-term monetization is indirect, driven by how games enhance the core subscription business through increased user acquisition, retention, and willingness to pay. He confirmed they have seen positive proof points of this effect. While open to evolving the monetization model in the future, he stressed that the immediate focus is on disciplined investment to achieve much greater scale before direct monetization becomes a relevant question.

Brian Pitts of BMO Capital Markets asked about near-term monetization opportunities within gaming, given recent partnerships with Grand Theft Auto and Roblox.

Answer

Co-CEO Greg Peters explained that near-term monetization is indirect, by driving core business fundamentals like user acquisition, retention, and willingness to pay. He stated that direct monetization models would only be considered after the gaming offering achieves significantly more scale, and the current focus is on disciplined investment.

Brian Pitz inquired about the potential impact of console price increases on the company's guidance and asked for a breakdown of the nearly $2 billion in capitalized software development costs, specifically the portion related to GTA VI.

Answer

CEO Strauss Zelnick stated that the guide for the next 10 months would not be meaningfully affected by console price changes due to the substantial existing installed base. CFO Lainie Goldstein explained that the $2 billion in development costs supports the entire robust multi-year release schedule and that the company does not break down these costs on a per-title basis.

Brian Pitz inquired about IAS's traction on alternative platforms like gaming, specifically with Roblox, and asked how the rise of AI agents impacts the importance of viewability and invalid traffic solutions.

Answer

CEO Lisa Utzschneider noted that IAS recently expanded its partnership with Roblox to offer media quality and performance solutions, but gaming remains a lower priority than social media due to scale. On AI, she emphasized that IAS is an 'AI-first' company that strategically applies AI to produce measurable outcomes, enhance execution, and build trust, viewing it as an extension of their capabilities.

Brian Pitz requested an update on the market trend of advertisers shifting from 'insurance to performance' and asked for the latest on IAS's integration with video gaming platforms like Roblox.

Answer

CEO Lisa Utzschneider confirmed that efficiency and ROI are top priorities for advertisers, making IAS's performance-driving products highly relevant. She stated that while brand protection ('insurance') is crucial, driving ROI ('performance') is equally or more important. On gaming, she described it as an important emerging channel but ranked it behind social optimization, retail media, and audio in terms of current brand priorities.