Clark Lampen

Clark Lampen inquired whether the previously forecasted $120 million+ synergies from the Hulu Live merger included revenue and expense synergies, specifically regarding ad server integration and consumer packaging flows. He also asked for directional context on subscriber growth expectations for fiscal Q2 or Q3, assuming no changes with NBC.

Answer

CEO David Gandler and CFO John Janedis clarified that the $120 million+ synergies were assumed to take place on day one but will flow over time. Short-term synergies include the Disney Ad Server integration, expected to drive double-digit uplift in CPM and fill rates. Medium-to-long-term synergies relate to content/programming renewals, with new procurement synergies also being explored. Gandler highlighted the strong performance of the Fubo Sports service, noting high trial conversion and 30% better retention than the legacy plan. He also emphasized the potential of the ESPN partnership to drive subscriber growth and improve blended SAC, aiming for profitable growth without significant Olympic-related spending.

Clark Lampen asked about the macroeconomic impact on subscriber metrics and ad demand, and requested a normalized view of Q2 growth, excluding the effects of the TelevisaUnivision drop and the prior year's Copa America.

Answer

CFO John Janedis stated that on a like-for-like basis, Q2 subscriber growth would be 'relatively flattish.' He noted no significant macro headwinds, with English package churn improving year-over-year and April reactivations exceeding expectations. On advertising, he highlighted that April was the strongest month for growth year-to-date.

Clark Lampen asked for management's perspective on the deceleration in subscriber growth relative to the industry and what strategies, such as price and package adjustments, could reaccelerate the migration rate from traditional cable.

Answer

CEO David Gandler attributed the trend to a maturing U.S. market but emphasized a strong secular tailwind remains. He positioned Fubo's aggregated bundle as increasingly competitive against a growing number of ad-supported SVOD services. CFO John Jenadis added that two new, lower-priced packages launched in Q4 have shown pleasing results in their first few months.

Clark Lampen sought more specificity on the "significance" of prediction markets, asking if it primarily relates to customer access in new states or if DraftKings can offer unique value to win in this market.

Answer

Jason Robins, Co-founder and CEO of DraftKings, stated that their competitive advantage in prediction markets stems from their ability to "out-execute" across product, customer experience, and marketing, leveraging extensive data, expertise, and established systems. He highlighted their strong brand, association with sports, and media partnerships (ESPN, NBCUniversal) as significant advantages, positioning them to compete effectively against new entrants.

Clark Lampen of BTIG asked two questions: whether AI could start having a discernible benefit on top-line revenue, and for an update on iGaming performance following adjustments to promotions and rewards mentioned last quarter.

Answer

Co-Founder & CEO Jason Robins stated that while the current focus for AI is on expense reduction, there are top-line driving initiatives in areas like trading that could provide upside, though it's not yet factored into guidance. Regarding iGaming, he said momentum is returning and the business is ramping back up, but there is still more work to be done to reach its full potential.

Clark Lampen of BTIG posed two questions: First, whether AI initiatives could soon have a discernible impact on top-line revenue in addition to cost savings. Second, he asked for an update on iGaming performance and whether the promotional adjustments from the prior quarter were fully realized.

Answer

Co-Founder & CEO Jason Robins responded that while AI's primary focus is currently on cost efficiency, top-line initiatives in areas like trading are being explored but are not yet in guidance. Regarding iGaming, he stated that momentum is improving but there is still more work to do to reach their desired growth rate.

Clark Lampen asked about the betting tech business's growth exceeding the U.S. benchmark, questioning if a 20%-30% growth range is sustainable. He also sought clarification on the media business's outperformance, specifically what led to spend exceeding expectations (50%-60% plan vs. >80% realized growth).

Answer

Mark Locke (CEO) affirmed expectations for strong growth in the betting tech business, citing rapid product rollout, BetVision expansion, and media integration compounding growth, aligning with long-term 30% margin targets. For media, Mark Locke attributed the outsized growth to successful agency partnerships and strong returns on advertising products, which are proving their value.

Clark Lampen asked about the sustainability of 20%-30% above-market growth for the betting tech business and what factors led to the media business exceeding its revenue growth expectations (50-60% planned vs. >80% realized).

Answer

Mark Locke (CEO) affirmed strong growth expectations for the betting tech business, citing product rollout (23,000 events), BetVision integration, and compounding growth opportunities, aligning with the 30% long-term margin target. For media, Mark Locke (CEO) attributed the outsized growth to strong returns from products and new agency deals.

Clark Lampen asked if lacking first-party technology in stadiums limits revenue opportunities from augmentations and inquired about FANHub's market traction and any sales cycle delays due to the macroeconomic backdrop.

Answer

CEO Mark Locke explained that while first-party tech like GeniusIQ is key to their long-term strategy for creating virtual recreations, the company can and does generate revenue today by augmenting third-party TV streams. He stated that FANHub is tracking to expectations with minimal macro impact, as its ability to create unique ad inventory within products like BetVision provides a strong value proposition.

Clark Lampen asked for quantification of BetVision's contribution to 2025 guidance, the company's flexibility for ad insertion, and whether margin expansion would be driven by gross margin or OpEx leverage.

Answer

CEO Mark Locke confirmed that Genius has the control and ability to insert advertising into the BetVision product. CFO Nicholas Taylor did not quantify the specific BetVision revenue in the 2025 guide but noted the larger strategic value is future upside. He added that the 2025 margin expansion profile would be similar to 2024, driven by leverage on direct costs and gross margin improvement.

Clark Lampen asked if developer growth has kept pace with user growth, implying a proportionate increase in the developer ecosystem. He also inquired if the AI-oriented investment cycle could lead to more immediate yield compared to past cycles, reflected in 2026 comments.

Answer

David Baszucki (CEO, Roblox) stated that developer growth shows a 'flattening of that tail,' with many more creators making a living or significant income, aligning with the vision of 10% of global gaming bookings on Roblox. Naveen Chopra (CFO, Roblox) explained that some AI investments, like those in discovery and economy, yield near-term benefits, while others, particularly CapEx for training and deploying models on bare metal, will have a longer-term payback, with benefits increasingly contributing in 2026 and beyond.

Clark Lampen asked about the broader ecosystem implications of recent growth, questioning if increased developer earnings and platform improvements could accelerate growth into 2026 and beyond.

Answer

Founder and CEO David Baszucki stated that while results are strong, the company is still executing a long-term technology roadmap focused on performance, discovery, and economy. He emphasized that significant technical work remains to expand into new genres and fully realize the vision of a single build running on any device, suggesting that these ongoing investments will continue to fuel future growth.

Clark Lampen asked about the ecosystem implications of recent successes, questioning why the increased developer earnings and reduced friction might not lead to a faster growth rate in 2026 and beyond.

Answer

CEO David Baszucki responded that Roblox is still executing a long-term technology roadmap focused on performance, discovery, and economy. He emphasized that significant technology is still in the pipeline to support a single build across all devices and to accelerate genre expansion, suggesting that the full impact of their investments has not yet been realized.

Clark Lampen asked about the biggest opportunities to improve monetization per hour, given that most users don't spend, and how the push for direct payments has affected the gift card strategy.

Answer

CEO David Baszucki responded that the primary focus is on DAU and hour growth via genre expansion into areas like RPG and sports, which naturally have higher monetization. He also noted that tools like price optimization and regional pricing are already improving bookings per hour. Regarding payments, he explained that savvy users are increasingly aware that gift cards offer better value (25% more Robux) than mobile payments, keeping the gift card business very healthy.

Clark Lampen of BTIG asked if the push for personalization and discovery was creating a 'live services burden' or burnout for developers, and also requested clarity on the drivers of 2025 margin improvement, specifically the split between direct cost (COGS) and OpEx leverage.

Answer

CEO David Baszucki responded that developers value transparency and that the platform encourages healthy, iterative updates rather than monolithic ones, which mitigates burnout. CFO Mike Guthrie explained that the forecasted 2025 margin improvement is primarily driven by OpEx leverage from disciplined hiring and infrastructure efficiencies. He noted that potential COGS leverage is an upside they are optimistic about but have not fully modeled into guidance.

Clark Lampen of BTIG asked about any changes in marketing behavior from core operator customers and whether the company's view on its long-term structural EBITDA margin has changed given the evolving channel mix.

Answer

Co-Founder and CEO Charles Gillespie responded that the long-term adjusted EBITDA margin outlook remains 35-40%, though currently at the lower end due to the mix shift towards non-SEO channels. He emphasized the rapid growth of the sports data services business. Regarding operator behavior, he noted a continuing trend towards more revenue-share deals, which affects near-term revenue comparability but is profitable long-term.

Clark Lampen asked for an update on the progress of Casinos.com, specifically regarding its domain authority and traffic-building efforts, and how it might perform during a future iGaming legalization cycle. He also inquired about the expected business mix (performance vs. non-performance revenue) when the company reaches its $100 million EBITDA target.

Answer

CEO Charles Gillespie reported that Casinos.com is trending up nicely, with a unique tone of voice being developed and creative PR initiatives like "International Casinos Day" to build the global brand. Regarding the business mix at $100M EBITDA, he noted that the acquired sports data services (OddsJam/OpticOdds) have slightly higher margins and are growing faster than the core marketing business. He projected that this segment could contribute 30-40% of the total EBITDA at that future milestone.

Clark Lampen asked for the company's underlying organic growth rate for 2025, excluding M&A, and inquired about the historical durability of the business and player spending habits during tougher macroeconomic environments.

Answer

CEO Charles Gillespie addressed the macro question, stating the online gambling industry has historically been 'incredibly resilient' and not correlated with economic cycles, as it's not a major purchase for consumers. CFO Elias Mark tackled the organic growth question, explaining that after accounting for the acquisition's contribution, the core marketing business is expected to grow in the 'low teens.' This reflects strong growth from owned websites, partially offset by a planned decline in lower-margin media partnership revenue.

Clark Lampen of BTIG asked about the biggest product deltas for iGaming versus peers and whether the current competitive advantages are durable enough to maintain market leadership over time.

Answer

CEO Peter Jackson asserted that FanDuel is already the iGaming market leader. He attributed this to executing the strategy laid out in 2022, focusing on direct-to-casino customers and achieving product leadership through jackpots, exclusive content, and the rewards club. He stressed that it's still early days with significant potential remaining.

Clark Lampen asked if the current U.S. guidance allows for more aggressive customer acquisition if attractive opportunities arise. He also inquired about the capital return philosophy, specifically balancing M&A opportunities like MaxBet against shareholder returns.

Answer

CEO Peter Jackson reiterated the strategy of acquiring all customers who meet their return criteria, unconstrained by specific EBITDA targets, to build the most valuable business. CFO Paul Edgecliffe-Johnson outlined capital priorities as: 1) organic investment, 2) strategic M&A for 'local heroes', and 3) shareholder returns, noting future capacity for all three as EBITDA grows.

Clark Lampen from BTIG asked if the U.S. exit would accelerate expansion plans in Europe or Africa. He also inquired about customer retention and engagement patterns during the recent period between major football seasons, specifically in July and early August.

Answer

CEO Neal Menashe clarified that the U.S. exit primarily frees up development resources for the 'rest of world' platform (Canada, Europe, etc.), which is separate from the Africa platform and its expansion plans. He noted that customer engagement was surprisingly strong in July, boosted by the Club World Cup, which helped bridge the gap between traditional sports seasons and maintain activity alongside the casino business.

Clark Lampen asked about the profile of new customers expected on the self-serve platform, the potential margin impact from referral incentives, and the timeline for expanding supply sources beyond the gaming ecosystem.

Answer

Co-Founder, CEO & Chairperson Adam Foroughi explained that the goal is to serve businesses of all sizes and types, so the customer profile will become much more varied. He does not expect referral costs to materially impact margins. Regarding supply, he stated that expansion into new sources like social, music, and news apps is not 'years down the road' and will be pursued quickly if demand from new advertisers grows as anticipated.

Clark Lampen from BTIG asked about the profile of customers expected to join through the self-serve launch, the potential impact of the referral program on margins, and the long-term strategy for expanding supply sources beyond the gaming ecosystem.

Answer

CEO Adam Foroughi explained the goal is to enable any business of any size to use the platform, moving beyond previous GMV constraints. He doesn't expect the referral program to impact margins, as invitations are a perk. He also noted that expanding supply to non-gaming apps and websites is a near-term initiative, not years away, once demand from new advertisers is established.

Clark Lampen followed up on the Rest of World performance, asking for the cause of the pause in marketing spend and whether it was transient. He also inquired about the customer distribution for the growing MTS business, specifically if it skewed towards international or U.S. markets.

Answer

CFO Craig Felenstein reiterated that the advertising business can be choppy based on client spending cycles but expects nice momentum in the back half of the year. CEO Carsten Koerl described the MTS new client pipeline as diversified globally, not fixed to one location, noting that while Brazil is a contributor, growth is seen "all over the place."

Clark Lampen of BTIG asked if legacy products like ironSource experienced pressure in Q1 and if this is anticipated to increase as resources shift to Vector. He also inquired about how the data flow for Vector will improve over time and whether Unity is revisiting concepts like 'cross stats' to leverage its platform data.

Answer

CEO Matthew Bromberg confirmed that the aggressive shift of resources to Vector does impact legacy ad business and that some internal share movement is expected. He stressed the more important goal is taking external share. On data, Bromberg outlined a key long-term strategy to leverage consumer insights from across the platform for both Create and Grow customers, starting in H2 2025.