Clark Lampen

Clark Lampen sought clarification on the Q2 rollout of the sportsbook loyalty program and inquired about the immediate impact of the iGaming rewards program on revenue, promotional leverage, and customer saliency.

Answer

CEO Peter Jackson confirmed the Q2 launch for the sportsbook loyalty program. He highlighted the iGaming rewards program's success in driving record market share in Q4, noting improved customer saliency for rewards and anticipating similar benefits for the sportsbook, including increased wallet share.

Clark Lampen sought clarification on the Q2 rollout of the sportsbook loyalty program and inquired about the immediate impact of the iGaming loyalty program on revenue, promotional spend, and overall leverage.

Answer

CEO Peter Jackson confirmed the sportsbook loyalty program launch in Q2 and highlighted the iGaming rewards program's success in driving market share to a record 28% in Q4. He noted that the loyalty program improves customer saliency around rewards, which he expects to translate to the sportsbook, helping to drive increases in wallet share.

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 asked about the D2C transition for June's Journey and other titles, inquiring if any games lack a meaningful D2C presence. He also questioned whether D2C revenue is solely from browser environments or includes link-outs from app store versions. Additionally, he asked for directional guidance on 2026 marketing spend and flexibility to invest in high-ROI titles like Disney Solitaire.

Answer

Craig Abrahams, President and Chief Financial Officer, confirmed broad D2C penetration across the portfolio, including casual titles, and the use of various channels like mobile link-outs. He declined specific 2026 marketing guidance but noted SuperPlay's marketing spend is constrained by earn-out targets (5-10% EBITDA margin), implying moderation to achieve those margins.

Clark Lampen asked about specific titles in Playtika's portfolio that currently lack a significant Direct-to-Consumer (D2C) presence or are in nascent stages, similar to June's Journey. He also inquired about the budgeted marketing spend for 2026 compared to 2025 and the company's flexibility to increase investment in high-performing titles like Disney Solitaire if returns warrant it.

Answer

President and CFO Craig Abrahams confirmed broad D2C penetration across the portfolio, with casual titles showing strong growth through various channels, including mobile link-outs. While not providing specific 2026 marketing guidance, he noted SuperPlay's earn-out constraints, which require balancing aggressive growth with achieving target EBITDA margins of 5% or greater.

Clark Lampen followed up on Nigeria, asking about broader African market expansion plans mentioned in September, specifically which of the four targeted markets are included in 2026 guidance and which are most actionable. He also asked for a quantification of the World Cup's potential impact on the sports business handle in 2026.

Answer

CFO Alinda van Wyk stated that only Namibia is included in the 2026 guidance for African expansion, emphasizing a disciplined rollout. CEO Neal Menashe added that the Jackpot City brand is expanding into more African casino markets. Regarding the World Cup, Neal Menashe reiterated low single-digit tailwinds across the business, noting 40% of operating countries are participating and anticipating increased engagement from the expanded format. Alinda van Wyk highlighted that sports represent 20% of the business, with casino making up 80%, providing stability.

Clark Lampen followed up on African market expansion, asking which of the four previously targeted markets are included in the 2026 guidance and which seem most actionable in the near term. He also asked if it was possible to quantify the potential handle benefit for the sports business from the expanded World Cup tournament in 2026.

Answer

CFO Alinda van Wyk confirmed that only Namibia is included in the 2026 guidance for African expansion, emphasizing a disciplined strategic rollout. CEO Neal Menashe added that Super Group is also rolling out its Jackpot City brand into more African markets and operationalizing existing teams. Regarding the World Cup, Neal Menashe stated that the guidance includes low single-digit World Cup tailwinds across the 40% of operating countries participating, highlighting the expanded format, longer tournament, and focus on long-term customer engagement.

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 if DraftKings has observed any uptick in promotional intensity from smaller-scale operators in the core sportsbook market and if this is reflected in the guidance. He also inquired about the flexibility in 2026 to lean into marketing for core customers (OSB/iGaming) if LTVs and response rates are better, even with increased use of national inventory for prediction markets.

Answer

Jason Robins (Co-Founder and CEO, DraftKings) reiterated that the competitive environment remains 'very rational' and there has been no surge in promotional activity in recent years. He confirmed the conservative guidance includes some cushion, but not due to an expected uptick from smaller operators. Alan Ellingson (CFO, DraftKings) affirmed absolute flexibility to increase marketing spend for core customers if LTVs are favorable, emphasizing DraftKings' commitment to spending appropriately for long-term value.

Clark Lampen asked about any uptick in promotional intensity from smaller-scale operators in the core Sportsbook market and if the guidance reflects less promotional leverage. He also inquired about the flexibility to lean into core customer marketing in 2026, even with increased national inventory use for prediction markets.

Answer

Co-Founder and CEO Jason Robins stated that the competitive environment remains rational with no surge in promotional activity, and the guidance includes cushion. CFO Alan Ellingson confirmed flexibility to adjust marketing spend for core customers based on LTVs and response rates, emphasizing a commitment to long-term value.

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 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 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 asked about the scale of AppLovin's bidding (11B+), the necessity for others to replicate it, and the impact of new prospecting campaigns on advertiser behavior.

Answer

Co-Founder, CEO, and Chairperson Adam Foroughi emphasized that AppLovin's cutting-edge model is specifically tuned for its ecosystem, with customers already locked in, and sometimes bids thousands of dollars CPM for high-value users, reflecting its sophistication and data advantage. He highlighted the prospecting campaigns product, launched in Q4, which allows advertisers to optimize for new customers (using historical purchase data) rather than just universal campaigns, leading to quick adoption and more new customers.

Clark Lampen asked about the scale of AppLovin's bidding and whether it needs to be replicated for probabilistic bidding efficacy, including capital constraints. He also inquired about the impact of the 'Prospecting Campaigns' product launch on advertiser behavior.

Answer

Adam Foroughi emphasized that AppLovin's model is built for its ecosystem with gaming UA dollars, and its high-value user bids are not easily replicated, stressing AppLovin's continuous innovation and strong leadership. He explained that Prospecting Campaigns, launched in Q4, allows advertisers to target new customers using historical purchase data, leading to fantastic results and quick adoption by addressing the need for more targeted campaigns.

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 asked about Unity's pricing strategy for Create in a future with tens of millions more creators due to AI, exploring potential for more product tiers and the impact of the commerce business on pricing competitiveness. He also inquired about the derivative consequences of ironSource headwinds drawing to a close on direct costs of operation for ad networks and other enterprise segments, and what's baked into guidance.

Answer

CEO Matthew Samuel Bromberg stated that AI-driven accessibility will create opportunities to monetize the 90% of non-paying users through value-added services. He emphasized Unity's flexibility on business models beyond seat-based SaaS, leveraging commerce, AI enhancements, and advertising, noting the advertising business's larger size allows for fundamental shifts. CFO Jarrod Yahes explained that displacing commoditized ironSource revenue with differentiated Vector revenue will lead to business simplification, streamlining, higher margins, and scalability, reflected in the 2026 EBITDA margin expansion guidance.

Clark Lampen explored the potential end state of AI advancements, specifically regarding pricing models for a much larger creator base, including the possibility of more product tiers or leveraging the commerce business for pricing competitiveness. He also asked about the derivative consequences of ironSource headwinds on direct operating costs and what's factored into guidance.

Answer

Matthew Samuel Bromberg (CEO, Unity Software) stated that greater AI-driven accessibility will open monetization opportunities for non-paying users through value-added services and expand the addressable market. He emphasized Unity's flexibility on business models beyond seat-based SaaS, leveraging commerce and advertising for high-value offerings. Jarrod Yahes (CFO, Unity Software) added that displacing lower-margin ironSource revenue with higher-margin Vector revenue will simplify and streamline the business, leading to higher gross margins, greater operating leverage, and improved EBITDA margins in 2026.

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.

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 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 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 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 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."