Douglas Anmuth

Douglas Anmuth inquired about the drivers behind Chewy's strong active customer growth in Q3, the outlook for Q4 and 2026, including industry health, and how 2026 investment levels compare to 2025.

Answer

Sumit Singh, CEO of Chewy, attributed active customer growth to stronger gross adds (higher direct traffic, mobile app engagement, improved conversion, SEO) and better retention. He noted Q4 moderation is comp-driven but current momentum is strong. For 2026, he expects continued share-taking and more structural, durable investments, self-funded by improved business performance and scaling fulfillment, customer service, and marketing efficiency.

Douglas Anmuth inquired about the drivers behind the strong active customer growth in Q3, the outlook for active customers in Q4 and 2026, and the health of the industry. He also asked for a framework on investment levels in 2026 compared to 2025.

Answer

Sumit Singh (CEO, Chewy) attributed Q3 active customer growth to improved gross adds (higher direct traffic, mobile app engagement, better conversion, double-digit SEO gains) and stronger retention across premium consumables, healthcare, and hardgoods. For Q4, he noted implied moderation due to tough year-over-year comps but mentioned current momentum is ahead of forecast. For 2026, he expects NSPAC durability. Regarding investments, he clarified that 2025, despite being an 'investment year,' saw strong growth and margin expansion. He stated 2026 would see more structural, durable investments, pulling back on temporary ones, with the business performing better as fulfillment and customer service scale.

Doug Anmuth asked about the investments required in the second half of fiscal year 2025 and into 2026 to lean into growth, and how Chewy is promoting and increasing awareness of new offerings like Chewy+ and Get Real.

Answer

CEO Sumit Singh explained that Chewy+ is primarily marketed to existing members with minimal incremental marketing spend, leveraging onsite experiences. For Get Real, the strategy focuses on product quality, competitive pricing, curated site experience, and strong CRM, with current marketing paired with acquisition offers. He highlighted that Get Real customers are high NESPAC and high gross profit per unit, with CapEx for fresh and frozen capacity already secured through 2028.

Douglas Anmuth asked about Chewy's planned investments for growth in the second half of 2025 and into 2026, specifically requesting more details on these initiatives. He also inquired about the strategies for promoting and increasing awareness of new offerings like Chewy Plus and Get Real.

Answer

Sumit Singh, CEO & Director, Chewy, explained that Chewy Plus and Get Real are primarily promoted to existing members through onsite and funnel shopping experiences, with no incremental external marketing spend. He highlighted Get Real's focus on product quality, price competitiveness, and a curated site experience, noting that CapEx for fresh/frozen capacity is secured through 2028. He emphasized that these are high-margin, high-sales verticals driving stronger NESPAC consolidation.

Douglas Anmuth asked about Chewy's planned investments for growth in the second half of 2025 and into 2026, specifically inquiring about the promotional strategies and awareness building for new offerings like Chewy Plus and Get Real.

Answer

CEO Sumit Singh explained that Chewy Plus is primarily marketed to existing members with no incremental external marketing spend, leveraging onsite experiences for conversion. For Get Real, the strategy focuses on Chewy's existing large audience, emphasizing product quality, competitive pricing, and a curated site experience, supported by strong CRM. He noted that CapEx for fresh and frozen capacity is already secured through 2028, making these high-margin, high-sales verticals. Singh highlighted that these investments are strategic for driving stronger NESPAC consolidation.

Douglas Anmuth inquired about the current level of fulfillment automation and the path to reaching the 70-80% target, as well as the new opportunities unlocked by the completed first-party sponsored ads platform migration.

Answer

Executive David Reeder and CEO Sumit Singh clarified that over 50% of volume now flows through automated facilities, with plans to ramp up newer facilities to progress towards the long-term target. They detailed that the new proprietary sponsored ads software, which has now launched, enables new formats like video, off-site advertising, and a more seamless self-service experience for vendors, which are key to reaching the long-term goal of sponsored ads representing 3% of net sales.

Douglas Anmuth asked about the key learnings from the Chewy Vet Care clinic rollout in 2024 and how these insights are shaping 2025 expansion plans. He also requested an update on the progress of fulfillment center automation.

Answer

Executive David Reeder reported that the vet clinics are showing promising results, including high operational utilization, strong customer engagement, and significant cross-category shopping from new-to-Chewy customers. CEO Sumit Singh stated that on the automation front, just under half of the company's volume now passes through automated facilities, which is driving significant OpEx leverage and efficiency gains, contributing to strong execution during peak periods.

Douglas Anmuth of JPMorgan Chase & Co. asked about the continuation of positive trends in pet household formation and whether fiscal 2025 could see more balanced growth between active customers and Net Sales Per Active Customer (NSPAC).

Answer

CEO Sumit Singh confirmed that positive household formation trends are continuing, with pet adoptions up and relinquishments down, though absolute levels are still recovering. Regarding fiscal 2025, Singh expressed hope for a return to more balanced growth, attributing the recent sequential increase in net adds more to Chewy's internal initiatives, such as improved customer retention and reactivation, rather than a significant macroeconomic turnaround.

Douglas Anmuth of JPMorgan Chase & Co. asked about the evolution of the new customer journey into the Autoship program, which now represents 82% of sales, and inquired about the drivers of the strong 12% growth in the hardgoods category.

Answer

CEO Sumit Singh explained that Autoship's growth from 66% to 82% of sales is due to a focus on assortment, convenience, and a personalized digital experience. Regarding hardgoods, both he and CFO David Reeder attributed the 12% growth to adding over 150 new brands, reducing SKU onboarding time by 40-50%, and improving product discoverability, resulting in broad-based strength across subcategories.

Douglas Anmuth from JPMorgan Chase & Co. followed up on Autoship, asking how the customer journey to becoming an Autoship member has evolved. He also asked about the drivers behind the 12% growth in the hardgoods category.

Answer

CEO Sumit Singh attributed Autoship's success to strong retail fundamentals like assortment and availability, combined with a personalized digital experience. For hardgoods, he cited assortment freshness (over 150 new brands), a 40-50% reduction in SKU onboarding time, and improved discoverability. CFO David Reeder confirmed that growth was broad-based across nearly all hardgoods subcategories.

Douglas Anmuth from JPMorgan Chase & Co. asked about the evolution of the new customer journey into the Autoship program, which now represents 82% of sales, and also inquired about the drivers behind the 12% growth in the hardgoods category.

Answer

CEO Sumit Singh attributed Autoship's success to retail fundamentals like assortment and in-stock levels, combined with a personalized digital experience. For hardgoods, he cited assortment freshness (150+ new brands), faster SKU onboarding, and improved discoverability. CFO David Reeder confirmed the growth was broad-based across nearly all hardgoods subcategories.

Douglas Anmuth from JPMorgan Chase & Co. asked about the evolution of the new customer journey into Autoship as its penetration grew to 82% and also inquired about the drivers behind the strong 12% growth in the hardgoods category.

Answer

CEO Sumit Singh attributed Autoship's success to retail fundamentals like assortment and in-stock levels combined with a superior digital experience. For hardgoods, he cited a refresh of assortment with over 150 new brands and a 40-50% reduction in SKU onboarding time. CFO David Reeder confirmed that growth was broad-based across almost all hardgoods subcategories, reflecting strong execution.

Douglas Anmuth from JPMorgan Chase & Co. asked about the evolution of the new customer journey into Autoship as its penetration grew to 82%, and also inquired about the drivers behind the 12% growth in the hardgoods category.

Answer

CEO Sumit Singh attributed Autoship's success to retail fundamentals like assortment and availability, combined with a superior digital experience. For hardgoods, he pointed to assortment freshness, with over 150 new brands added, and a 40-50% reduction in SKU onboarding time. CFO David Reeder confirmed the growth was broad-based across nearly all hardgoods subcategories.

Douglas Anmuth of JPMorgan Chase & Co. asked about the evolution of the customer journey into the Autoship program and the key drivers behind the 12% growth in the hardgoods category.

Answer

CEO Sumit Singh attributed the growth of Autoship, now 82% of sales, to fundamental retail execution in assortment, availability, and a superior digital experience. For hardgoods, he cited a refreshed assortment with over 150 new brands and a 40-50% reduction in SKU onboarding time. CFO David Reeder confirmed that growth was broad-based across nearly all hardgoods subcategories.

Douglas Anmuth asked why Airbnb was absent from ChatGPT's app integration launch, unlike other major travel players, and how this decision aligns with Airbnb's own AI-powered search development.

Answer

Airbnb CEO Brian Chesky stated the ChatGPT integration "wasn't ready," emphasizing principles like custom integrations, avoiding commodity positioning, and preserving Airbnb's unique identity. He noted a similar rationale for not integrating with Google Hotel Finder but remains open to future, well-developed chatbot integrations.

Douglas Anmuth asked why Airbnb was absent from ChatGPT's app integration launch, despite building its own AI-powered search and other major travel players participating.

Answer

Brian Chesky, CEO of Airbnb, explained that the integration was not deemed ready, citing concerns about discoverability, the desire to avoid being positioned as a commodity data layer, and the need for custom integrations that reflect Airbnb's unique features like personalized results and messaging. He emphasized that Airbnb is not opposed to future chatbot integrations but prioritizes a well-developed, non-commodity presentation.

Douglas Anmuth asked about the launch of Airbnb Services, focusing on supply and demand priorities, and how major event partnerships contribute to bookings and brand awareness.

Answer

CEO Brian Chesky explained that Services is in an early stage, with a focus on building the catalog and attach rates in test markets like Los Angeles. Regarding events, he described them as strategic for building supply (e.g., +50% listings in Paris for the Olympics), strengthening policymaker relationships (e.g., Italy/Olympics), and enhancing brand trust through associations with FIFA and the Tour de France.

An analyst on behalf of Doug Anmuth asked how Airbnb's user experience will evolve as it expands beyond accommodations and how the company views the long-term sustainability of its margins as these new ventures scale.

Answer

CEO Brian Chesky emphasized that Airbnb's 'superpower' is design and making complex processes easy, which will be applied to new offerings. He also highlighted the role of AI in improving customer service, noting a new AI agent has already reduced contacts with human agents by 15%. CFO Ellie Mertz added that the core business has incremental efficiencies to fund growth, and new businesses are expected to have compelling margins over time as they scale.

Douglas Anmuth asked where the Co-host Network is proving most effective and what is driving its higher earnings. He also inquired where management is finding the most traction in managing costs to fund new investments.

Answer

CEO Brian Chesky explained the Co-host Network's success is driven by inviting only top-rated hosts, resulting in higher-quality listings and double the revenue. He noted its expansion from 10 countries to now include Japan and Korea. CFO Ellie Mertz identified incremental efficiencies in variable costs like payment processing and customer service, plus disciplined G&A and marketing spend, as funding sources for new investments.

Douglas Anmuth with JPMorgan Chase & Co. inquired about Snap's go-to-market efforts and product roadmap aimed at unlocking greater spend from mid-sized advertisers.

Answer

CFO Derek Andersen highlighted strong product-market fit for app product, lead gen, and web direct response with SMBs. He detailed product focus on speeding up signals onboarding, simplifying account setup, and improving partner onboarding. He also acknowledged the business development team's role in customer acquisition and stated that investments would continue to accelerate growth in the SMB segment.

Douglas Anmuth of JPMorgan Chase & Co. inquired about the early results of the 'Simple Snapchat' redesign, which has been rolled out to over 25 million users. He asked about any observed differences across user geographies and how the company is managing potential disruption for users and advertisers during the transition.

Answer

CEO Evan Spiegel responded that testing results are encouraging, particularly with increased content active days among more casual users. However, he highlighted two key challenges being addressed: migrating story ad demand to new formats like Sponsored Snaps and recapturing engagement from a cohort of power users who preferred the previous tile-based layout. Spiegel confirmed the team is actively developing solutions for these issues.

Doug Anmuth asked about Uber's strategy to increase cross-platform usage, particularly for Uber One, and sought details on the recently announced NVIDIA partnership, including the timeline for deploying 100,000 autonomous vehicles and fleet ownership.

Answer

CEO Dara Khosrowshahi explained that only 20% of consumers in markets with both mobility and delivery are cross-platform users, highlighting specific programs like top tabs, personalized upsells, and membership to drive engagement. Regarding AVs, he expressed excitement about the NVIDIA Hyperion reference architecture for L4-ready autonomous vehicles, mentioning an initial partnership with Stellantis for 5,000 vehicles. He noted that Uber might use its balance sheet early for fleet ownership, but expects financialized yield vehicles to emerge over time.

Doug Anmuth asked about the strategy to increase Uber One penetration and cross-platform usage, details on the NVIDIA partnership, the timeline for deploying 100,000 autonomous vehicles (AVs), and the ownership model for these AV fleets.

Answer

CEO Dara Khosrowshahi outlined strategies to boost cross-platform engagement, including in-app features, personalized upsells, and membership benefits. He elaborated on the NVIDIA partnership's role in L4-ready autonomous vehicles, envisioning a safer and more efficient future ecosystem. Khosrowshahi also discussed Uber's potential to use its balance sheet for early fleet ownership, anticipating eventual financialization of these assets.

Douglas Anmuth asked about consumer response to decelerating price growth in Mobility due to moderating insurance costs and the basis for confidence in a Q3 trips acceleration in the U.S. He also sought more detail on the timing and execution strategy for the new $20 billion share buyback authorization.

Answer

CEO Dara Khosrowshahi noted a positive consumer response to lower prices, explaining it has both an immediate conversion benefit and a delayed effect of increasing future app usage. This trend was observed in July, supporting the Q3 outlook. CFO Prashanth Mahendra-Rajah clarified the new $20 billion authorization is additive to the ~$3 billion remaining on the previous one. He stated Uber has been allocating about 50% of free cash flow to buybacks, expects to continue this multi-year plan, and noted that the company's share count is now declining.

Douglas Anmuth asked about the pricing elasticity Uber is observing in its Mobility segment and the real-world utilization rates of Waymo's autonomous vehicles (AVs) in Austin.

Answer

CEO Dara Khosrowshahi explained that mobility pricing elasticity remains consistent with historical trends, with a focus on how stable prices affect long-term user habits. He highlighted that Waymo AVs in Austin show exceptionally high utilization, with the average Waymo vehicle being busier than 99% of human drivers in the city, signaling strong early results for the partnership.

Doug Anmuth of JPMorgan Chase & Co. followed up on AV commercialization, asking about Uber's experience with Waymo in driving utilization, and questioned the sustainability of moderating insurance cost increases through 2025.

Answer

CEO Dara Khosrowshahi noted that while AV deployments are small, early experience with Waymo shows Uber's network drives significantly higher utilization and high customer opt-in rates. CFO Prashanth Mahendra-Rajah stated that insurance cost pressures are easing, with U.S. Mobility insurance costs per trip expected to be in the high single digits in 2025. This improvement is driven by tech innovations like the driver insights dashboard and progress on state-level regulatory reform.

Douglas Anmuth questioned Uber's goals for autonomous vehicle (AV) fleet operations and asked if the company was observing any notable impact from Waymo's presence in San Francisco.

Answer

CEO Dara Khosrowshahi explained that Uber is extending its existing fleet operations expertise, which currently accounts for 15% of global mobility supply hours, to the AV space. The goal is to provide cost-effective local logistics like charging and cleaning for AV partners. In San Francisco, he noted Waymo has achieved a notable category position in its operating areas but has not had a discernible impact on Uber's consumer volume, frequency, or loyalty, adding that Uber is focused on its own partnership with Waymo in other cities.

Doug Anmuth asked for details on the architecture and differentiation of Project Rainier, its potential expansion beyond Anthropic, and how AWS plans to replicate this with Trainium 3 chips.

Answer

CEO Andy Jassy explained that Project Rainier's appeal for Anthropic stems from the Trainium 2 chip's performance and price-performance, combined with AWS's ability to build and manage a massive cluster of 500,000-plus chips. He noted that while Project Rainier is specific to Anthropic, many other customers are interested in large Trainium clusters, which AWS aims to facilitate with Trainium 3.

Doug Anmuth asked for details on the architecture and differentiation of Project Rainier, its implications for customers and AWS, and whether it is expected to expand beyond Anthropic, including how it might be replicated with Trainium3 chips.

Answer

CEO Andy Jassy explained that Project Rainier's appeal to Anthropic stems from the Trainium2 chip's performance and price-performance, combined with AWS's unique infrastructure capabilities to build and manage a massive cluster of 500,000+ chips. While Project Rainier is specific to Anthropic, Jassy noted that many other customers are interested in deploying large Trainium clusters, which AWS hopes to facilitate with Trainium3.

Douglas Anmuth of JPMorgan Chase & Co. asked for more granularity on how tariff costs are being absorbed and questioned if the AWS growth gap versus peers is due to demand or supply constraints.

Answer

CEO Andy Jassy explained that while future tariff impacts are unknown, Amazon has not yet seen diminished demand or significant price hikes in the first half of the year. Regarding AWS, Jassy attributed growth rate differences to AWS's much larger base and highlighted its superior operational performance and security. He also confirmed that AWS currently has more demand than supply capacity, which is a constraint on revenue.

Douglas Anmuth asked for more granularity on how tariff costs are being absorbed across the supply chain and questioned if the AWS growth gap versus peers is due to customer demand, infrastructure supply, or both.

Answer

CEO Andy Jassy addressed both questions. On tariffs, he stated that while the future is uncertain, Amazon has not yet seen diminished demand or broad price increases in the first half of the year. Regarding AWS, he attributed the perceived growth gap to AWS's significantly larger revenue base and emphasized its superior operational performance, security, and functionality, noting that AWS currently has more demand than supply.

Douglas Anmuth asked about the drivers behind the significant increase in AWS margins to nearly 40% and the strategy for shifting user behavior towards the new, more capable Alexa Plus.

Answer

CFO Brian Olsavsky credited strong AWS margins to operational efficiencies like server optimization, custom networking gear, and cost-effective custom silicon like Graviton. CEO Andy Jassy stated that Alexa Plus's ability to perform complex, multi-step actions will naturally drive user adoption through superior experience, leveraging its existing distribution across over 500 million devices.

Douglas Anmuth asked for guidance on normalized AWS margins given their recent volatility and heavy AI investment, and also questioned the impact of reduced shipping volume from UPS on Amazon's logistics.

Answer

CFO Brian Olsavsky addressed AWS margins, stating they will remain 'lumpy' as early-stage AI investments are a short-term headwind, but he expects long-term AI margins to be comparable to the non-AI business. CEO Andy Jassy handled the UPS question, noting that Amazon's own logistics network can handle the volume that UPS, a long-term partner, may have walked away from due to its lower-margin nature for them.

Douglas Anmuth asked about the primary drivers behind the 38% AWS operating margin, its sustainability, and for an early outlook on 2025 capital expenditures.

Answer

CFO Brian Olsavsky attributed the strong AWS margin to accelerating revenue, cost controls, and a 200 basis point benefit from extending the useful life of servers. CEO Andy Jassy projected that 2025 CapEx would exceed 2024's expected $75 billion, driven primarily by investments to support the rapid, triple-digit growth of the generative AI business within AWS.

Douglas Anmuth (JPMorgan Chase & Co.) asked about Meta's strategy for balancing significant CapEx and expense growth in 2026, driven by superintelligence investments, with core business growth, and the anticipated impact on earnings and free cash flow. He also inquired about any specific targets for cash on hand or net cash.

Answer

CFO Susan Li stated that Meta is in the early stages of its 2026 budget, prioritizing compute capacity for AI success, and planning for flexibility through 2028. CEO Mark Zuckerberg added that Meta consistently sees demand for more compute than it builds, especially for profitable core business applications, suggesting that larger investments are likely profitable. He emphasized that excess compute could be absorbed by the core business or potentially external services, with the worst-case scenario being pre-building capacity for a few years.

Doug Anmuth inquired about Meta's strategy for triangulating CapEx dollar growth and faster expense growth in 2026 with core business growth, its impact on earnings and free cash flow, and any targets for cash on hand.

Answer

CFO Susan Li stated that the 2026 budget is in early stages, prioritizing compute capacity for AI success, and aiming for flexibility in 2027-2028. CEO Mark Zuckerberg added that past patterns show demand for compute often exceeds aggressive assumptions, suggesting profitability for larger investments in AI research and core business improvements. He noted that excess compute could be absorbed profitably or potentially offered externally.

Douglas Anmuth asked how Meta's open-source AI strategy is evolving with the pursuit of superintelligence and questioned how the significant 2026 CapEx would be financed.

Answer

CEO Mark Zuckerberg stated that the open-source strategy remains consistent: some models will be shared, but not all, especially as they become larger or approach superintelligence. CFO Susan Li confirmed that while Meta will self-finance a large portion of its CapEx, the company is actively exploring co-development partnerships with external financial partners for data centers.

Douglas Anmuth from JPMorgan Chase & Co. questioned if Meta's stance on open-sourcing AI has changed with its pursuit of superintelligence and massive capital investments. He also asked about plans for financing the significant 2026 CapEx, including the possibility of partnerships.

Answer

CEO Mark Zuckerberg stated that Meta's open-source philosophy hasn't fundamentally changed; they will continue to release some models while keeping others proprietary, especially as models become extremely large or approach superintelligence, raising safety concerns. CFO Susan Li confirmed that while Meta expects to self-finance a large share of its CapEx, the company is actively exploring working with financial partners to co-develop data centers to provide financing flexibility.

Douglas Anmuth from JPMorgan Chase & Co. asked how Meta's strategy on open-sourcing AI is evolving as it pursues superintelligence and seeks returns on its significant infrastructure investments. He also questioned if the large 2026 CapEx would be self-financed or involve partnerships.

Answer

CEO Mark Zuckerberg stated that the open-source philosophy remains consistent: Meta will continue to release some leading models but not all, especially as models become extremely large or approach superintelligence, raising new safety concerns. CFO Susan Li confirmed that while Meta expects to self-finance a large portion of its CapEx, the company is actively exploring co-development partnerships with financial partners for data center projects.

Douglas Anmuth sought clarification on the increased CapEx guidance, asking for a breakdown between additional data center investments and higher hardware costs, and inquired about the company's strategy regarding partnering to share AI infrastructure costs.

Answer

CFO Susan Li explained the increased CapEx reflects both flexing the data center build strategy to bring capacity online faster and higher expected hardware costs due to supply chain uncertainty. On partnerships, she stated that while partners like AWS and Azure help host Llama, Meta funds the core infrastructure for training its models and does not expect that to change.

Douglas Anmuth of JPMorgan Chase & Co. inquired about the impact of competitors like DeepSeek leveraging open-source models to advance quickly, and asked for details on the composition of the 2025 CapEx budget and its allocation between training and inference.

Answer

CEO Mark Zuckerberg acknowledged learning from competitors' advances but reiterated that investing heavily in infrastructure remains a strategic advantage, especially for serving billions of users. CFO Susan Li detailed that the 2025 CapEx growth will be driven by servers, data centers, and networking to support both generative AI and core business needs. She noted that while the majority of CapEx is for the core business, the infrastructure is often flexible and can support various workloads.

Douglas Anmuth followed up on Meta AI, asking how use cases will expand with the introduction of agents. He also questioned the significant Q4 CapEx increase, asking if it represents a new run rate for 2025.

Answer

CEO Mark Zuckerberg hinted at significant new capabilities with Llama 4 next year but deferred specifics. He expects AI Studio and business agents to become more widespread. CFO Susan Li clarified the Q4 CapEx step-up is due to server spend and timing of payments for Q3 deliveries, cautioning against extrapolating a single quarter's lumpy figure but confirming significant growth is expected in 2025.

Doug Anmuth asked about Booking Holdings' strategy and early observations regarding its app integration with OpenAI, and how the company anticipates the economic impact if booking traffic shifts from direct channels or Google to AI platforms.

Answer

Glenn Fogel, CEO and President, acknowledged the early stage of OpenAI integration but expressed satisfaction with being among the first wave of apps, emphasizing Booking Holdings' value proposition. He stated confidence that while initial discovery might shift, the company's role in transaction fulfillment, value optimization, payments, and regulatory compliance remains crucial due to the travel business's complexity. He highlighted the connected trip vision and Genius loyalty program as key differentiators. Ewout Steenbergen, EVP and CFO, noted continued year-over-year volume growth from traditional search, while leads from large language models are small but growing. He mentioned early positive signals regarding faster search, better conversion, lower cancellation rates, and higher customer satisfaction from AI tools.

Doug Anmuth inquired about Booking Holdings' strategy and early observations regarding its OpenAI app integration, and the potential economic impact if bookings were to shift from direct traffic or Google.

Answer

CEO and President Glenn Fogel stated it's very early to assess the OpenAI integration but expressed confidence in Booking Holdings' ability to provide essential transaction fulfillment, value, and complex travel services regardless of where inspiration begins. He emphasized the connected trip vision, Genius loyalty program, and proprietary data as key differentiators. EVP and CFO Ewout Steenbergen noted continued volume growth from traditional search, small but growing leads from large language models, and early positive signals on faster search, better conversion, lower cancellation rates, and higher customer satisfaction.

Douglas Anmuth from JPMorgan Chase & Co. questioned if factors beyond tough comps and macro headwinds were tempering the Q3 outlook, and asked about the deceleration in alternative accommodation growth.

Answer

CFO Ewout Steenbergen attributed the Q3 guidance to very high comps from August and September 2024 but highlighted the upgraded full-year guidance. On alternative accommodations, he noted that growth at 10% still outpaces traditional lodging and the business is maturing with 8.4 million listings. He stressed the company's focus is on overall growth, serving traveler preferences for any accommodation type.

Douglas Anmuth of JPMorgan Chase & Co. questioned if factors beyond tough comps and macro uncertainty were tempering the Q3 outlook, and whether the deceleration in alternative accommodation growth was an industry-wide or company-specific trend.

Answer

CFO Ewout Steenbergen confirmed the Q3 guidance reflects steady demand through July but faces very high comps from August and September 2024, emphasizing the strong, upgraded full-year guidance. On alternative accommodations, he stated that growth at 10% still outpaces traditional lodging and the segment is reaching maturity with 8.4 million listings, with the company's focus remaining on overall growth across all accommodation types.

Douglas Anmuth asked about Booking's confidence in the value of travel-specific AI agents versus broader platforms and how the company benefits from its geographic diversification amid shifting travel patterns.

Answer

CEO Glenn Fogel expressed confidence in a dual approach, partnering with hyperscalers like OpenAI while also developing proprietary, data-rich AI agents to drive direct traffic. CFO Ewout Steenbergen highlighted that while some travel corridors are shifting, the company's global diversification allows it to capture demand redirected to other regions, resulting in stable overall demand. He noted that booking windows are expanding and on-the-books data for the summer looks healthy.

Doug Anmuth asked about the evolution of Netflix's thinking regarding its ability to leverage AI over the past couple of years.

Answer

Co-CEO Greg Peters stated that Netflix's thinking on AI hasn't fundamentally changed over a decade, leveraging its deep technology DNA, data assets, and scaled products. He sees generative AI providing more capable tools to improve productivity, innovation velocity, and deliver better results for members, creators, and partners. He noted that most applications involve integrating market solutions, with targeted investments in better product experiences, content production, and advertising.

Doug Anmuth asked how Netflix's perspective on leveraging AI has evolved over the past couple of years.

Answer

Co-CEO Greg Peters stated that Netflix's thinking on AI hasn't changed over a decade and a half, having a long history with machine learning and AI solutions, deep tech DNA, significant data assets, and scaled products/processes. He sees opportunities to leverage new technical capabilities, specifically generative AI, across the business for more capable tools, improved productivity, faster innovation, and better results for members, creators, and partners. Most cases involve integrating market solutions, but targeted investments are made in better product experiences, content production, and advertising, often using foundational models from others.

Doug Anmuth of JPMorgan Chase & Co. asked how Netflix views its business as being 'hit-driven' given its strong upcoming slate and whether the company is confident that content momentum can continue into 2026.

Answer

Co-CEO Ted Sarandos responded that while big hits can accelerate growth, the core strategy is to maintain a 'steady drumbeat' of beloved shows and films. He emphasized that no single title drives more than 1% of viewing. To demonstrate confidence in future momentum, he provided an extensive list of returning and new series and films slated for the remainder of 2025 and throughout 2026, spanning global productions and various genres.

Doug Anmuth of JPMorgan Chase & Co. asked whether the business is becoming 'hit-driven' and about confidence in maintaining content momentum into 2026.

Answer

Co-CEO Ted Sarandos responded that while big hits accelerate growth, the core strategy is a 'steady drumbeat' of diverse, quality content at scale. To demonstrate confidence in future momentum, he provided an extensive list of new and returning series and films slated for the rest of 2025 and into 2026.

Doug Anmuth of JPMorgan Chase & Co. asked how 'hit-driven' the business currently is and about confidence in maintaining content momentum into 2026.

Answer

Co-CEO Ted Sarandos emphasized that while hits accelerate growth, the business relies on a 'steady drumbeat' of diverse content, as no single title drives more than 1% of viewing. He expressed high confidence in future momentum, detailing an extensive slate of returning and new titles for the remainder of 2025 and into 2026.

Douglas Anmuth of JPMorgan Chase & Co. inquired about the performance of the ad-supported plan and the strategic transition to an in-house ad tech stack in 2025.

Answer

Gregory Peters (Co-CEO) detailed the ad plan's success, noting it represented over 55% of sign-ups in Q4 and membership grew about 30% QoQ. He stated that 2025 marks a 'crawl to walk' transition with the rollout of their own ad stack, starting in the U.S. in April. Peters highlighted that this move will offer more buyer flexibility, improve the user experience, and enable enhanced targeting and measurement, positioning Netflix to capture a larger share of the $25B+ CTV ad market.

Douglas Anmuth of JPMorgan Chase & Co. questioned the adoption trends for Pinterest Performance Plus, specifically asking about the impact of recent features like ROAS bidding and audience data integration.

Answer

CEO Bill Ready reported notable early adoption of Performance Plus, especially from mid-market advertisers, with the share of lower-funnel revenue through these campaigns more than doubling since late 2024. He highlighted new Q2 features like Creative Previews and Campaign Customer Groups, which enhance advertiser control and targeting. Ready reiterated that this is a multi-quarter adoption cycle aimed at making the platform more accessible.

Douglas Anmuth from JPMorgan Chase & Co. asked about the adoption of Pinterest Performance Plus, specifically the trends in ROAS bidding and the impact of allowing advertisers to integrate their own audience data.

Answer

CEO Bill Ready stated that Pinterest Performance Plus has seen notable early adoption, especially from mid-market advertisers, with the percentage of lower-funnel revenue flowing through it more than doubling since the end of 2024. He emphasized it's a multi-quarter adoption cycle that is successfully expanding reach beyond the largest retailers.

Douglas Anmuth asked about Pinterest's capital allocation strategy, specifically regarding the Q1 share repurchase and plans for the remaining authorization given the current valuation and macro environment.

Answer

CFO Julia Donnelly stated that the capital allocation framework from the 2023 Investor Day remains unchanged. The priorities are investing in product innovation, considering opportunistic M&A, and using the buyback program to mitigate dilution over a multiyear period, particularly when the stock is at an attractive valuation.

Douglas Anmuth asked about the primary hurdles to closing the gap between value creation (doubling outbound clicks) and value capture (revenue), and also questioned an apparent sequential decline in Rest of World spending.

Answer

CEO Bill Ready identified driving advertiser adoption of privacy-resilient measurement tools (like CAPI) as the key to converting value creation into value capture, noting there is still room to grow coverage. CFO Julia Donnelly corrected the premise on Rest of World, clarifying that the segment is actually seeing good quarter-over-quarter and year-over-year acceleration, driven by new partnerships.

Doug Anmuth's team at JPMorgan Chase & Co. asked for more detail on Brand Expedia's outperformance and whether it was taking share, and questioned the drivers behind the full-year revenue guidance raise versus bookings.

Answer

CEO Ariane Gorin affirmed the belief that Brand Expedia is taking share, driven by its strong value proposition in packages and bundling, which has led to record attach rates. She also cited new supply partners like Southwest and Ryanair as contributing factors. CFO Scott Schenkel clarified that there was no material difference in the ex-FX guidance raise for full-year revenue versus gross bookings.

Douglas Anmuth questioned how Lyft is developing its autonomous vehicle (AV) use case and what key capabilities Lyft and FreeNow offer to AV technology partners like Baidu.

Answer

CEO David Risher positioned AVs as a major Total Addressable Market (TAM) expander, citing 5x industry growth in markets where AVs operate. He outlined Lyft's value proposition for AV partners, which includes providing demand, a marketplace, customer support, and sophisticated fleet management via its FlexDrive subsidiary. For Europe, he emphasized FreeNow's strong regulatory and taxi fleet relationships as a critical differentiator.

Douglas Anmuth questioned the drivers behind lower gross bookings per ride, especially with growth in luxury modes, and asked if there was any change to the guided impact from the end of the Delta partnership.

Answer

CFO Erin Brewer attributed the lower gross bookings per ride to a mix shift, as Lyft sees strong growth in historically lower-priced markets like Canada and certain underpenetrated U.S. cities. Regarding the Delta partnership, she confirmed that while it is still early, the company's long-term outlook for an impact of approximately 1% on rides and 2% on gross bookings remains unchanged.

Douglas Anmuth asked about the quantifiable benefits of reducing Prime Time surge pricing and the key drivers behind the significantly increased 2024 free cash flow guidance.

Answer

CEO David Risher explained that reducing Prime Time by 40% YoY boosts conversion and ride growth, citing Chicago as an example. CFO Erin Brewer attributed the higher FCF guidance to increased ride volume driving higher insurance accruals and lower cash payouts on legacy claims from lower-volume years (2021-2023).

Dae Lee, on behalf of Douglas Anmuth from JPMorgan Chase & Co., asked about the behavioral differences of logged-in users, the strategies to encourage logins, and the basis for management's confidence in achieving double-digit Q3 growth despite a slower start in July.

Answer

MD & CEO Johannes Thomas explained that logged-in users, who now account for 20% of referral revenue, have a 25% higher conversion rate due to features like price alerts and exclusive deals. He expressed confidence in Q3 growth, citing strong double-digit branded traffic and revenue growth in July and August. He attributed July's slower overall growth to a temporary headwind from a non-recurring marketing push by a major player in the prior year, an effect that has since ceased.

On behalf of Doug Anmuth of JPMorgan, Dae Lee asked for the drivers behind the raised full-year guidance, questioning if the upside was from volume or monetization. He also asked about the company's macro assumptions and its advertising strategy in a potential slowdown.

Answer

Executive Robin Harries attributed the guidance raise to the success and scalability of brand marketing investments, evidenced by Q1's 22% revenue growth with stable ROAS. He noted brand spend is still only 50% of 2019 levels, indicating significant room to grow. Executive Johannes Thomas added that trivago can cut ad spend quickly in response to volatility, as shown in the past. He also highlighted that a significant, ongoing increase in site conversion rates is a key driver of marketing efficiency, with returns being reinvested into the brand.

Douglas Anmuth questioned the supply-demand balance for freelancers with AI expertise and asked what factors would be necessary for the Marketplace business to return to growth.

Answer

Micha Kaufman, Founder & CEO, responded that the supply of AI-skilled freelancers is meeting demand, as freelancers are typically early adopters of new technologies. He stated that while the company's AI and upmarket initiatives are expected to return the Marketplace to growth even without macroeconomic improvement, they are not yet ready to incorporate this into guidance due to ongoing uncertainty.

Douglas Anmuth asked for more detail on the long-term vision for AI agents in the Fiverr ecosystem and whether the 2025 guidance implies a return to growth for the core marketplace.

Answer

CEO Micha Kaufman described the AI personal assistant as a first step that will evolve to provide business insights and, through the developer platform, enable complex 'agentic AI' for automated tasks. CFO Ofer Katz clarified that the 2025 guidance assumes flat to slightly down marketplace revenue due to macro factors, with overall growth driven by the Services segment. A macro rebound is the necessary catalyst for marketplace growth.

Douglas Anmuth of JPMorgan Chase & Co. inquired about the early performance and contribution of the recent acquisition, AutoDS. He also asked for more details on the Business Rewards program and its impact on spending and loyalty among larger buyers.

Answer

CEO Micha Kaufman expressed satisfaction with AutoDS, noting it had a better-than-anticipated quarter and contributes to the take rate, though its overall contribution is still small. He explained that loyalty programs, for both buyers and sellers, are designed to increase engagement and retention, which are the key success metrics. These programs reward repeat business, a common behavior on the platform, and are shaping up well.

Douglas Anmuth inquired about the expanded rollout of ads in AI Overviews, particularly for commercial queries, and asked if Google Cloud's growth was constrained by capacity in Q4.

Answer

Executive Philipp Schindler confirmed that AI Overviews are driving higher user satisfaction and that monetization is nearly on par with existing Search. CFO Anat Ashkenazi stated that strong demand for Cloud AI products exceeded available capacity in Q4, impacting the growth rate, and that the company is investing heavily to bring more capacity online.

Douglas Anmuth asked for more detail on the 1.5 billion AI Overviews users and the meaning of 'monetization at the same rate' regarding click-through rates. He also questioned if there were changes to Google's cost-cutting approach and if more cuts were possible in a downturn.

Answer

Philipp Schindler, SVP and Chief Business Officer, reiterated that monetization for AI Overviews remains at approximately the same rate, providing a strong base for innovation, but declined to detail specific metrics. CFO Anat Ashkenazi stated that the company's approach to durably reengineering its cost base has not changed, focusing on continuous efficiency to fund long-term innovation and offset rising depreciation costs from CapEx.

Douglas Anmuth asked about the infrastructure advantages and CapEx efficiencies from Google's proprietary TPUs and their influence on future spending compared to peers.

Answer

CEO Sundar Pichai emphasized Google's comprehensive AI infrastructure, including its sixth-generation TPUs, which provide best-in-class efficiency for both internal use and Cloud customers. CFO Anat Ashkenazi added that Q4 CapEx would be similar to Q3's $13 billion, with an increase expected in 2025, driven by investments in servers (TPUs and GPUs), data centers, and networking.

Douglas Anmuth asked if the Google Services operating margin of roughly 40% is sustainable and questioned the rollout progress, click-through rates, and monetization levels of AI Overviews.

Answer

CFO Ruth Porat stated that while Alphabet expects full-year 2024 operating margin expansion, Q3 margins will be impacted by higher depreciation and hardware launch costs. CEO Sundar Pichai confirmed AI Overviews are rolled out in the U.S. and will scale globally. CBO Philipp Schindler added that they will soon test search and shopping ads directly within AI Overviews.

Doug Anmuth asked how alternative payment options resulting from the Apple court case expand the subscriber funnel and what other opportunities this opens up for Spotify.

Answer

CEO Daniel Ek confirmed the court ruling positively impacted conversions, as Spotify can now directly communicate with users about payment issues and provide a call to action in the app. He explained this opens the door for a third revenue driver, 'a la carte' transactions for items like audiobooks or new digital products, which is a key part of the future strategy alongside subscriptions and ads.

Douglas Anmuth of JPMorgan Chase & Co. asked for more detail on the key drivers that give Spotify confidence in the expected acceleration of MAU growth in the second half of 2025.

Answer

Co-President and CBO Alex Norström explained that strong user engagement, a leading indicator for MAU growth, is being driven by product improvements like Jam and new content experiences in video and audiobooks. CEO Daniel Ek added that the seasonality of the business is a major factor, with the annual Wrapped campaign consistently driving significant outperformance in Q4, which contributes to the confidence in a stronger back half of the year.

Doug Anmuth from JPMorgan Chase & Co. inquired about the long-term potential for subscriber penetration and the key strategies driving the conversion of free monthly active users (MAUs) to paid subscribers.

Answer

Co-President & CBO Alex Norström highlighted the enormous total addressable market across music, podcasts, and audiobooks, indicating plenty of headroom for growth. He noted that the strategies are working, citing high time spent on the platform and a strong conversion funnel, with the sub-to-MAU ratio at roughly 40% globally and over 50% in developed markets.

Doug Anmuth from JPMorgan Chase & Co. asked for clarity on Spotify's strategic priority for 2025, questioning whether the focus would be on growth or profitability.

Answer

CEO Daniel Ek clarified that 2025's story is "growth with profitability," emphasizing that the company can deliver both simultaneously. He highlighted that Spotify will remain profitable while making disciplined investments to seize technological opportunities that add long-term consumer value.

Inquired about how to reconcile the increased CapEx with the ongoing tight compute supply, and asked for details on the drivers of search growth, specifically paid clicks versus pricing.

Answer

Sundar Pichai explained there is a time lag between CapEx investment and new capacity coming online, which is being driven by strong Cloud demand. Philipp Schindler stated that the company does not manage for specific click or CPC metrics but for overall advertiser ROI, and that paid click numbers can be misleading as a standalone metric.

An analyst on behalf of Doug Anmuth questioned how launching global franchises and reformatted content impacts the existing monetization model and gross margins, and asked for specifics on the significant changes being made to the English-language app.

Answer

David Lee, CFO and COO, clarified that collaborating with global franchises like Batman or Godzilla is not new and serves to attract a larger audience, benefiting all content on the platform. He acknowledged a margin difference between discovered amateur content and licensed franchises but stressed that both are vital for growth in new markets like the U.S. Regarding the English app, Lee described the changes as extensive, covering onboarding, home/search tabs, and a 'new & hot' feature, all based on global learnings and local A/B testing that showed a 9% lift in episodes read.

Douglas Anmuth's team asked about the relative impact of the discrete issues affecting the Q1 guide, such as the IP slate delay and political unrest in Korea. They also questioned if the IP delay was impacting organic user traffic.

Answer

David Lee, CFO and COO, clarified that the IP adaptation business is a small part of total revenue, so delays affect quarterly timing but not the long-term outlook. He acknowledged that successful adaptations provide a strong organic lift to the platform but emphasized the business is not dependent on any single hit. He confirmed the impact of these short-term issues is contained within the Q1 guidance.

Douglas Anmuth asked about the strategy to improve the brand and marketing after several years of change, and for insight into the potential puts and takes for fiscal year 2026 free cash flow.

Answer

CEO Peter Stern explained the marketing strategy involves a holistic look at the entire customer lifecycle, using sophisticated measurement to optimize spend across brand, performance marketing, pricing, and partnerships to drive profitable growth. CFO Liz Coddington addressed free cash flow, stating that while she would not provide FY26 guidance, she expects 'meaningful positive free cash flow.' She cautioned that the significant working capital tailwind from inventory optimization in FY25 will be more modest in FY26.

On behalf of Douglas Anmuth, Bryan Smilek asked which go-to-market channels are key for the holiday season and for an update on the state of the connected fitness industry.

Answer

Interim Co-CEO Chris Bruzzo highlighted a disciplined holiday strategy focused on member referrals, targeted marketing, and new third-party relationships like Costco, with less media spend than last year. CFO Liz Coddington noted that third-party data shows the connected fitness hardware market continues to decline year-over-year, partly due to Peloton's own strategic focus on profitability over volume.

Douglas Anmuth asked what innovations and improvements are required for DoorDash's online grocery experience to surpass the traditional in-store shopping experience, given the progress made with user adoption.

Answer

CEO Tony Xu acknowledged there is a long way to go, focusing on basics like order accuracy, affordability, and service quality. He also highlighted opportunities for the online experience to exceed offline, such as with the DoubleDash feature, which allows shopping from multiple stores in one order. CFO Ravi Inukonda added that DoorDash's large existing consumer base provides a strategic advantage for growing the grocery vertical.

Speaking on behalf of Douglas Anmuth, an analyst from JPMorgan asked about the economic viability of the new $10 minimum basket size and store checks, questioning the need for shopper incentives or different order flows.

Answer

CEO Fidji Simo clarified that these smaller orders are economically sound due to high order density, which allows for increased batching (e.g., four orders at once). She added that these orders often contain high-margin advertising categories like snacks and beverages. For store checks, the model leverages the high frequency of shoppers already in or near stores, creating incremental earning opportunities without significant new costs.

Douglas Anmuth asked about Instacart's key investment areas for 2025, specifically mentioning in-store solutions like Caper Carts and the restaurant vertical, and requested clarification on the company's goal of achieving "steady annual adjusted EBITDA margin expansion."

Answer

CEO Fidji Simo outlined primary investments in the core business (selection, affordability, convenience), enterprise solutions including Caper Carts, and advertising innovation. CFO Emily Maher clarified that steady EBITDA expansion refers to year-over-year growth in both absolute dollars and margin percentage, while allowing for quarterly fluctuations for reinvestment.

Douglas Anmuth asked for more detail on the Q4 dynamics leading to flattish sequential EBITDA margins and for insights into the use case and traction of the new restaurant delivery service.

Answer

CFO Emily Maher explained that Q4 EBITDA guidance reflects positive ad seasonality being offset by holiday-related investments, such as shopper onboarding, while maintaining a commitment to gradual annual margin improvement. CEO Fidji Simo added that the restaurant service is designed to increase overall platform stickiness, noting that users who adopt it spend more on grocery. She highlighted that Instacart sees higher restaurant basket sizes than competitors but will not break out the metrics as it's an integrated flywheel strategy.

Douglas Anmuth of JPMorgan Chase & Co. asked about the current demand for large language model data partnerships beyond existing contracts and the progress in working through data and privacy requirements. He also inquired about the puts and takes of daily traffic coming from Google.

Answer

CEO Steve Huffman stated that while Reddit is in talks with potential data partners, any deal must be respectful of users and fair to the business, noting they are complex and not existential for Reddit. Regarding Google traffic, he described it as a symbiotic relationship that serves as a great source of new users, and while volatile, the core logged-in user growth and business remain stable.