Jeff Seiner

Jeff Seiner, on behalf of Benjamin Black, asked for details on any marketing arrangements within the Disney partnership. He also questioned how the new user onboarding process and revamped Home tab are expected to influence user trends going forward.

Answer

CFO & COO David Lee reiterated the strategic value of the Disney partnership for both parties but did not disclose specific marketing arrangements. Regarding product updates, he detailed how the new onboarding, Home/Search tabs, and 'New and Hot' feature enhance content discovery and user habituation. He connected these improvements to the strong growth in English-language app MAU and rising ARPU, suggesting a positive long-term impact on user trends without providing specific guidance.

An analyst on behalf of Jeff Seiner asked about the difference in monetization between the app and web platforms for U.S. webcomics. They also inquired whether licensed IP primarily drives new user acquisition or deepens engagement with the existing user base.

Answer

David Lee, CFO and COO, stated unequivocally that the company monetizes paid content exclusively on the app, not on the web. This is why the 19% growth in English-speaking webcomic app MAU is a key metric for future paid content performance. Regarding licensed IP, Lee explained that its impact varies by the specific IP but that the goal is to be additive, attracting new users to the platform's large Gen Z audience while also increasing engagement for existing users.

Speaking for Benjamin Black, Jeff Seiner asked for color on Tinder's RPP trends and the initiatives aimed at improving it, such as the redesign of the 'See Who Likes You' tab.

Answer

CEO Spencer Rascoff confirmed that the 'See Who Likes You' feature, which has not been updated in five years, represents a significant opportunity. However, he clarified that the company's strategy is not to directly target RPP or payer count. Instead, the focus is on improving audience and user outcomes, with the belief that revenue and RPP growth will be natural outputs of a better user experience.

Jeff Seiner, on behalf of Benjamin Black at Deutsche Bank, followed up on M&A, asking if the weaker housing market has accelerated deal flow and whether an improving market could also provide an opportunity to accelerate acquisitions.

Answer

Founder, Chairman & CEO Robert Reffkin confirmed that the challenging market, combined with new industry rules and a growing technology gap, has made it difficult for independent brokerages, thus accelerating M&A conversations. He emphasized that Compass's end-to-end platform, a $1.8B investment, is a key differentiator that other firms cannot replicate, making partnership with Compass an attractive path for their leaders.