Jim Callahan

Jim Callahan asked what Applovin has learned from the fragmented e-commerce space that is informing its self-serve tools and inquired about any specific performance improvements in the core gaming business during the quarter.

Answer

Co-Founder, CEO & Chairperson Adam Foroughi explained that a key learning was the need to address the fragmented attribution and integration landscape in web advertising. This led to significant work on integrations with partners like Shopify and mobile measurement firms, which was critical before opening the platform. For gaming, he noted there were no major step-function changes, but strong growth continues through iterative model lifts and strong advertiser ROI, demonstrating the business's underlying health.

Jim Callahan of Piper Sandler Companies asked what the company has learned from the diverse goals of e-commerce advertisers that is informing the self-serve toolset, and also inquired about any specific performance improvements in the core gaming business during the quarter.

Answer

CEO Adam Foroughi explained that the key learning from the web ecosystem was its fragmentation in attribution and integration, which required significant work on integrations with MMPs and platforms like Shopify. For core gaming, he noted there were no major step-function changes, but rather continued iterative lifts and strong advertiser ROI, which drives healthy growth even on a large base.

Jim Callahan asked if e-commerce demand is serviced with different inventory than gaming ads and inquired about early feedback on the 28-day attribution models for the gaming vertical.

Answer

CEO Adam Foroughi clarified that all advertisers compete for the same inventory in a unified auction, which consists of full-screen video ads in mobile games. He added that the longer-term models, including the 28-day window, have been available for a couple of quarters and are highly performant, enabling gaming clients to spend more profitably on the platform.

Jim Callahan asked for more detail on the tariff-related headwinds and whether they are temporary, and also inquired about the potential size of the opportunity for Opera GX's launch in South Korea and Japan.

Answer

CFO Frode Jacobsen stated that the tariff headwinds were significant but were successfully offset by global growth, and that a recovery in that area presents a potential upside. Co-CEO Song Lin described the GX expansion into South Korea and Japan as an early-stage but exciting opportunity, driven by the partnership with League of Legends and the strong e-commerce potential in those key gaming markets.

Jim Callahan, on behalf of Piper Sandler, asked about the drivers behind the significant sequential revenue increase from China and sought clarification on whether the Unity ad network is synonymous with the DSP.

Answer

CEO Matthew Bromberg attributed the China growth primarily to improvements in the core Create business and expanded customer relationships. CFO Jarrod Yahes added that the $20 million sequential increase was broad-based across both Create and Grow. He also confirmed that the Unity ad network is effectively the DSP side of the business.