Research Analyst at Morgan Stanley
Maria Ripps is a Vice President and Senior Analyst specializing in internet, media, and e-commerce sector research, currently covering companies such as Wayfair, Hims & Hers Health, and Etsy, with notable price target calls in 2025. She began her career at Morgan Stanley as a Research Associate from 2014 to 2018, before joining Canaccord Genuity LLC in 2018 where she has led coverage in her sector. Ripps regularly issues closely-followed price targets, such as her recent targets on Etsy and Wayfair, and is recognized on platforms like AnaChart for significant price target movements. She holds relevant securities licenses associated with senior research analysts and is registered with FINRA, reflecting her strong professional credentials and compliance standards.
Maria Ripps asked about the Nativo acquisition, specifically if the platform is expected to maintain its existing advertiser base and how the upgrading model will evolve over time once the acquisition is integrated.
Lauren Antonoff, Executive Director and CEO of Life360, stated that the Nativo acquisition is seen as additive, expecting it to accelerate the base of features and momentum Life360 already has, in addition to bringing Nativo's existing business momentum.
Maria Ripps asked about the Nativo acquisition, specifically if the platform is expected to maintain its existing advertiser base and how the upgrading model will evolve over time once the acquisition is integrated.
Lauren Antonoff, Executive Director and CEO of Life360, stated that the Nativo acquisition is seen as additive, accelerating both existing features and momentum within Life360's business.
Maria Ripps of Canaccord Genuity Inc. asked about the implications of Chris Hulls' transition to Executive Chairman, specifically regarding the future pace of product innovation and whether the company's long-term view on adjacent opportunities has changed.
Co-Founder & Executive Chairman Chris Hulls explained that the operational playbook will not change, as the succession was planned long-term. He highlighted that CEO Lauren Antonoff has already accelerated the company's execution capabilities and that his focus will remain on the free user experience and long-term vision, with no change in strategy. Lauren Antonoff concurred with his assessment.
Maria Ripps asked about Etsy's OpenAI partnership, specifically if the Instant Checkout integration is available to all U.S. sellers, how listings are prioritized, and how the performance fee paid to OpenAI should be considered by investors, including whether it's an extension of offsite ads or if other transaction costs are offset.
CEO Josh Silverman explained that Etsy is excited about agentic commerce, seeing it as an opportunity for its unique offerings. He clarified that OpenAI organically scrapes Etsy listings, but for purchases via Instant Checkout, Etsy provides a data feed for the substantial majority of products, with transactions processed through Etsy Payments. He noted that Etsy pays a success-based commission to OpenAI, similar to an influencer or affiliate fee, and currently does not pass this fee to sellers, so it is not part of the offsite ads program.
Maria Ripps asked about the potential impact on Etsy's strategic framework if the de minimis trade exemption is repealed and inquired about the broader effect of tariffs on the platform.
CEO Josh Silverman stated that the impact depends on the specifics of any new regulations. He noted that Etsy has vastly less dependence on products from China than competitors, suggesting Etsy could be a net beneficiary of China-focused tariffs. He explained that about 25% of U.S. purchase activity involves imports, primarily from Europe, so broad European tariffs could create friction. However, he emphasized the platform's overall resilience due to its distributed, cottage-industry seller base.
Maria Ripps of Canaccord Genuity Group Inc. inquired about expectations for the 'Gift Mode' feature during its first holiday season, how success is being measured, and the marketing strategy to promote it.
CEO Josh Silverman explained that success is measured by absolute GMS from gifting, which grew faster than the overall marketplace in Q3. He highlighted product features like the gift finder and gift teaser. Debra Wasser and Rachel Glaser clarified that they track gifting GMS site-wide, not just within the Gift Mode funnel.
Maria Ripps asked for more details on the revenue acceleration observed in the later part of Q3, including performance by brand or consumer income levels, and the quantified impact of any branded pull-forward. She also sought clarification on how agentic shopping for the furniture vertical differs from simpler items and how Wayfair is optimizing its platform for organic chatbot search results.
Kate Gulliver, CFO and Chief Administrative Officer, attributed revenue growth to compounding share gains from initiatives, noting strong performance in higher-end brands like Perigold and with higher-income consumers. Niraj Shah, Co-founder, CEO, and Co-Chairman, reiterated that strength was from structural business initiatives, not significant pull-forward. Fiona Tan, Chief Technology Officer, highlighted the home category's complexity, emphasizing foundational data integration, transaction enablement, product discovery, and visualization for agentic shopping.
Maria Ripps asked for more color on what drove revenue acceleration in the later part of Q3, including performance by brand or consumer income levels, and to quantify any impact from branded pull-forward.
Kate Gulliver (CFO and Chief Administrative Officer) explained that revenue growth was aided by compounding share gains from initiatives started over a year ago (Wayfair Verified, loyalty program, site experience improvements post-replatforming). She noted strength in higher-end brands like Perigold and specialty retail brands, consistent with the higher-income consumer holding up better. Niraj Shah (Co-founder, CEO, and Co-Chairman) reiterated that the strength comes from structural business initiatives, not pull-forward effects. Ripps also followed up on agentic shopping, asking how it might differ for the furniture vertical compared to simpler items and for specifics on optimizing Wayfair's platform and listings for organic chatbot search results. Fiona Tan (CTO) highlighted the complexity of the home category (high consideration, complex delivery) for agentic shopping. She emphasized ensuring "foundational first-party truth" for Wayfair's catalog, pricing, and fulfillment, and enabling seamless transactions on AI platforms. Niraj Shah (Co-founder, CEO, and Co-Chairman) added that product discovery is unique in the home category, with customers seeking inspiration and trends. He suggested agentic tools could help with visualization and nuanced decision-making, both on AI chatbots and Wayfair's own platform, leveraging Wayfair's extensive customer data.
Maria Ripps asked about the motivation and effectiveness of the 'Black Friday in July' sale and whether stronger July trends were driven by this event. She also inquired about the company's ability to flex non-marketing expenses in response to volatile revenue.
CEO Niraj Shah explained that a higher promotional cadence is part of the playbook for recessionary environments and that the July event was successful. CFO Kate Gulliver highlighted eight consecutive quarters of SOTG&A reduction, stating this cost discipline provides the flexibility to make strategic investments in areas like price while hitting profitability targets.
Maria Ripps inquired about the anticipated changes to Lovesac's customer acquisition approach and marketing effectiveness in the near term, given the ongoing brand evolution refresh. She also asked about the most complementary partnerships or distribution channels for the Snug by Lovesac platform, now that it has expanded to over 100 showrooms.
CEO Shawn Nelson highlighted significant upcoming changes in marketing, including the new Snug campaign with Britney Snow, a new CMO, and a shift in tone and aesthetic. President Mary Fox added that the company is becoming more confident and clear in its messaging, focusing on targeted approaches for each product platform and leveraging a new product hierarchy to maximize potential across channels and online. Regarding Snug partnerships, Shawn Nelson explained that Snug's simpler nature, compared to Sactionals, makes it suitable for environments beyond Lovesac's owned and operated showrooms, as it doesn't require intricate in-person demonstrations. He emphasized the website as the first and most important channel for Snug and hinted at future online and offline opportunities for products that don't require extensive hand-holding, without announcing specific partnerships yet.
Maria Ripps asked about anticipated changes to Lovesac's customer acquisition approach and marketing effectiveness following the brand evolution refresh, and how the new Snug by Lovesac product line might influence distribution partnerships.
CEO Shawn Nelson highlighted significant upcoming changes in Lovesac's go-to-market strategy, advertising delivery, and communication, exemplified by the new Snug campaign featuring Britney Snow. President Mary Fox added that the brand evolution work provides a clearer product hierarchy, enabling more targeted marketing to maximize potential across products and channels, including the website. Shawn Nelson further explained that Snug's simpler nature, compared to Sactionals, makes it suitable for environments beyond Lovesac-owned showrooms, influencing future channel strategy for products not requiring intricate in-person demonstrations, with the website being the primary channel.
Maria Ripps from Canaccord Genuity Inc. inquired about the rationale for ending the Best Buy partnership, the future of distribution partnerships like Costco, and how US-China tariff developments affect plans to exit manufacturing in China.
Founder & CEO Shawn Nelson and President & COO Mary Fox explained that the Best Buy partnership was valuable for early growth but is no longer necessary given Lovesac's expanded showroom footprint, with 80% of Best Buy locations now near a Lovesac store. They affirmed a commitment to the Costco partnership, planning a 15% increase in roadshows. On China, Shawn Nelson stated the tariff situation makes manufacturing there 'not viable' and confirmed they have a clear path to move production to other geographies, aligning with a long-term strategy to manufacture closer to the consumer.
Maria Ripps asked for more color on the updated Q4 outlook and how recent product launches, like the recliner, will inform the company's marketing strategy for the upcoming year.
CFO Keith Siegner explained the primary driver for the revised Q4 guidance is the challenging macro category, which has impacted quote conversion, rather than internal factors. CEO Shawn Nelson added that while quote volume is strong, consumer caution persists. Regarding marketing, President & COO Mary Fox stated the company is hiring its first Chief Marketing Officer and plans a major campaign for the new recliner next year, noting its successful soft launch occurred without significant media support.
Maria Ripps questioned the rationale for narrowing the full-year guidance range despite in-line Q2 results and asked for an update on the optimal number of showrooms and their current impact on sales.
CFO Keith Siegner stated that the guidance was tightened due to pragmatic caution regarding macro uncertainty, the upcoming election, and intensified competitor promotions. President and COO Mary Fox reaffirmed the long-term target of over 400 showrooms, highlighting their continued 'halo effect' on digital sales and their role in driving brand awareness and traffic for new product launches.
Maria Ripps of Canaccord Genuity inquired about Lovesac's inventory strategy in light of the 90-day tariff delay and asked for an update on consumer behavior trends observed in February and March.
Mary Fox, President and COO, explained that the company had proactively built up inventory across all product lines and feels well-positioned. She noted that teams are actively working to leverage their redundant supply chain, focusing on dominant sourcing countries like Malaysia and Vietnam. Fox also stated that consumer performance has been stable quarter-to-date, with a strong February, and no significant changes in behavior to report.
Maria Ripps of Canaccord Genuity Group Inc. inquired about the factors causing the significant Q2 decline in the Owned & Operated segment and its potential for stabilization. She also asked for an update on the progress of the strategic partnership with Rebuy.
CEO Don Patrick explained that the Owned & Operated decline was driven by a narrowed and more volatile media supply on biddable platforms following the FTC settlement, which impacted the company's ability to buy media at acceptable margins. Regarding the Rebuy partnership, he stated that while it's still in its early stages, progress is ahead of schedule on the product and operational fronts, with good momentum in onboarding merchants and significant upside potential for 2025 and 2026.
Maria Ripps of Morgan Stanley inquired about the financial timeline and strategic impact of the new Rebuy Engine partnership, the drivers for accelerating Commerce Media Solutions (CMS) growth, and the company's strategy to stabilize the Owned & Operated (O&O) segment by expanding supply channels.
Executive Donald Patrick explained that the Rebuy partnership is a major strategic milestone providing access to the Shopify ecosystem, with its financial contribution being upside to current forecasts. He stated that CMS growth acceleration depends on acquiring new commerce partners and leveraging the platform's operating leverage. Regarding the O&O segment, Patrick noted that supply challenges stem from FTC requirements and that the company is exploring new media channels, expecting stabilization later in 2025 while still forecasting a near-term decline.
Maria Ripps of Canaccord Genuity Inc. asked which specific Viant AI features are most attractive to large marketers and sought clarity on the future financial impact of a lost agency client.
COO Chris Vanderhook identified AI Bidding as a highly attractive feature, noting its ability to deliver up to 46% in media cost savings, which resonates with large brands. CFO Larry Madden clarified that the lost client's impact would be minimal beyond Q3, projecting a headwind of less than 100 basis points in Q1 2026 due to the client's heavy seasonal spending in the summer.
Maria Ripps inquired about performance trends in the Automotive, Retail, and Public Sector verticals, and asked about plans to expand the Direct Access program and its economic model.
COO Chris Vanderhook and CFO Larry Madden noted that Viant under-indexes in the Automotive and tariff-affected Retail verticals, limiting risk, while the Public Sector remains a steady growth driver. Regarding Direct Access, Chris Vanderhook explained that Viant does not charge a fee for the service, passing savings to clients to drive adoption and platform spend. Expansion focuses on deepening integrations like Household ID and IRIS_ID with major partners like Disney and Paramount.
Maria Ripps followed up on the Lockr acquisition, seeking clarity on its strategic fit and whether it would be monetized directly with publishers or serve primarily as a tool to accelerate adoption of Viant's Household ID and IRIS ID.
COO Chris Vanderhook clarified that while the acquisition will accelerate the adoption of Household ID and IRIS ID, the broader strategic goal is to establish Lockr as a utility for the entire open internet. He emphasized that helping publishers easily use their first-party data is key to enabling the open internet to successfully compete against walled gardens.
Maria Ripps from Canaccord Genuity Inc. asked for more color on the drivers behind strong subscriber trends despite lower ad spend and questioned how to model the revenue contribution from diversification initiatives in the second half of the year.
Co-Founder and CEO Matt Meeker attributed the strong subscriber acquisition to successful ad experimentation and a strategic focus on higher-quality customers, evidenced by a significant mix shift to the premium Super Chewer product. For diversification, Meeker reiterated the goal for the Commerce segment to exceed 30% of total revenue, projected Bark Air to contribute 2-3% of revenue for the year, and highlighted the upcoming 'Bark in the Belly' consumables line as a key driver for both product and channel diversification.
Maria Ripps of Canaccord Genuity Inc. asked for details on BARK's strategy to diversify its supplier base beyond China, including potential new countries and associated costs. She also inquired about the progress of the Shopify platform migration and its impact on key performance indicators like customer conversion rates.
CFO Zahir Ibrahim explained that BARK has been exploring alternative manufacturing geographies and has the flexibility to move all toy production out of China by the end of the fiscal year. Co-Founder and CEO Matt Meeker added that the Shopify migration is largely complete, enabling more nimble testing and experimentation, and that platform functionality is now at or ahead of its previous state.
Maria Ripps inquired about the growth trajectory for the Direct-to-Consumer (DTC) segment following the Shopify migration and asked about the long-term strategic vision for BARK Air, including its potential financial impact and capital needs.
Matt Meeker, Co-Founder and CEO, stated that the DTC segment is expected to stabilize in fiscal year 2026, with overall company growth driven by the Commerce segment and BARK Air. Regarding BARK Air, he noted it is too early to deem it a material driver despite its positive gross margin and $2 million in quarterly revenue. Meeker emphasized the company's commitment to an asset-light model, confirming there are no plans to purchase aircraft.
Maria Ripps asked about the strategy for converting four consecutive quarters of new subscriber growth into total order growth and the expected timeline for brand awareness initiatives to yield results. She also inquired about BARK's exposure to potential tariffs on Chinese imports and the company's mitigation plans.
Co-Founder and CEO Matt Meeker explained that while BARK is approaching an inflection point for DTC growth, performance is being cautiously managed due to the holiday season and a major platform transition to Shopify. He noted a strategic shift from promotional, 'hollow-calorie' customer acquisition to long-term brand building, which will take time. Regarding tariffs, Meeker stated that mitigation plans are in place, the consumables business is unaffected as it's domestically sourced, and the company's healthy gross margin provides a buffer to absorb potential impacts.
Maria Ripps asked about the competitive impact of the FTC settlement on the under-65 health vertical and the outlook for P&C ad spend amid economic uncertainties.
CEO Steve Yi explained that the settlement establishes a new baseline for the under-65 business, where they still see long-term opportunity. He also expressed strong optimism for the P&C vertical, stating that robust carrier profitability and the view that automotive tariffs are manageable should sustain healthy advertising investments.
Maria Ripps inquired about the competitive impact of the FTC settlement on the under-65 health vertical and sought details on P&C insurance carrier spending trends for the second half of the year amid economic uncertainties.
Co-Founder & CEO Steve Yi explained that the FTC settlement establishes a new baseline for the under-65 business, which they believe has long-term growth potential. He also expressed strong optimism for P&C carrier budgets, stating that the industry's underlying profitability remains robust and that the potential impact of automotive tariffs appears increasingly manageable.
Maria Ripps asked for additional color on how P&C carrier spending might evolve in the second half of the year, particularly with the risk of automotive tariffs, and requested a refresh on the dynamics of the company's open versus private marketplaces.
Executive Steven Yi expressed continued optimism for sustained growth in the auto insurance market, citing strong underlying carrier profitability and a broadening recovery. While acknowledging potential headwinds from auto tariffs, he stated the industry is well-positioned to manage the impact. Executive Patrick Thompson added that while the long-term trend is toward the open exchange, the P&C vertical's higher private marketplace mix could cause a near-term shift toward private.
Maria Ripps asked for details on the factors 'bending the GSV curve,' specifically the main contributors to take rate expansion, and the future opportunity with the new acquisitions. She also questioned how the company prioritizes investments in AI and enterprise versus returning capital to shareholders.
CFO Erica Gessert attributed the take rate increase to successful pricing experiments, 19% YoY growth in Connects revenue, and 13% growth in Freelancer Plus subscriptions. CEO Hayden Brown highlighted that AI features and strong demand in AI work categories are driving GSV. On capital allocation, Gessert emphasized a balanced approach, noting the ability to expand margins, execute high-ROI M&A, and return capital, citing the $170 million in recent buybacks.
Maria Ripps of Canaccord Genuity Group Inc. inquired about the dynamics driving the implied revenue decline after Q1 in the full-year 2025 guidance and asked for more color on the impact of AI on the business, particularly catalysts to accelerate AI-related GSV growth.
CFO Erica Gessert attributed the cautious 2025 guidance to cumulative macro headwinds and the 6-to-9-month lag effect on the business, noting top-of-funnel dynamics have not changed. CEO Hayden Brown expressed excitement about AI, stating the platform benefits from these trends as it flexibly adapts to new work demands, evidenced by the 60% YoY growth in AI-related GSV in 2024. Brown highlighted that AI skills are emerging across all categories and Upwork's own AI tool, Uma, is enhancing the platform.
Maria Ripps from Canaccord Genuity asked about plans for advertising spend next year given the cost-saving initiatives, the broader customer acquisition strategy, and any performance divergence between smaller and larger customers.
CFO Erica Gessert confirmed that high-ROI performance marketing investments will continue, with cost savings focused on 'nonworking' marketing spend. She noted that while GSV per client increased across all segments, smaller businesses continued to show more relative strength in volume, a consistent trend that informs the company's cautious outlook.
Maria Ripps inquired about the impact of expanded content categories on Meta advertiser engagement and asked for the company's thoughts on extending its percent-of-spend pricing model to the CTV market.
CEO Mark Zagorski stated that adding more granular categories on Meta has improved the solution and driven customer engagement. He confirmed Meta has been a collaborative partner. Regarding pricing, Zagorski noted DV is increasingly open to dynamic models like percent-of-media, as it benefits them in both high-CPM environments like CTV and low-CPM emerging markets. He cited the Scibids product as a successful test case for this model.
Maria Ripps inquired about the specific drivers of the Q1 revenue outperformance and asked for the company's broader strategy on capturing direct response advertising budgets with its Scibids and Rockerbox acquisitions.
CEO Mark Zagorski attributed the Q1 beat to faster-than-expected scaling from new enterprise clients and strong product adoption from existing customers, particularly for ABS and Scibids. He described a convergence of brand and performance advertising, where tools like Scibids for optimization and Rockerbox for attribution are positioning DV to capture budgets from advertisers focused on measurable results.
Maria Ripps requested more details on the large advertiser that significantly reduced spend, including its vertical and the risk of contagion. She also asked about the expected ramp-up cadence for new social media activation solutions and their potential to accelerate measurement adoption.
CEO Mark Zagorski identified the advertiser as a CPG customer facing specific commodity cost pressures that led to broad marketing cuts, stating it is not a contagion risk as the CPG vertical is otherwise growing. He added that while social activation adoption will be tempered in 2025, it should create a flywheel effect, as measurement is a prerequisite for activation on platforms like Meta.
Maria Ripps inquired about how the new social activation feature on Meta is expected to scale compared to open web solutions and asked about the timeline for launching similar features on other social platforms.
CEO Mark Zagorski explained that while the ultimate scale on platforms like Meta is massive, the initial adoption and integration period is longer than in the open web, which is more seamless. He noted the powerful 'virtuous cycle' of measurement feeding activation takes longer to initiate on social. He also announced plans for a similar activation solution on TikTok in early 2025, which would provide pre-bid and post-bid coverage across DV's top three social platforms.
Maria Ripps of Canaccord Genuity Inc. asked if Vivid Seats is exploring alternative customer acquisition channels with more manageable competition. She also inquired about the dynamics causing accelerated pressure on the private label segment versus owned properties.
CFO Lawrence Fey noted that while the company is always looking, alternative channels like paid social are a fraction of the size of paid search, making retention and repeat business a more likely near-term focus. CEO Stan Chia explained that the disproportionate decline in the private label business was due to a change made by one of its largest partners, which resulted in substantially smaller volume from that specific source.
Maria Ripps questioned the outlook for market share dynamics and whether GOV could return to growth by year-end. She also asked if the company aims to maintain a specific minimum EBITDA margin.
CFO Larry Fey acknowledged the market share loss in Q1, primarily from performance marketing, and suggested a similar trajectory for Q2, making a return to growth this year unlikely. Regarding margins, Fey described the situation as a fluid exercise of balancing marketing spend, profitability, and volume, stating they are actively managing the trade-offs but did not commit to a specific margin floor.
Maria Ripps inquired about the key investment priorities for scaling in new international markets, asking whether the focus is on the buyer or seller side, and if existing relationships are being leveraged. She also asked about the expected impact of the FTC's new 'Junk Fee Rule'.
CEO Stan Chia explained that after building the international platform, the focus is on ramping up supply from both existing and new local sellers to fuel consumer growth. Regarding the FTC rule, Chia stated that Vivid Seats is supportive of the pro-consumer, transparency-oriented measure and is fully prepared for its implementation, believing a level playing field is beneficial.
Maria Ripps inquired about expectations for broader live event industry growth in 2025 and sought more color on the revised Q4 guidance, asking what changed regarding the impact of the 2025 concert on-sales.
CEO Stanley Chia stated the company remains bullish on 2025 due to secular trends and an expected return of stadium tours. CFO Lawrence Fey added that the guidance reflects the continuation of Q3's concert softness into Q4 and acknowledges that while there are positive signs for the 2025 calendar, not enough major tours have been tangibly announced to fully factor in a robust recovery yet.
Maria Ripps of Canaccord Genuity Inc. asked about the performance dynamics between Hims & Hers' core business and its weight loss segment, including personalized GLP-1 trends, and inquired about the cross-border implications of the planned Canadian generic semaglutide launch.
CFO Yemi Okupe detailed that Q2 faced headwinds from off-boarding commercially available GLP-1 subscribers, while the core business saw a drag from a strategic shift away from on-demand sexual health. He highlighted that dermatology, oral weight loss, and daily sexual health offerings are growing over 55% YoY. CEO Andrew Dudum stated the Canadian launch will be strictly regulated, with no cross-border shipments between the U.S. and Canada.
Maria Ripps asked for details on initiatives to reaccelerate growth in the sexual health vertical and the expected timing for subscriber and revenue normalization.
CEO Andrew Dudum explained the long-term strategy involves transitioning the sexual health business from a low-retention, on-demand model to a higher-retention daily treatment model offering multi-action benefits. CFO Yemi Okupe added that daily solution users have grown from under 10% to nearly 40% of the sexual health base, demonstrating significantly stronger retention, a trend the company will continue to foster.
Maria Ripps inquired about the process for determining if new patients are suitable for personalized semaglutide dosing and the potential competitive landscape changes once the GLP-1 shortage ends.
CEO Andrew Dudum explained that the platform assesses a patient's prior GLP-1 experiences, side effect sensitivities, and health goals to determine clinical necessity for personalization, aided by the company's MedMatch technology. He anticipates that once the shortage officially ends, the market for compounded semaglutide will shrink, with Hims & Hers focusing on providing personalized dosages where there is a documented clinical need, as per regulations.
Maria Ripps asked for the key reasons behind patient drop-outs during the initial GLP-1 treatment period and inquired about the expected average duration for GLP-1 patients on the platform.
CEO Andrew Dudum addressed the question, highlighting that Hims & Hers sees 70% adherence at 12 weeks versus 40% in traditional settings. He attributed this to the platform's ability to manage common side effects like nausea and muscle loss through frequent provider communication, AI-powered tools like MedMatch, and personalized dosing. CFO Yemi Okupe added that the average duration for these consumers is currently around five months, driven by the platform's transparency and supportive care model.
Maria Ripps of Canaccord Genuity Inc. asked about the potential impact of tariffs on insurance carrier budgets in the second half of the year and how the evolution of AI-powered search could affect EverQuote's traffic acquisition strategy.
CEO Jayme Mendal responded that the carrier landscape is very healthy, with dialogue centered on growth, and he does not anticipate budget constraints due to tariffs. Regarding AI search, Mendal explained that while the insurance industry may adapt more slowly, EverQuote is well-positioned to engage with LLM-based traffic through its own developing AI conversational workflows.
Maria Ripps asked for additional color on second-half 2025 trends, the potential impact of auto tariffs, the structural health of carrier profitability, and the industry's response to the vacated one-on-one consent FCC rule.
Executive Jayme Mendal stated that the outlook for carrier profitability is favorable, with many carriers overshooting targets, which provides a cushion against potential tariff impacts. Executive Joseph Sanborn added that while growth is expected to moderate in the second half due to tougher comps, carriers remain focused on growth and are in a much healthier position to absorb cost inflation than in 2022. Regarding the FCC rule, Sanborn confirmed the industry largely reverted to its prior state after the rule was vacated, though EverQuote retained some beneficial quality-control mechanisms it had developed.
Maria Ripps asked for more detail on the full-year guidance, specifically the projected contribution from CTV growth versus other platform improvements. She also inquired about Nexxen's strategy in live sports and advertiser demand for that inventory.
CFO Sagi Niri clarified the guidance assumes CTV will constitute about 40% of programmatic revenue for the year, while noting the company remains cautious due to market uncertainty. CEO Ofer Druker added that live sports is a growing area of demand, and Nexxen is well-positioned to serve it through existing partnerships, with plans to expand internationally via its VIDAA/Hisense relationship.
Asked for details on the drivers of the full-year guidance, specifically the contribution from CTV growth versus platform improvements, and inquired about the company's strategy and advertiser demand for live sports offerings.
The full-year guidance is based on caution and assumes CTV will reach ~40% of programmatic revenue, without factoring in potential gains from the Google case. The live sports strategy focuses on leveraging partnerships to meet strong advertiser demand, with plans for international expansion via the VIDAA relationship.
Maria Ripps requested more color on the full-year guidance, specifically the expected contributions from CTV segment growth versus platform-specific improvements. Additionally, she asked about Nexxen's broader strategy for live sports inventory.
CFO Sagi Niri clarified that the guidance assumes CTV will constitute about 40% of programmatic revenue but does not factor in any potential upside from the Google antitrust verdict. CEO Ofer Druker addressed the live sports question, highlighting its growing importance and Nexxen's ability to meet advertiser demand through extensive partnerships, with plans to expand internationally via its relationship with VIDAA and Hisense.
Maria Ripps of Canaccord Genuity asked about the potential for Spotify to introduce a lower-priced subscription plan that includes advertisements, similar to models seen in the video streaming industry.
Co-President and CBO Alex Norström explained that while the company analyzes such models, the dynamics in music are different from video streaming. He stated that internal analysis using a 'value map' suggests that a lesser-featured, lower-priced SKU would not currently drive significant incremental growth to the overall model, as users expect the core premium functionality. However, he did not rule it out for the future, noting geographical considerations could play a role.
Maria Ripps from Canaccord Genuity asked if Spotify is considering expanding the ad-free experience for Premium subscribers to include audio podcasts, similar to what is now offered for video podcasts.
Co-President & CPTO Gustav Söderström clarified that the current offering of an experience without dynamic ad interruptions is specifically for video podcasts, where a new monetization payout was created for creators. He stated that due to different technical ad stacks, there are 'no plans for audio at the moment.'
Maria Ripps inquired about the key considerations for the 2025 adjusted operating income margin and whether it could surpass the 15% target. She also asked which channels or geographies would be prioritized as pet acquisition spending increases.
CFO Fawwad Qureshi stated that while formal 2025 guidance is pending, key factors include pricing, retention stability, and expense management. CEO Margi Tooth added that increased acquisition spending will focus on digital channels to drive education and will build incrementally across existing lead generation and conversion funnels rather than targeting new, specific channels.
Maria Ripps inquired about the potential additional costs or inventory investments needed for the new feature allowing up to eight items per shipment. She also asked about the expense outlook for fiscal 2026.
CEO Matt Baer clarified that the 8-item Fix option has demonstrated higher keep rates and better order economics, making it a profitable feature. CFO David Aufderhaar noted that FY25 will benefit from the full-year impact of FY24 cost savings. For FY26, he stated the approach will remain methodical, balancing targeted investments with the natural operating leverage that will occur upon returning to growth.
Maria Ripps asked about the key contributors to the stronger-than-expected spend per client in Q1 and inquired about the sustainability of these positive dynamics for the full-year outlook.
CEO Matt Baer attributed the higher client spend to improved inventory newness, the new 'flex Fix' option allowing up to 8 items, and an optimized pricing architecture. He also highlighted increased client engagement via the Freestyle channel. CFO David Aufderhaar added that Q1 Fix AOV rose 6% year-over-year, driven by an early shift to fall/winter products and a faster-than-expected ramp of the flex Fix feature, which supports the raised full-year guidance.
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