Mark Mahaney

Mark Mahaney asked about potential reasons for DAU deceleration beyond law of large numbers and monetization focus, specifically market saturation and competitive intensity. He also sought updates on new data points reinforcing long-term growth opportunities and the expected timeline for product features like Speaking Adventures and advanced content for top nine languages to reach Duolingo Score 129.

Answer

Luis von Ahn (Co-Founder and CEO) dismissed concerns about market saturation and competition, citing 85% market share in language learning apps and low internet user penetration in key markets. He noted that churned users primarily stop learning rather than switching to competitors. Speaking Adventures is being tested and expected to scale mid-year for all users. More advanced content for the top nine languages, reaching Duolingo Score 129, is expected within a month or two, with continuous improvements throughout the year.

Mark Mahaney asked about potential market saturation and competitive intensity as factors for user growth deceleration, and if there are new data points highlighting long-term growth opportunities. He also sought an update on the product roadmap for Speaking Adventures and advanced content (specifically for the nine largest languages up to Duolingo Score 129), including their expected timing and impact.

Answer

CEO Luis von Ahn dismissed concerns about market saturation, citing low penetration rates in key markets, and competitive intensity, noting Duolingo's 85% market share in language learning apps and consistent churn reasons unrelated to competition. He announced that Speaking Adventures, a game-like feature incorporating speaking practice, will scale mid-year for all users. Advanced content for the top nine languages, reaching Duolingo Score 129, is expected within 1-2 months, with continuous improvements planned throughout the year.

Mark Mahaney of Evercore ISI asked for an update on the market response to Super tier pricing experiments. He also asked CEO Luis von Ahn for leadership lessons learned from the recent AI controversy and to address concerns about whether slowing growth reflects market saturation or competitive pressures.

Answer

CFO Matt Skaruppa confirmed that pricing experiments were beneficial to bookings, but clarified that the primary driver of ARPU growth is the mix shift to higher-priced plans like Family and Max, not direct price increases. CEO Luis von Ahn reflected that the key lesson from the controversy was the need to provide more context in external communications. He dismissed concerns of market saturation, stating that some of the most penetrated markets are growing fastest and that the total addressable market, including new subjects, remains vast and largely untapped.

Mark Mahaney from Evercore ISI requested an update on Super subscription pricing experiments, asked CEO Luis von Ahn for leadership lessons learned from the recent AI post controversy, and questioned if slowing growth reflects market maturation or competition.

Answer

CFO Matthew Skaruppa confirmed that pricing experiments were successful and led to price increases, but noted that ARPU growth was more significantly driven by FX and plan mix shifts. CEO Luis von Ahn stated the key lesson was the need for more context in external communications. He dismissed concerns of market maturation, pointing to the massive TAM for language learning and new subjects, and noted that some of the most penetrated markets are still growing the fastest.

Mark Mahaney asked if the U.S. market's growth rate is consistent with the global average, inquired about any disclosures on Max adoption traction, and questioned if the shift to Super and Max can sustainably drive ARPU growth.

Answer

CEO Luis von Ahn Arellano confirmed U.S. growth is solid and roughly in line with the global average. While not providing specific numbers, he said Max traction is 'very good,' especially after adding the easily understood Video Call feature. CFO Matt Skaruppa noted that ARPU growth was flat year-over-year and should increase as Max adoption becomes more material in the amortized revenue figures over time.

Mark Mahaney requested an update on Hims & Hers' fertility opportunity and the performance of its recently launched labs offering, including any key data points and how the company views these opportunities.

Answer

Co-founder and CEO Andrew Dudum clarified that fertility offerings have not yet launched, but expressed strong encouragement for the early data from menopause, perimenopause, low T, and labs. He noted that 70% of lab customers identify a treatable area of risk on the platform, indicating high value and potential for these new categories to reach a $100 million run rate.

Mark Mahaney requested an update on the fertility opportunity and the labs offering to date, including specific data points and how Hims & Hers views these opportunities.

Answer

CEO Andrew Dudum clarified that no fertility offering has launched yet. He expressed strong encouragement from the early data for menopause, perimenopause, low T, and labs, believing each has near-term potential to reach a $100 million run rate. He highlighted high-value consumer engagement, significant increases in testosterone levels, strong retention indications, and that 70% of lab customers identify treatable clinical risks.

Mark Mahaney asked for an explanation of how DoorDash accelerated year-over-year growth and total orders for Deliveroo in the December quarter, and whether there are further opportunities for order acceleration.

Answer

Co-founder, Chairman, and CEO Tony Xu attributed Deliveroo's accelerated growth to shipping product improvements, emphasizing that it was a combination of many small fixes rather than one large change. He commended the strong partnership with the Deliveroo team and their execution in meeting customer expectations. He acknowledged that while it was a great start, there is still a 'ton of work to do' and many more opportunities to ship improvements, including applying lessons learned from other parts of DoorDash's business.

Mark Mahaney asked for an explanation of how DoorDash accelerated Deliveroo's year-over-year growth and total orders in the December quarter, and if there are further opportunities to continue accelerating orders.

Answer

CEO Tony Xu attributed Deliveroo's accelerated growth to shipping product improvements and the strong partnership with the Deliveroo team, emphasizing that it was a sum of many small fixes rather than one large change. He acknowledged a great start but also sees significant ongoing opportunities for further improvements.

Mark Mahaney asked about the minimum cash level DoorDash aims to maintain following its recent acquisitions. He also inquired about the potential to expand the 'Marketing as a Service' model from the 7 Rooms acquisition to customers beyond restaurants.

Answer

CFO Ravi Inukonda stated the company's minimum cash target is roughly $1 billion for working capital, with the goal of reinvesting excess cash to generate long-term free cash flow. CEO Tony Xu noted that while 7 Rooms could be expanded, the immediate focus is on sequencing and execution within the restaurant vertical, where significant runway still exists.

Speaking for Mark Mahaney, David from Evercore ISI asked for early merchant feedback on the recently launched commerce platform products and inquired about the urban versus suburban concentration of DashPass members.

Answer

CEO Tony Xu explained that the commerce platform has seen strong adoption, with hundreds of thousands of businesses using products like Storefront and Drive to become digital-first. Regarding DashPass, CFO Ravi Inukonda added that the program hit a record of over 18 million subscribers in Q3, with strength seen across both urban and suburban markets, reflecting broad-based share gains.

Mark Mahaney with Evercore inquired about the marketing spend deleverage observed in the fourth quarter of 2025 and the company's strategy to continue leaning into marketing investments in 2026.

Answer

CEO Glenn Fogel explained that the company takes a tactical, long-term approach, investing when opportunities arise to build franchise value, especially when savings are achieved elsewhere. CFO Ewout Steenbergen added that the Q4 2025 deleverage was driven by attractive ROIs in performance marketing, expansion in social media investments (up 13%), and higher brand marketing spend, which helped accelerate room night growth to 9%. He noted that the company aims for marketing leverage in 2026, unless opportunistic moments arise.

Mark Mahaney with Evercore inquired about the marketing spend deleverage observed in the December quarter of 2025, seeking clarification on the specific factors that prompted Booking Holdings to increase marketing investments and whether this trend is expected to continue into 2026.

Answer

CEO Glenn Fogel explained that the company tactically takes advantage of opportunities to build long-term value, even if it means short-term marketing deleverage, especially when savings are achieved elsewhere. EVP and CFO Ewout Steenbergen added that the deleverage was also due to continued expansion in social media investments and higher brand marketing spend, which helped accelerate Q4 2025 room night growth to 9%. He noted that for 2026, the aim is to achieve marketing leverage again, unless opportunistic moments arise.

Mark Mahaney inquired about Booking Holdings' social media marketing strategy, asking if it has become a material portion of performance marketing and if returns are continually improving. He also asked for more details on Asia's performance, specifically which parts are performing better and how Agoda and Booking.com's complementary strategies are penetrating certain markets.

Answer

Ewout Steenbergen, EVP and CFO, stated that Booking Holdings continues to experiment and invest in social media channels with disciplined ROIs, noting that spend is in the 'couple of hundreds of millions' but still a smaller percentage of overall marketing. He highlighted the benefit of diversifying performance marketing channels. Regarding Asia, Steenbergen expressed satisfaction with growth, attributing it to Agoda's localization strategy (e.g., Korean company in Korea) and Booking.com's global reach. He emphasized ongoing investments in product, marketing, and supply, and the company's strong position as a market leader outside mainland China, which is crucial for long-term growth given Asia's high GDP and travel growth projections.

Mark Mahaney inquired about Booking Holdings' social media marketing strategy, its materiality, and improving returns, as well as the performance and penetration of its brands (Agoda and Booking.com) in specific parts of Asia.

Answer

EVP and CFO Ewout Steenbergen explained that Booking Holdings continues disciplined experimentation and investment in social media channels, focusing on measurable incremental ROIs. He noted that social media spend is in the hundreds of millions, a meaningful but smaller percentage of overall marketing. Regarding Asia, he highlighted strong growth, with Agoda focusing on localization and Booking.com leveraging global reach. He emphasized significant investments in product, marketing, and supply, positioning Booking Holdings as a market leader outside mainland China for long-term growth.

Mark Mahaney of Evercore ISI inquired about the performance of specific markets within Asia and sought an update on whether the potential for Large Language Models (LLMs) to diversify traffic sources is a long-term hypothesis or if early evidence exists.

Answer

CEO Glenn Fogel stated that while Booking Holdings doesn't break out individual country performance, Asia remains the highest long-term growth region, supported by a dual-brand strategy. CFO Ewout Steenbergen added that it's still early for LLMs to show a definitive impact on traffic diversification, but noted the direct channel mix continues to grow, now in the mid-60% range, and social media spend increased 25% year-over-year, indicating active channel diversification.

Mark Mahaney of Evercore ISI inquired about the performance of specific markets within Asia and sought an update on whether Large Language Models (LLMs) are beginning to diversify traffic sources as previously hypothesized.

Answer

CEO Glenn Fogel stated that while Booking Holdings doesn't detail individual country performance, Asia remains the highest long-term growth region, driven by its Agoda and Booking.com brands. CFO Ewout Steenbergen added that it's too early to see a definitive impact from LLMs on traffic diversification but highlighted active partnerships with major AI players, a 25% YoY increase in social media channel spend, and the continued strength of the direct channel, now in the mid-60% range.

Mark Mahaney inquired about the drivers behind Asia's strong performance, questioning if it was due to company-specific actions or a broader market recovery. He also asked about the long-term potential mix for alternative accommodations, which currently stands at 35%.

Answer

CEO Glenn Fogel credited the growth in Asia to both a market recovery and strong execution by the Agoda team in areas like localization and inventory. Regarding alternative accommodations, he noted the company's strong growth but stated he doesn't know the ultimate market share, emphasizing the significant remaining opportunity, particularly in the U.S.

Mark Mahaney questioned when hotels would significantly impact revenue growth acceleration and the take rate dynamics in Q1, specifically what factors are boosting take rate despite bookings and room night deceleration.

Answer

Ellie Mertz, CFO of Airbnb, stated that hotels currently represent a single-digit percentage of total nights booked but are growing nearly double the platform's overall rate, so it will take time for a meaningful contribution. For Q1 take rate, she cited an approximate three-point FX tailwind, benefits from earlier booking lead times in Q4 realizing in Q1 stays, and a modestly higher implied take rate due to timing considerations, including Easter's placement.

Mark Mahaney asked for a realistic timeline for hotels to significantly impact revenue growth acceleration and about the take rate dynamics embedded in the Q1 guidance, specifically why revenue growth is accelerating while bookings growth (ex-FX) appears to be decelerating or similar.

Answer

Ellie Mertz, CFO of Airbnb, stated that hotels are currently a single-digit percentage of total nights booked but are growing nearly double the overall platform rate, so it will take time for them to meaningfully contribute to growth, with an ambition to be a 'meaningfully larger %' by the end of 2026. For Q1 take rate dynamics, she cited a strong 3-point FX tailwind, benefits from earlier booking lead times in Q4 realizing in Q1 revenue, and a modestly higher implied take rate due to timing considerations, including Easter's placement.

Mark Mahaney asked about the early performance and success metrics for the recently relaunched Airbnb Experiences, inquiring about potential attach rates and the timeline to achieve key goals.

Answer

CEO Brian Chesky expressed satisfaction with the high awareness and guest ratings (4.93 stars) for Experiences. He stated that while no specific attach rate targets are being shared, the goal is to increase it by improving supply, integrating more entry points in the booking flow, and raising awareness. Chesky highlighted Paris as a key test market and noted that 40% of "Airbnb Originals" bookings are from locals, indicating a new demand vector.

Mark Mahaney asked about the key initiatives Airbnb is counting on to reaccelerate its core accommodations unit growth back to double-digit levels, questioning the impact of co-hosting, expansion markets, or marketing.

Answer

CEO Brian Chesky outlined a three-horizon strategy. The near-term focus is perfecting the core service by improving reliability, affordability (e.g., global total price display), and usability to boost conversion. The second horizon is accelerating growth in international expansion markets, which are growing twice as fast as core markets. The long-term horizon involves expanding beyond homes.

Mark Mahaney asked for details on the acceleration in room nights during the quarter, questioning if it was driven by specific geographies like Europe. He also sought clarity on the timeline for the co-hosting initiative to become a material driver of growth.

Answer

CFO Ellie Mertz confirmed that the booking acceleration was seen globally as lead times normalized throughout the quarter, though she noted a particular pickup in EMEA after the Paris Olympics. Regarding co-hosting, she stated that while it will take time to scale to a material level, successful multi-year pilots, particularly in France, provide confidence in the strategy's potential to attract high-quality listings.

Mark Mahaney with Evercore ISI inquired about Expedia's product features and marketing strategies aimed at enhancing the travel planning process, particularly capturing travelers earlier in the funnel. He also asked about the potential for further leverage in B2C marketing spend.

Answer

CEO Ariane Gorin emphasized a holistic approach starting with personalized marketing, followed by product enhancements like AI agents, filters, and natural language flows. CFO Scott Schenkel detailed the 50 basis points of B2C marketing leverage achieved through improved efficiency, accountability, and reallocation of spend. Ms. Gorin added that a data-driven approach, stronger creative campaigns, and faster, better-converting sites contribute to marketing efficiency.

Mark Mahaney asked about Expedia's strategy to enhance the travel planning process and capture travelers earlier in the funnel, beyond just booking. He also inquired about the sustainability of B2C marketing leverage and potential new sources of operational efficiency.

Answer

CEO Ariane Gorin explained that the strategy begins with personalized marketing and relevant content to attract travelers, followed by product enhancements like AI agents, AI filters, and property Q&A to guide them from planning to booking. CFO Scott Schenkel detailed that B2C marketing leverage of 50 basis points was achieved through improved efficiency, accountability, and reallocation of spend, with expectations for continued similar performance. Gorin added that disciplined, data-driven marketing, sharpened brand propositions (e.g., Hotels.com Bellboy, Expedia's 'one place you go to go places' campaign), and product improvements (faster sites, better conversion) contribute to marketing effectiveness.

Mark Mahaney inquired about the primary sources of Expedia Group's margin expansion in the coming years and the impact of agentic commerce tools like GenAI search on personalization, conversion, and overall travel demand.

Answer

CFO Scott Schenkel identified B2C sales and marketing optimization, cost of sales efficiencies (including AI and cloud cost dynamics), and overhead management as key drivers for future margin expansion. CEO Ariane Gorin noted that while GenAI search traffic is small but growing, its quality is good, and AI integration in products is already driving personalization and growth, leading to record attach rates. She also sees opportunities for AI to enhance marketing effectiveness and partner experiences, expressing optimism for its impact on travel demand and fulfillment.

Mark Mahaney of Evercore ISI asked CFO Scott Schenkel about the primary sources of margin expansion for Expedia Group in the coming years. He also asked CEO Ariane Gorin about the quality of leads from GenAI search platforms like ChatGPT and the potential for AI-driven personalization to significantly increase online travel demand and fulfillment.

Answer

CFO Scott Schenkel identified B2C sales and marketing optimization, cost of sales efficiencies, overhead management, and the mix shift towards higher-margin advertising and InsureTech as key drivers for future margin expansion. CEO Ariane Gorin noted that while GenAI traffic is small but growing, the lead quality appears good, and AI is already enhancing personalization in products, driving record attach rates, improving marketing effectiveness, and optimizing partner experiences. She also mentioned internal AI use, with virtual agents resolving over 50% of traveler queries and reducing service costs.

Mark Mahaney from Evercore ISI posed high-level questions about the most improved areas and remaining laggards after a year with the new CEO, and where the CFO sees opportunities for margin expansion.

Answer

CEO Ariane Gorin highlighted accelerated momentum in B2B, advertising, and Brand Expedia as improvements, while noting Vrbo and Hotels.com are still on a journey to fill gaps post-migration. She sees an opportunity to move faster, enabled by internal AI. CFO Scott Schenkel pointed to the 150 bps of margin expansion in H1 as evidence of progress and sees further opportunity in H2 from cost actions and rebalancing marketing investments to drive productivity.

Mark Stephen Mahaney asked about the sustainability of the performance improvements at Vrbo and Hotels.com, questioning the key initiatives driving the turnaround and the confidence in their continuation into 2025.

Answer

CEO Ariane Gorin explained that Vrbo's acceleration was driven by 2024 initiatives in product, supply, and marketing, but acknowledged more work is needed to win back travelers lost during its replatforming. For Hotels.com, she noted the brand returned to modest growth after being impacted by its tech migration and loyalty program changes, with significant plans to reinvigorate the brand in 2025. She expressed overall conviction in the trajectory of both brands.

Mark Mahaney asked about the biggest obstacles to Zillow achieving its goal of 75% of connections coming through Enhanced Markets and the expected timeframe. He also inquired about the anticipated contribution of Zillow Pro in the second half of the year and where its revenue would be reported.

Answer

CEO Jeremy Wacksman explained that the obstacles to expanding Enhanced Markets are operational lift, scaling, and training partner teams and loan officers, without providing an explicit timeframe but noting continued growth. CFO Jeremy Hofmann clarified that Zillow Pro is not expected to be a meaningful financial contributor in 2026, serving primarily as a year for learning and adoption, with revenue reported within the residential segment.

Mark Mahaney asked about the biggest obstacles and timeframe for Zillow to achieve 75% of connections coming through Enhanced Markets, and inquired about the expected contribution of Zillow Pro in the second half of the year and where its revenue would be reported.

Answer

CEO Jeremy Wacksman stated that Zillow has not set an explicit timeframe for reaching 75% Enhanced Markets connections, but expects a similar growth pace, with operational lift, partner training, and Zillow Home Loans loan officer capacity as key factors. CFO Jeremy Hofmann clarified that Zillow Pro is not expected to be a meaningful financial contributor in 2026, serving as a year for learning and adoption, and its revenue will be categorized under residential.

Mark Mahaney inquired about the tangible market impact of the NAR settlement changes and asked about the company's forward-looking strategy for managing stock-based compensation (SBC) to achieve sustained GAAP profitability.

Answer

CFO Jeremy Hofmann stated that Zillow has not seen significant changes, noting that commission rates for their top-tier agent partners have remained in a tight band. On SBC, Hofmann explained the plan is to leverage it going forward. Since 90% of SBC is in the fixed cost base, which is expected to grow modestly, revenue growth will drive leverage on the SBC line and lead to greater GAAP profitability over time.

Mark Mahaney followed up on the NAR settlement, asking if it has created market friction or been immaterial so far. He also asked about the future goals for stock-based compensation (SBC) and its role in achieving sustained GAAP profitability.

Answer

CFO Jeremy Hoffman responded to both questions. On the NAR settlement, he stated that commission rates for Zillow's top-tier agent partners have remained in a tight band and reiterated that Zillow expects to be an 'outsized beneficiary' of industry changes. Regarding SBC, he explained the plan is to gain operating leverage on the expense, as 90% of it sits within the controlled ~$1 billion fixed cost base, which will help drive GAAP profitability as revenue grows.

Mark Mahaney from Evercore ISI questioned the progress toward the 6% customer transaction share goal, asking if any of the lead enhanced markets are approaching that target.

Answer

CEO Jeremy Wacksman and CFO Jeremy Hofmann explained that while not providing a specific market's share, the key proxy metric, revenue per total transaction value, has accelerated from 50% to 80% year-over-year growth in their first four enhanced markets. Hofmann added that this strong, steady growth gives them confidence in their strategy and justifies the accelerated rollout of enhanced markets.

Mark Mahaney of Evercore ISI asked for the reason behind the Q2 residential revenue guidance not outpacing the broader industry as it has previously, and questioned the market traction and agent reaction to the pricing of Listing Showcase.

Answer

CFO Jeremy Hofmann attributed the softer Q2 outlook to headwinds from struggling first-time homebuyers and a 'wait-and-see' approach from Premier Agent partners due to the recent spike in interest rates, noting this was similar to a situation in 2022. COO Jeremy Wacksman reported positive traction for Listing Showcase, highlighting benefits for sellers (faster sales, higher prices) and agents (winning more listings), and stated it's still early in its national rollout.

Mark Mahaney inquired about the characteristics of new customers, including their size and vertical, and the specific focus of new AI tools planned for release in 2026.

Answer

CEO Mark Douglas confirmed the continued focus on small and mid-sized businesses in e-commerce, travel, and B2B, noting growth in the small business segment and with performance agencies. He revealed that upcoming AI tools would focus on AI media planning for improved ad placement, alongside other unannounced product extensions.

Mark Mahaney from Evercore ISI asked for insights into the characteristics of new customers, including their size and vertical, and a general overview of the new AI tools MNTN plans to roll out in 2026.

Answer

CEO Mark Douglas explained that new customers largely mirror the existing base, focusing on SMBs in e-commerce, travel, and B2B, with a growing segment of small businesses and performance agencies. Regarding AI, he mentioned upcoming AI media planning technology aimed at optimizing ad placement for increased performance, in addition to unannounced products from MNTN's engineering-heavy team.

Mark Mahaney from Evercore ISI asked about the business impact of lowering the minimum campaign spend for advertisers and inquired if the delta between reported and organic growth rates would be similar for the Q3 guidance.

Answer

COO Chris Innes explained that the minimum spend was lowered from $25,000 to $500 per campaign, enabled by improved targeting, which has opened the platform to more customers without yet significantly altering the average budget. CFO Patrick Pohlen confirmed that for Q3 guidance, the organic growth adjustment (excluding the Maxim Effort divestiture) would likely be in the high single digits, similar to the delta seen in Q2.

Mark Mahaney with Evercore ISI inquired about Amazon's confidence in achieving strong long-term return on invested capital, seeking insights into the duration of the current CapEx cycle, expected profitability levels, and any minimum free cash flow generation targets during this investment phase.

Answer

CFO Brian Olsavsky stated that all new capacity is immediately useful and driven by strong demand, especially for AI services, contributing to AWS's 35% operating margin in Q4. CEO Andy Jassy emphasized that the predominant CapEx is in AWS for core and AI workloads, growing at an unprecedented rate, and expressed confidence in strong returns based on AWS's historical ability to monetize capacity and optimize infrastructure with custom silicon like Trainium.

Mark Mahaney asked about Amazon's confidence in achieving strong long-term return on invested capital, seeking insight into the duration of the current CapEx cycle, expected profitability levels, and any minimum free cash flow generation targets during this period.

Answer

CFO Brian Olsavsky stated that all new capacity is immediately useful and sees a long arc of additional revenue, especially from AI services, which is reflected in AWS's 35% operating margin in Q4, up 40 basis points year-over-year. CEO Andy Jassy added that the capital expenditure is predominantly in AWS for core and AI workloads, which are growing faster than anticipated. He emphasized the unusual opportunity to reinvent customer experiences with AI, driving demand for cloud services, and expressed confidence in strong returns on invested capital, citing AWS's historical success in forecasting demand and optimizing infrastructure with custom chips like Trainium for better price performance and economics.

Mark Mahaney inquired about Amazon's grocery strategy, specifically the impact of perishable same-day delivery on the need for Amazon Fresh stores, and the future outlook for headcount given recent news and AI efficiencies.

Answer

CEO Andy Jassy highlighted Amazon's substantial grocery business, exceeding $100 billion in gross merchandising sales over the last 12 months, including Whole Foods Market and the new Daily Shop concept. He expressed excitement for perishable same-day delivery, now in 1,000 U.S. cities, as a 'game changer' altering traditional weekly stock-up habits. Regarding headcount, Jassy clarified that recent adjustments were culturally driven, aiming to remove layers, increase ownership, and operate as a 'world's largest startup' to be lean, flat, and fast, rather than primarily financially or AI-driven.

Mark Mahaney inquired about Amazon's grocery strategy, specifically the impact of perishable same-day delivery on the need for Amazon Fresh stores and the potential to change customer habits. He also asked about the future outlook for headcount, considering recent news and the efficiencies gained from AI.

Answer

CEO Andy Jassy highlighted Amazon's substantial grocery business, exceeding $100 billion in gross merchandising sales over the last 12 months, including Whole Foods Market and the new Daily Shop concept. He expressed excitement about perishable same-day delivery, now in 1,000 cities, as a 'game changer' that is altering the traditional weekly stock-up. Regarding headcount, Jassy clarified that recent announcements were culturally driven, aiming to remove layers, increase ownership, and operate like a 'world's largest startup' to be lean, flat, and fast, rather than being primarily financially or AI-driven.

Mark Mahaney requested the latest AWS backlog figure, an update on the timeline for resolving AWS supply constraints, and perspective on the long-term financial potential of Alexa Plus.

Answer

VP of Investor Relations Dave Fildes provided the AWS backlog figure of $195 billion. CEO Andy Jassy added that resolving supply constraints, primarily power, will take several quarters but will improve sequentially. He explained that Alexa Plus could drive financial benefits through device sales, enhanced shopping experiences, advertising, and a subscription model.

Mark Mahaney of Evercore ISI requested the latest AWS backlog figure, an update on the resolution timeline for supply constraints, and insight into the long-term financial potential of Alexa Plus.

Answer

VP of Investor Relations Dave Fildes stated the AWS backlog was $195 billion, up 25% year-over-year. CEO Andy Jassy added that supply constraints, primarily power, will likely take several quarters to fully resolve but should improve each quarter. Jassy sees long-term financial potential for Alexa Plus through device sales, increased shopping, and future advertising and subscription revenue opportunities.

Mark Stephen Mahaney asked for clarification on the projected 2025 capital expenditures and inquired if AWS growth is currently being moderated by supply constraints.

Answer

CEO Andy Jassy confirmed that the Q4 capital expenditure of $26.3 billion is a reasonable annualized run rate for 2025, with the majority funding AI infrastructure for AWS, which he views as a positive long-term signal. He also acknowledged that while AWS's AI business is growing rapidly, its growth is indeed constrained by the availability of third-party chips, the ramp-up of Amazon's own Trainium2 chips, and power availability, expecting these issues to ease in the second half of 2025.

Mark Mahaney asked about the factors driving Uber's confidence in accelerating U.S. trips and gross bookings in 2026, and for an update on Uber's willingness to deploy capital into AV fleets, specifically any changes in thinking about capital intensity.

Answer

Incoming CFO Balaji Krishnamurthy attributed U.S. acceleration to stabilizing prices after previous inflationary impacts from insurance. He noted that insurance reform and product-driven cost savings allow for price consistency, improving demand elasticity. He also cited the success of Uber's 'barbell strategy' (e.g., Wait & Save, XXL) and expansion into sparse markets, which are growing faster. CEO Dara Khosrowshahi discussed AV capital deployment, stating Uber invests in AV software players (e.g., Waabi) to secure supply with profitable economics. He mentioned ongoing discussions with financial institutions for fleet financing, comparing it to the Marriott model where asset owners (REITs) handle capital, expecting a similar financialization of AV fleets.

Mark Mahaney from Evercore ISI asked for the primary factors driving confidence in the acceleration of U.S. trips and gross bookings in 2026, and for an update on Uber's willingness to deploy capital into autonomous vehicle (AV) fleets and any changes in its capital intensity thinking.

Answer

Balaji Krishnamurthy, Incoming CFO of Uber Technologies, attributed U.S. acceleration to price consistency due to insurance reform and product-driven cost savings, allowing stable or better pricing. He also cited the "barbell strategy" (low-end products like Wait & Save, high-end like XXL) and expansion into sparse markets. Dara Khosrowshahi, CEO, explained that Uber invests in AV software players (e.g., Waabi) to guarantee future supply on profitable economics. He noted discussions with financial institutions for fleet financing, aiming for a capital-efficient model where asset owners, similar to REITs in hotels, would own the vehicles.

Mark Mahaney asked if insurance cost headwinds are largely resolved and sought Dara Khosrowshahi's view on which autonomous vehicle company is technologically closest to Waymo.

Answer

CFO Prashanth Mahendra-Rajah confirmed that insurance cost inflation has moderated to high single digits, a significant improvement, aided by Uber's safety tech and policy initiatives like tort reform. CEO Dara Khosrowshahi acknowledged Waymo's leadership but pointed to promising AV development from partners in China (WeRide, Pony) and others like May Mobility and Momenta, indicating a growing and competitive field.

Mark Mahaney inquired whether rising insurance costs are a U.S.-specific issue and asked about the sustainability of the advertising business's high growth rate and its penetration path.

Answer

CFO Prashanth Mahendra-Rajah confirmed that rising insurance costs are primarily a U.S. phenomenon, noting that while costs are still increasing, the rate is moderating. CEO Dara Khosrowshahi added that the advertising business has significant room for growth, with Delivery ads currently in the mid-1% range of gross bookings, targeting over 2%. He detailed progress across SMB, enterprise, grocery CPG, and mobility journey ads, expressing confidence in continued expansion.

Mark Mahaney requested an update on Meta AI's engagement and usage, and whether improvements are being applied to its functionality. He also asked CFO Susan Li for clarification on share repurchases, noting no buybacks in the quarter and the company's capital allocation priorities.

Answer

CFO Susan Li reported Meta AI is available in over 200 markets, with engagement driven by WhatsApp (e.g., India, Indonesia) and Facebook (U.S.), and highlighted the focus on making it the most personalized assistant. Regarding share repurchases, she stated that levels vary, and the current highest priority is investing in AI leadership, making it the first-order use of capital, but Meta will remain opportunistic.

Mark Mahaney requested an update on Meta AI's engagement and usage, and whether improvements are just beginning to be applied, along with clarification on Meta's share repurchase strategy.

Answer

CFO Susan Li reported Meta AI is available in over 200 markets, with engagement driven by popular apps like WhatsApp (India/Indonesia) and Facebook (U.S.). Meta aims to make it the most personalized assistant, leveraging platform data for differentiated insights. Regarding share repurchases, she stated that investing in AI leadership is the highest priority for capital allocation, and repurchases will be opportunistic, evaluated against other cash uses.

Mark Mahaney asked about the most encouraging aspects of Meta AI's adoption and use, and Meta's progress on the monetization path for Meta AI, including clarity on future monetization options.

Answer

CEO Mark Zuckerberg highlighted the encouraging adoption by a large user base and the clear correlation between model improvements and increased usage. He noted the recent effort to establish Meta Superintelligence Labs to train next-generation models, which will then be integrated into products to improve engagement and advertising. He also mentioned the long-term vision of AI systems automating advertiser objectives, from creative generation to customer targeting.

Mark Mahaney (Evercore ISI) asked CEO Mark Zuckerberg about the most encouraging aspects of Meta AI's adoption and usage, and where Meta stands on its typical product path of rollout, engagement, and then monetization. He also inquired about the clarity of Meta AI's monetization options.

Answer

CEO Mark Zuckerberg highlighted the large user base and the clear correlation between model improvements and increased usage as the most encouraging signs for Meta AI, indicating a strong runway for engagement. He explained that Meta has just established its Superintelligence Labs to develop next-generation frontier models, which will then be integrated into products. Mark Zuckerberg anticipates these models will enhance monetization through improved engagement, advertising, and by enabling advertisers to automate entire campaigns from objective to creative generation and customer targeting.

Mark Mahaney asked if there were any other soft advertising verticals besides China-based retailers, suggesting autos as a possibility. He also questioned if there is a 'light at the end of the tunnel' for Reality Labs' consistent quarterly losses and what factors would cause them to decline.

Answer

CFO Susan Li identified gaming and politics as other weak verticals in Q1. CEO Mark Zuckerberg addressed Reality Labs, stating that while the focus is on efficiency, the success of AI glasses warrants further investment to scale distribution quickly. He indicated that monetization would become the primary focus only after reaching sufficient scale, implying significant investment will continue in the near term.

Mark Mahaney asked if one-time events in 2024, like elections and major sports, had a material impact on ad revenue that could affect future comps. He also requested an update on WhatsApp's monetization progress and potential.

Answer

CFO Susan Li stated that events like the Olympics historically do not provide a meaningful incremental contribution, and this year was similar. For WhatsApp, she highlighted that click-to-message ads, particularly click-to-WhatsApp, remain the focus and show strong growth. Paid messaging is also growing strongly and was the primary driver of the 48% growth in the Family of Apps 'other revenue' line.

Mark Mahaney asked about the biggest factors influencing Life360's long-term margin expansion from 20% to 35%+, the top product development priorities, and the expected mix of existing versus new customers for Pet GPS.

Answer

Russell Burke, CFO of Life360, identified scale and an increasing mix of higher-margin revenue (primarily advertising) as key drivers for margin expansion. Lauren Antonoff, Executive Director and CEO of Life360, highlighted nurturing new experiences like advertising and Pet GPS, enriching the core app, and a 2026 focus on attracting aging parents. She confirmed the initial Pet GPS focus is on existing members.

Mark Mahaney asked about the biggest factors influencing the pace of margin expansion from 20% to 35%+, if the recent rate of expansion is indicative of future trends, Life360's top product development priorities, and the expected percentage of Pet GPS customers who will be existing Life360 users versus entirely new to the platform.

Answer

Russell Burke, CFO, identified scale and an increasing mix of higher-margin advertising revenue as key drivers for margin expansion. Lauren Antonoff, Executive Director and CEO, stated that product priorities include nurturing existing ad capabilities and Pet GPS, enriching the core app experience, and focusing on making the app better for aging parents in 2026. She also noted that the initial focus for Pet GPS is on existing members due to the differentiated offering.

Speaking on behalf of Mark Mahaney of Evercore ISI, David inquired about new CEO Lauren Antonoff's top priorities for the next twelve months and asked for an update on quarter-over-quarter user penetration trends in both U.S. and international markets.

Answer

CEO Lauren Antonoff stated that user penetration is showing consistent progress across all markets with no major changes. She affirmed her priorities are aligned with the company's established strategy: focusing on user engagement, growing the advertising business, driving international expansion, and solidifying Life360's position as the family 'super app'.

Mark Mahaney asked about the sustainability of consumer incentive levels going forward and whether future leverage against them is expected. He also inquired about advertising intensity, seeking more color on advertising revenue ramp, new pockets of strength, and growth outlook for the segment over the next one to two years.

Answer

President and COO Alex Hungate stated that consumer incentives have come down slightly and are expected to remain around current levels due to the boost from viral product rollouts, allowing accelerated growth with reduced incentives. He noted a slight increase in driver incentives to maintain fulfillment quality amidst high demand. For advertising, he expressed bullishness, citing continued penetration on the food side, a 15% year-on-year increase in quarterly active advertisers on the self-serve platform, and a 41% growth in average spend by active advertisers. He anticipates further growth as Grab Mart scales, attracting more FMCG advertisers, and sees advertising as a key driver of longer-term margin growth.

Mark Mahaney asked about the sustainability of consumer incentives going forward and whether future leverage against them is expected. Mark Mahaney also inquired about advertising intensity, seeking color on advertising revenue ramp, new pockets of strength, and growth outlook for the segment over the next one to two years.

Answer

President and COO Alex Hungate stated that consumer incentives are expected to remain around current levels due to the boost from viral product rollouts, allowing for accelerated growth with reduced incentives. He noted a slight increase in driver incentives to maintain fulfillment quality amid high demand. For advertising, Alex Hungate highlighted continued penetration, a 15% year-on-year increase in quarterly active advertisers on the self-serve platform, and a 41% growth in average spend by active advertisers. He expressed bullishness on advertising, especially with GrabMart's growth attracting more FMCG advertisers, seeing it as a key driver of longer-term margin growth.

Mark Mahaney asked about the sustainability of Grab's high advertising revenue growth and the potential long-term ceiling for advertising as a percentage of GMV.

Answer

COO Alex Hungate explained the growth is sustainable and 'exponential,' driven by both new advertiser acquisition (with merchant penetration still below 50%) and increased spending from existing clients who see an average 8x return on ad spend. He noted that as Grab's network scales, its value to advertisers increases. Citing other markets, he suggested long-term advertising penetration could reach 2-4% of GMV, significantly higher than the current 1.7%.

Mark Mahaney asked about Grab's partnerships with autonomous vehicle (AV) companies, seeking information on the anticipated benefits, potential timelines for pilot deployments, and the economic model.

Answer

President and COO Alex Hungate responded that Grab is excited about the potential of AVs and aims to be at the forefront of exploring the technology. He positioned Grab as an attractive partner due to its regional leadership and AI focus. While declining to provide a specific timeline for pilots, he stated the goal is to understand the operational and insurance requirements for AV fleets, leveraging Grab's existing expertise. He characterized the current phase as early-stage exploration.

Mark Mahaney asked about the source of new Monthly Transacting Users (MTUs) and their engagement levels, and questioned if the recent jump in consumer incentives is a structural change or a temporary measure for new product rollouts.

Answer

CFO Peter Oey clarified that incentive fluctuations are deliberate and intentional to drive product adoption and are not a structural shift, pointing to stable year-over-year mobility margins. President & COO Alex Hungate added that MTU growth is driven by affordability products and high-value travelers, with new users showing strong cross-sell engagement and older cohorts continuing to increase their spending.

Mark Mahaney asked about the future trajectory of incentive spending as a percentage of GMV and questioned the sustainability and sources of the consistent mid-teens growth in Monthly Transacting Users (MTUs).

Answer

Chief Operating Officer Alex Hungate explained that while the long-term trend for incentives is downward due to AI-driven efficiencies, short-term fluctuations are expected when launching new products. He attributed the strong MTU growth to affordability strategies attracting new users and highlighted significant upside potential in converting the large base of annual transacting users into more frequent monthly users.

Mark Mahaney from Evercore requested an update on the performance and retention of core, original publisher relationships, particularly with Walmart, and the progress of their associated loyalty programs.

Answer

Founder and CEO Brian Leach described the publisher side, especially Walmart, as a 'real bright spot,' citing deeper collaboration on in-store and digital marketing and friction-reducing features like phone number ID at checkout. He stated these efforts are successfully driving loyalty and adoption, but emphasized that the primary challenge remains unlocking more offer supply from CPG clients.

Following up on the success with Instacart and DoorDash, Mark Mahaney asked if there are other major greenfield category opportunities for Ibotta to pursue.

Answer

Bryan Leach, Founder and CEO, confirmed that significant untapped opportunities exist but was intentionally circumspect to protect competitive strategy. He hinted at several avenues for growth, including expanding services with current publishers, integrating with adjacent marketplaces, and entering new verticals entirely, such as specialty retail. The response suggests a broad and active pipeline for future publisher growth beyond the current focus.

Mark Mahaney requested more detail on management's comment that Q4 would represent a trough in year-over-year revenue growth, asking for the underlying drivers of the expected reacceleration in 2025 and whether that acceleration would be steady or uneven.

Answer

CFO Sunit Patel explained that the Q4 trough is primarily due to lapping difficult year-over-year comparisons in the D2C and ad revenue segments. He stated that as these headwinds recede in 2025, the continued strong growth from the third-party publisher network and the ramp-up of new partners like Instacart will mathematically drive a significant acceleration in the overall growth rate.

Mark Mahaney of Evercore ISI asked if the 20% KPI improvement from Kokai builds over time and could go higher, and also inquired about the underperformance of the Home & Garden and Style & Fashion verticals.

Answer

CEO Jeff Green responded that the 20% KPI lift is 'merely scratching the surface' of what AI can achieve, with future gains dependent on client engagement and campaign optimization. CFO Laura Schenkein addressed the verticals, explaining that Home & Garden (~8% of business) is seasonal, while Style & Fashion (~4% of business) is a smaller category, and it's normal for some verticals to perform below the company average in any given quarter.

Mark Mahaney asked for more detail on the planned senior leadership hires and which factors would most significantly contribute to a reacceleration in revenue growth.

Answer

Co-Founder and CEO Jeff Green identified hiring a world-class Chief Operating Officer (COO) as a key priority to enhance operational rigor. Regarding reacceleration drivers, he pointed to the massive $1 trillion TAM, of which they have a small share, and significant growth vectors including CTV, international markets, the largely untapped audio channel, and their increasing ability to drive supply chain efficiencies at scale.

Mark Mahaney of Evercore ISI inquired about the go-to-market strategy for Brand 3, asking how it differs from previous launches and how the company is mitigating potential operational risks associated with its new medical-grade offering.

Answer

CEO Oran Holtzman stated that the core strategy remains direct-to-consumer, leveraging Oddity's existing user base and technology. The primary operational difference is the new infrastructure for pharmacy and fulfillment. He emphasized that the key differentiator is deep personalization, with over 20 customer cohorts receiving unique treatments, which has shown a 50% improvement in satisfaction in internal tests. He described the overall go-to-market approach as 'pretty much the same' as prior brands.

Mark Mahaney asked for the reasoning behind the reduction in full-year stock-based compensation (SBC) guidance and questioned the progress of Spotlight monetization regarding ad load, targeting, and advertiser interest.

Answer

CFO Derek Andersen explained that the lower SBC guidance reflects a disciplined and focused hiring approach aligned with strategic priorities. CEO Evan Spiegel stated that Spotlight revenue is a growing share of the total, with its high-consideration inventory performing well for direct response advertisers. He added that Spotlight now accounts for about 48% of total time spent watching content, making it an increasingly meaningful part of the business.

Mark Mahaney asked for the rationale behind lowering the full-year stock-based compensation (SBC) guidance and requested an update on the monetization progress of Spotlight.

Answer

CFO Derek Andersen explained that the reduced SBC guidance reflects a more careful and focused hiring strategy aligned with core priorities. CEO Evan Spiegel reported that Spotlight revenue is an increasing share of the total, performing well for direct response advertisers, and now accounts for over 48% of total content viewing time.

Mark Mahaney noted the significant headcount addition in Q1 and asked if the newly trimmed full-year cost guidance implies that the pace of hiring will slow down in subsequent quarters.

Answer

CFO Derek Andersen confirmed that the company is being thoughtful about managing its cost structure and balancing investments with growth. He explained that Q1 hiring was focused on core priorities like go-to-market for SMBs and engineering. Since personnel costs are a major part of operating expenses, the adjusted cost outlook for the year will naturally involve managing the pace of hiring to align with financial goals.

Asked for commentary on the advertising environment for the second half of the year and the strategic rationale for the dual-surface approach (Search vs. Gemini app) instead of a single unified interface.

Answer

Philipp Schindler noted strong Q2 ad performance but stated it was too early to comment on the H2 outlook. Sundar Pichai defended the two-surface approach, explaining that Search and Gemini serve different core functions (information vs. assistance), which allows for focused innovation, with the potential for future integration.

Mark Mahaney asked for clarification on the MAU decline in Korea, seeking insights beyond the disclosed methodology change, and requested an update on the progress of advertising revenue in North America.

Answer

David Lee, CFO and COO, explained that Korea is a mature market with high penetration, making MAU fluctuations common. He emphasized focusing on the 3.6% constant currency revenue growth, driven by a 6.7% increase in ARPU due to product improvements. He noted that webcomic app MAU is a better long-term predictor. Regarding North American advertising, Lee stated it's still 'early days' and a mid-to-long-term opportunity, with the primary focus remaining on paid content and advertising in more developed markets for now.

Mark Mahaney asked about the sustainability of WEBTOON's strong performance in Japan and the directional outlook for full-year growth and profitability beyond Q1, considering various factors like the Wattpad outage anniversary and MAU stabilization.

Answer

David Lee, CFO and COO, expressed high confidence in the business fundamentals, particularly describing the Japan segment as a "rocket ship." He clarified that the Q1 guidance reflects discrete, short-term issues such as IP slate timing and product development being sequenced for the back half of the year. Lee also noted the guidance accounts for historically weak FX rates but reaffirmed Japan's strength, citing a high number of new local titles and its number one revenue ranking in the non-game app market.

In a follow-up, Mark Mahaney of Evercore ISI asked for a breakdown of the company's IP adaptation costs.

Answer

CEO Junkoo Kim and CSO Yongsoo Kim clarified that while specific components are not disclosed, the business model is 'derisked' and not capital-intensive. The primary model is licensing, which involves minimal direct costs. When costs are incurred, they are for smaller development expenses like scripts, not large-scale studio production. Yongsoo Kim added that co-productions, which have a different cost structure, are not their main business model for IP adaptation.

Mark Stephen Mahaney asked about the recent trend of solid active buyer growth over the past few quarters, questioning if there were new sources for these buyers and whether the positive net-add trend is sustainable.

Answer

CEO David Rosenblatt responded that there has been no fundamental change in the sources of buyers, although organic traffic has improved while paid traffic softened. He directly linked active buyer growth to improvements in conversion rates, which is the company's top priority. Rosenblatt noted that the sustainability of this growth will depend on future conversion trends, which are currently being impacted by the macroeconomic environment, as evidenced by a significant change between March and April.

Mark Mahaney inquired about the materiality of discontinuing the auctions format and sought clarification on whether mid-single-digit revenue growth in 2025 would be sufficient to achieve full-year EBITDA breakeven.

Answer

CEO David Rosenblatt stated that the auctions feature was financially minimal, accounting for about 2% of revenue, and that reallocating resources to machine learning-based pricing tools would be a more effective, marketplace-wide strategy. CFO Tom Etergino clarified they were not providing 2025 guidance, but rather stating a goal to lower the revenue growth threshold required to generate operating leverage to the mid-single-digit range.

Mark Mahaney asked if management remains confident in its ability to offset rising depreciation costs given the record margins, and also questioned the long-term business model for Waymo and the timing of a decision on it.

Answer

CFO Anat Ashkenazi acknowledged that while they continuously push for efficiency, offsetting the accelerating depreciation from significant CapEx investments will become more difficult. CEO Sundar Pichai addressed Waymo, stating the focus is on building the 'world's best driver,' which provides optionality. He highlighted progress through partnerships with Uber and Move, indicating that a successful ecosystem of partners is key, while also exploring various business models without committing to a specific one or timeline.

Mark Mahaney asked about the potential for Google Cloud's operating margins to reach competitor levels and inquired about the biggest opportunities for company-wide cost efficiencies.

Answer

CFO Anat Ashkenazi stated that Cloud's margin expansion to 17% was driven by scale and efficiency efforts, but noted continued investment is required. For the broader business, she plans to build on existing cost discipline by optimizing operations and using AI internally to fund innovation, while balancing this against substantial planned capital investments for 2025.

Mark Mahaney questioned the flexibility of the cost structure to absorb a potential negative economic surprise. He also asked CEO Ian Siegel if he anticipates that technological or social shifts will make the next job market recovery fundamentally different from previous cycles.

Answer

CFO Tim Yarbrough highlighted the high variability of sales and marketing spend as the primary lever for cost control, noting its flexibility to be adjusted based on ROI. CEO Ian Siegel addressed the long-term view, stating that based on 15 years of experience through various cycles, he believes recoveries are inevitable and that new technologies historically create more jobs than they destroy. He expects the market to eventually return to a more stable and predictable state.

Mark Mahaney asked about the outlook for headcount, questioning if it would remain relatively modest, and inquired about lessons learned from recent pricing actions and the company's confidence in its ability to raise prices in the future.

Answer

President Harley Finkelstein stated that Shopify likes its current size and shape and expects to grow the business with a fairly flat headcount. Regarding pricing, he noted that merchants, including at the enterprise level, see Shopify as the 'best deal in town' and that past price increases saw very little pushback, indicating a strong price-to-value ratio and future elasticity.

Mark Mahaney asked for a breakdown of active customer growth between new and reactivated customers. He also inquired about the competitive landscape and any notable intensity beyond pricing.

Answer

CEO Sumit Singh clarified that net new customers were a larger contributor to gross additions than reactivated customers. He also highlighted positive trends in cohort stabilization and improved reorder rates. Singh described the competitive environment as rational and moderate, stating Chewy is focused on executing its own playbook of differentiation through service, assortment, and innovations like Chewy+, the mobile app, and sponsored ads.

Mark Mahaney of Evercore ISI inquired about the sustainability of the flat SG&A cost structure and asked for an update on the performance of Chewy's operations in Canada.

Answer

CFO David Reeder explained that as an at-scale business with highly predictable Autoship revenue, Chewy can leverage its fixed costs in fulfillment, software, and human capital, allowing SG&A to remain relatively flat while still investing for growth. CEO Sumit Singh added that the Canada expansion is proceeding as planned, with high customer NPS and growing assortment, and no material incremental investment is anticipated for the remainder of the year.

Mark Mahaney of Evercore ISI questioned the sustainability of active customer growth, asking for specifics on what is driving higher retention and whether Chewy is tapping into new sources for gross customer additions.

Answer

CEO Sumit Singh expressed confidence in the sustainability of customer growth, attributing it to internal efforts like a broader marketing strategy and improved product experience. He noted that the Q1 2025 new customer cohort shows a low single-digit higher net spend and improved reorder rates compared to the prior year's cohort, indicating higher customer quality and stronger retention.

Mark Mahaney from Evercore ISI questioned the sustainability of active customer growth, seeking details on what is driving improved retention and whether Chewy is tapping into new sources for gross customer additions.

Answer

CEO Sumit Singh expressed confidence in the sustainability of customer growth, attributing it to internal efforts like a broader marketing strategy and an improved product experience. He provided data showing the Q1 2025 new customer cohort has a higher Net Spend Per Active Customer (NSPAC) and better reorder rates than the prior year's cohort, driven by a strong mix of Autoship and consumables.

Mark Mahaney from Evercore ISI questioned the sustainability of active customer growth, seeking details on what is driving improved retention and whether Chewy is tapping into new sources for gross customer additions.

Answer

CEO Sumit Singh expressed confidence in the sustainability of customer growth, attributing it to internal efforts like a broader marketing strategy and an improved product experience. He provided data showing that the Q1 2025 new customer cohort has a higher Net Spend Per Active Customer (NSPAC) and better reorder rates than the prior year's cohort, driven by a strong mix of Autoship and consumables.

Mark Mahaney from Evercore ISI questioned the sustainability of active customer growth, seeking details on what is driving higher retention and whether Chewy is tapping into new sources of gross customer additions.

Answer

CEO Sumit Singh expressed confidence in the sustainability of customer growth, attributing it to internal marketing and product improvements. He provided data showing the Q1 2025 new customer cohort has a higher Net Spend Per Active Customer (NSPAC) and better reorder rates than the prior year's cohort, driven by a strong mix of Autoship and consumables.

Mark Mahaney of Evercore ISI questioned the sustainability of active customer growth, seeking details on the drivers of improved customer retention and new sources of gross additions.

Answer

CEO Sumit Singh expressed strong confidence in the sustainability of customer growth, attributing it to internal efforts like marketing and product enhancements rather than market trends. He provided data showing that the Q1 2025 new customer cohort exhibits higher spending (NSPAC) and better reorder rates compared to the prior year's cohort, indicating an improvement in customer quality.

Mark Mahaney from Evercore ISI requested more detail on the sustainability of active customer growth, specifically asking what is driving higher retention and whether Chewy is tapping into new sources for gross customer additions.

Answer

CEO Sumit Singh expressed confidence in the sustainability of customer growth, attributing it to internal efforts like a broader marketing strategy and an improved product experience. He provided data points showing that the Q1 2025 new customer cohort has a higher Net Spend Per Active Customer (NSPAC) and better reorder rates than the prior year's cohort, indicating higher quality customer acquisition and retention.

Mark Mahaney of Evercore ISI asked about the factors that led to the turnaround in MAU growth after a previous miss and the specific actions taken.

Answer

CEO Daniel Ek stated that the company has "turned a corner" on MAU growth. He attributed the success primarily to numerous small product improvements that boosted engagement. He also noted that marketing spend increased, but only after the team confirmed it was efficient, as measured by the SAC-to-LTV ratio.

Mark Mahaney asked for an update on the progress of the Amazon and Google third-party ad partnerships and whether they are beginning to impact monetization metrics like ARPU in international markets.

Answer

CEO Bill Ready confirmed that both partnerships continue to build sequentially, with the Amazon relationship now expanding into Canada and Mexico. He noted that while the international partnerships with Google and resellers are in earlier stages, they are performing as intended by filling gaps in the ad auction. He suggested it is still early to see a major impact on Rest of World ARPU, but progress is encouraging.

David, on behalf of Mark Mahaney, asked if Lyft has identified any specific use cases where riders might prefer an autonomous vehicle (AV) over a human-driven one, based on early competitive signals.

Answer

CEO David Risher responded that it is too early to identify specific preferred use cases for AVs. He noted that current observations are influenced by the novelty effect and tourism, especially in San Francisco. He stated that Lyft is in a learning and monitoring phase and expects to gain more insight from its new partnerships, such as with May Mobility in Atlanta.