Omar Dessouky • Bank of America

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Co-Founder, CEO & Chairperson Adam Foroughi responded that while he couldn't speak to a competitor's specific data, Applovin's models are already cutting-edge and utilize extensive behavioral data from their high market penetration in gaming. He emphasized that the more significant opportunity lies in expanding outside of gaming. Gaining visibility into broader consumer spending will provide a much richer dataset, making their models more predictive across all categories, including gaming.

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CEO Adam Foroughi stated he couldn't speak to 'game engine data' specifically but emphasized that Applovin's models are already cutting-edge, using extensive behavioral data from its vast market penetration. He argued the more significant future opportunity lies in expanding into non-gaming categories, which will provide broader consumer behavior data and make the models even more predictive across all verticals.

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Executive Adam Foroughi disclosed a low churn rate of sub-3% for web advertisers spending over $250,000 annually, while noting the product is still in its early stages. He stated the company's goal is to achieve the near-zero churn seen in its gaming segment. Executive Jason Bazinet clarified that the net revenue per install metric does include revenue from web advertisers, but the denominator only includes mobile installs, which drives the metric higher.

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CEO Adam Foroughi responded that while the current pixel works for websites, the technology is not yet mature, and they are continuously developing more tools. He clarified that fully supporting non-gaming apps is on the development roadmap for this year and beyond, but it's part of an ongoing evolution rather than a specific 2025 inflection point.

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CEO Adam Foroughi confirmed the e-commerce timeline remains on track for a self-service launch next year. While not disclosing partners, he noted that customers are independently generating buzz on social media due to strong results. He explained their business model is different from peers like The Trade Desk because they target direct-response advertisers who value automated, performance-based outcomes to a revenue goal, where AppLovin takes on the media risk to deliver those results.

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CEO Mark Zagorski stated that while not providing multi-year guidance, confidence has increased in the factors DV controls, such as product launches and AI investments, which build resilience. CFO Nicola Allais added that the guidance methodology itself has not changed, but the company is factoring in the heightened macroeconomic uncertainty that has characterized recent quarters.

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CEO Mark Zagorski explained that DV is largely indifferent to DSP competition as its pricing is customer-based. He noted that while DSPs without embedded verification tools may offer a better sales opportunity, brands ultimately direct the use of DV's data. He confirmed that the CTV market is expanding to smaller advertisers as buying tools become more accessible, which in turn grows DV's addressable market.

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CEO Mark Zagorski attributed the recent success to securing numerous new platform deals, some from former Moat clients, which creates a step-up in recurring revenue. He stated that while the segment is highly profitable and growing well, it is not expected to become much larger than its current 10% share of the total revenue mix.

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CEO Lisa Utzschneider described the mid-market strategy as a thoughtful, multi-quarter ramp of a lower-touch, inside sales team. She explained that the investment is tied to the revenue the team generates. The sales cycle is faster and simpler, catering to performance-based clients who prefer self-serve activation and automated products that drive immediate ROI.

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CEO Lisa Utzschneider described IAS's approach as a 'test and learn' culture, where products are developed and iterated upon with client feedback over time. She cited the Total Visibility product as an example of a long-term development that is now seeing rapid adoption. While being a first-mover isn't always the goal, she noted that with opportunities like the Meta partnership, seizing the first-to-market advantage was a clear strategic imperative.

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CFO Tania Secor clarified that the slowdown in volume growth began in the middle of the third quarter. She specified that August was unusually soft, driven by budget reductions from CPG and retail clients, and the typical seasonal uptick in September did not materialize as expected. She declined to provide specific intra-quarter growth figures.

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CEO Strauss Zelnick declined to provide specific unit predictions, stating the company's focus is on perfecting the product rather than forecasting outcomes. He pointed to GTA V's enduring success and the company's large consumer database (1 billion records) as tools for marketing, but emphasized that delivering a quality experience is the key to success.

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CEO David Baszucki clarified the goal is for creators to build on Roblox, not necessarily take share from others. He outlined a genre-by-genre strategy, emphasizing technical innovations like 3D streaming to support complex games like battle royale on both low-end mobile and high-end PCs. This technical roadmap is complemented by improved economics for developers and direct collaboration with high-end studios to bring them onto the platform.

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CEO David Baszucki clarified that the strategy is not to create a direct revenue model for its AI. Instead, the goal is to build and run proprietary AI models at massive scale and low cost, integrating them into the platform for creation and gameplay. Monetization is indirect, driven by the resulting increase in experience quality, user retention, and innovation, which strengthens the core business.

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CFO David Day noted that while specific economics are confidential, the Disney deal includes opportunities for Magnite to source demand at more attractive take rates, positioning Disney as a future growth driver. CEO Michael Barrett commented on the Google trial, stating that while the outcome is years away, any remedy that levels the playing field in DV+ would be a significant long-term positive for Magnite.

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CFO David Day explained that while core Disney take rates are similar to other premier clients, the partnership's expansion creates new opportunities for Magnite to source demand at more attractive take rates. CEO Michael Barrett added that while the Google legal situation will take years to resolve, any outcome that levels the playing field in DV+ would be a significant positive for Magnite's growth prospects.

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CFO Craig Abrahams responded that Playtika's portfolio remains predominantly focused on in-app purchases. He acknowledged that some titles, like 'Animals & Coins', natively include advertising, but affirmed there are no plans for a broader strategic shift toward hybrid monetization.

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